Finmeccanica Chief Is Arrested in Bribery Case

Italy awoke Tuesday to yet another corporate scandal with political overtones, as Milan prosecutors arrested the head of the state-controlled aerospace company Finmeccanica in an investigation related to the sale of 12 helicopters to India in 2010.

The Finmeccanica chairman and chief executive, Giuseppe Orsi, was taken in for questioning by prosecutors, as was Bruno Spagnolini, head of Finmeccanica’s Augusta Westland helicopter unit. Prosecutors also raided the Augusta Westland corporate offices in Milan.

The investigation is focused on whether company executives violated bribery and corruption laws in seeking the helicopter deal with the Indian military.

Prime Minister Mario Monti said Tuesday that the government — owner of a 30 percent stake in Finmeccanica – was prepared to do whatever necessary to clean up the company, the second-largest industrial group in Italy after Fiat.

“There is a problem with the governance of Finmeccanica at the moment and we will face up to it," Reuters quoted Mr. Monti as saying on RAI television.

Finmeccanica said Tuesday that “the operating activities and ongoing projects of the company will continue as usual.” In addition, the company expressed “support for its chairman and C.E.O., with the hope that clarity is established quickly,” while “reaffirming its confidence in the judges.”

The Indian Defense Ministry said in a statement that in “view of media reports” linking it with Finmeccanica’s Augusta Westland unit in Britain, it “had sought information” from the Italian and British governments, but that “no specific inputs” were received substantiating the allegations. The ministry said it was referring the case to the Central Bureau of Investigation, the Indian agency responsible for investigating corruption cases.

Italian press reports said two others, residents of Switzerland, were being sought by Milan prosecutors on suspicion that they had acted as middlemen.

A spokeswoman for Finmeccanica in London, Clare Roberts, declined to comment beyond the company’s official statement.

Prosecutors could not immediately be reached for comment.

Consob, the Italian stock market regulator, banned short selling of Finmeccanica shares for Tuesday and Wednesday, after the company's shares fell more than 10 percent in early trading.

The news was first reported by the Italian newspaper Corriere della Sera.

With national elections just two weeks away, the Italian establishment has been unnerved recently by a series of high-profile corporate investigations.

In one, Banca Monte dei Paschi di Siena, a Tuscan bank, has acknowledged using secret derivatives deals to mask hundreds of millions of euros in losses.

That investigation has focused attention on the role played by the Bank of Italy and its then-chairman, Mario Draghi, who is now president of the European Central Bank.

It has also given the former prime minister, Silvio Berlusconi, an issue with which to attack his political enemies as he angles for a comeback. The bank is based in Siena, in a part of northern Italy that is a stronghold of the leftist Democratic Party. Mr. Berlusconi, the conservative former prime minister who hopes to be a spoiler in the elections this month, has been trying to lay blame for the scandal at the Democratic Party’s doorstep.

Mr. Draghi asserted last week that the Bank of Italy had “done everything it should” with respect to the bank, adding that much of the criticism was “part of the regular noise that elections produce.”

In another case, Eni, the country’s biggest oil company, said last week that Milan prosecutors had expanded an investigation of alleged corruption at one of its subsidiries, Saipem, to include the parent company and its chief executive, Paolo Scaroni.

In a country that is rarely held up as a technological leader, Finmeccanica’s trendsetting AgustaWestland helicopter division and Alenia Aermacchi aeronautics unit are sources of national pride. Finmeccanica is among the world’s largest aerospace, defense and security companies, employing 70,000 people worldwide and reporting first-half 2012 revenue of about €8 billion, or about $10.7 billion.

Since taking over in May 2011, Mr. Orsi has sought to restore investor confidence by cutting debt and selling off nonstrategic operations, but the restructuring has lagged behind market hopes. On Jan. 18, Standard & Poor’s cut Finmeccanica’s credit rating to junk status and said the outlook was negative, citing the company’s failure to reduce its debt more quickly.

Mr. Orsi’s problems mark just the latest troubling chapter for Finmeccanica. He took over in May 2011 after his predecessor, Pier Francesco Guarguaglini, was himself felled by allegations involving the role of his wife, Marina Grossi, while she was chief executive of Finmeccanica’s Selex unit.

Reporting was contributed by Hari Kumar in New Delhi, Elisabetta Povoledo in Rome and Jack Ewing in Frankfurt.

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Grammys 2013: Fun., Mumford, Gotye lead a newer generation

Grammy Awards voters gave their top honor to British roots music band Mumford & Sons for their album "Babel" on Sunday at the 55th awards ceremony. Other top honors were distributed to a broad array of younger acts, including indie trio Fun., electronic pop artist Gotye, rapper-R&B singer Frank Ocean and rock group the Black Keys.

"We figured we weren't going to win because the Black Keys have been sweeping up all day — and deservedly so," Mumford & Sons front man Marcus Mumford said after he and his band members strode to the stage at Staples Center in Los Angeles to collect the award from last year's winner, R&B-soul singer Adele.

Pop culture historians may look back at 2013, however, as the year the Grammy Awards gave up its long fight against new forms of music dissemination, embracing songs and videos that consumers soaked up by way of YouTube and other Internet outlets as opposed to purchasing them.

PHOTOS: 2013 Grammy Award winners

"Somebody That I Used to Know," the wildly popular collaboration between Gotye and New Zealand pop singer Kimbra, took the top award presented for a single recording upon being named record of the year, which recognizes performance and record production.

"Somebody…" not only was one of the biggest-selling singles of 2012 but also has notched nearly 400 million views on YouTube, powerfully demonstrating the increasingly vital role of the "broadcast yourself" video Internet phenomenon. Different YouTube posts of Ocean's "Thinking About You" single have totaled nearly 60 million views.

New York indie rock trio Fun. was named best new artist, an acknowledgment of the good-time music the group brought to listeners and viewers last summer largely through its runaway hit single "We Are Young," which has racked up nearly 200 million YouTube views. It also was named song of the year, bringing awards for the group's songwriters, Jack Antonoff, Andrew Dost and Nate Ruess, and collaborator Jeff Bhasker.

GRAMMYS 2013: Full coverage | Pre-show winners | Winners | Ballot

"Everyone can see our faces, and we are not very young — we've been doing this for 12 years," Ruess said as they collected the award.

The song's title could also serve as a theme for the evening, which was dominated by other relatively young acts in the most prestigious Grammy categories.

Singer, rapper and songwriter Ocean emerged the victor in the one category that pitted him directly against real-life rival Chris Brown, as his critically acclaimed solo debut album, "Channel Orange," won the urban contemporary album award. A few minutes later Ocean got a second Grammy with Kanye West, Jay-Z and the Dream in the rap-sung collaboration category for their single "No Church in the Wild."

GRAMMYS 2013: Winners list | Best & Worst |  Red carpet | Timeline | Fashion | Highlights

Ocean's tuxedo covered all but his hands, but it appeared as he picked up the urban album award that his left arm remained in a wrist brace he'd exhibited Thursday at rehearsals for this year's broadcast, a remnant of his scuffle last month with Brown over a parking space at a recording studio. Los Angeles Police Department investigators said Ocean informed them that he would not press charges against Brown.

It was the Black Keys' Dan Auerbach who quickly built up steam as the front-runner to dominate this year's awards, taking several statuettes barely an hour into the show, including producer of the year for himself and three with his group including rock performance, rock song and rock album for "El Camino."

The Black Keys homed in on the fundamentals of rock 'n' roll — big guitar riffs, lustful lyrics and a bevy of musical hooks on "El Camino," one of the best reviewed albums of the group's career.

FULL COVERAGE: Grammy Awards 2013

Auerbach picked up another award as producer of the blues album winner, Dr. John's "Locked Down."

Carrie Underwood grabbed the country solo performance Grammy for the title track from her album "Blown Away," which also won the country song award for writers Josh Kear and Chris Tompkins earlier during the pre-telecast ceremony at Nokia Theatre, across the street from Staples Center.

The Zac Brown Band added to its growing place as a new-generation country powerhouse with a win of the country album trophy for its "Uncaged," built on muscular Southern rock guitar riffs, elaborate multipart vocal harmonies and jam-band instrumental excursions.

Last year's big winner, Adele, collected the first statuette of the night for her single "Set Fire to the Rain" in the pop solo performance category.

The show got off to an eye-popping start with a Cirque du Soleil-inspired performance by Taylor Swift of her nominated single "We Are Never Ever Getting Back Together."

The preponderance of youthful acts not broadly known to mainstream TV audiences heightened the use of cross-generational pairings. Rising songwriter and singer Ed Sheeran shared the stage early with veteran Grammy darling Elton John, while Bruno Mars teamed with Sting and Rihanna in a Bob Marley tribute later in the show. Several members of Americana acts, including Alabama Shakes and Mumford & Sons, sang alongside veterans John, Mavis Staples and T Bone Burnett in a salute to drummer Levon Helm of the Band.

But it was the young guns to whom the evening — and perhaps the future — of the Grammy Awards belonged.

The Grammys are determined by about 13,000 voting members of the Recording Academy. The eligibility period for nominated recordings was Oct. 1, 2011, to Sept. 30, 2012. The show aired on CBS live except on the West Coast, which gets a tape delay.

randy.lewis@latimes.com

Twitter: @RandyLewis2

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Mouse Maker Scurries Away From PCs Toward iPad Future

The struggles of personal computer giants like Dell, Hewlett-Packard, Microsoft and Intel to adapt to a world driven by smartphones and tablets can be viewed clearly through slumping sales and falling share prices. But if you go out one orbit, to a company like Logitech, which makes the add-ons for PCs – the mice, keyboards and speakers – the rapid decline of the personal computer ecosystem is especially stark.

In the past two years the California and Switzerland-based company has seen its stock slide 62 percent in value. Sales in the most recent quarter, which ended December 31, were down 14 percent as Logitech posted an operating loss of $180 million. “Continued weakness in the global PC market was the primary factor in our disappointing Q3 results,” is how newly installed CEO Bracken Darrell summed it up.

Not exactly the way you want to kick off your first earnings call as the boss of the $2.3 billion company. But even as Darrell, the former head of Whirlpool’s business in Europe, has been busy paring down business lines, he’s surprisingly upbeat about what he plainly describes as a Logitech turnaround. And in what he’s dropping and what he’s kept, you can see where Darrell believes Logitech and consumer tech is headed.

First, what is gone. Darrell plans to wind down Logitech’s Harmony remote control, digital video security gear, speaker docks and console gaming peripherals by the end of this year. He doesn’t think consoles are going away, but he is more enamored of the premium prices that gamers pay for high-end gaming mice and other gadgets. Clearly Darrell believes speaker docks have been supplanted by Bluetooth speakers, and Logitech is pushing hard there with its UE (Ultimate Ear) boom box offerings.

As to remote controls and video security gear, both its Harmony business and security business never reached a size that could make a dent in Logitech’s bottom line. More importantly, Darrell says, neither remotes nor video security plugged easily into the distribution and scale advantages Logitech has in the PC world – and as grim as the news from PC-land is, Logitech is staying in the game.

Darrell argues that while consumers are flocking to tablets and smartphones for all kinds of computing tasks, at work you are still going to need either a desktop or notebook PC. “The PC industry will always be important to us,” Darrell says. “It’s not going to be something for us to brag about, but it’s going to be a profitable thing for us to do.”

The things Darrell does want to brag about he pulls from a canvas bag. There is a mobile-friendly version of the UE Bluetooth boom box, a metal and rubber-clad competitor to Jawbone’s Jambox.

Next, there is an ultrathin keyboard cum cover that clips magnetically to an iPad mini. Its standard iPad-sized counterpart has been a hit, and Darrell expects the same from the smaller version.

Clad in aluminum, the mini version has a fit and finish that pairs well with Apple’s sleek hardware. Design has to be a differentiator for Logitech going forward, Darrell says, but so does speed – especially when you are operating in Apple’s world. Logitech’s first ultrathin keyboard for the standard iPad took 13 months to develop and get to store shelves. The mini version took three months, Darrell says. Certainly Logitech learned a fair bit from the first iteration that it could apply to the second, but Darrell has also made changes, moving a core team of designers and engineers closer to manufacturing in Asia, for example, to speed things up.

The team anticipates the dimensions of follow-up Apple products, following rumors and its own gut to guess at thinness, width and length. As much as it can, it preps a product for manufacture, and then waits on Apple. “I don’t know about other companies, but Apple doesn’t share anything with us in advance,” Darrell says. “We have to have these workarounds, and just be ready to hit the start button as fast as we can. I think we can get down to a three-week turnaround with our current approach.”

When asked whether some manufacturing for Logitech could move to the United States, as Apple’s Tim Cook has suggested Apple will be looking to do more of, Darrell pauses. At Whirlpool, and before that Procter & Gamble, Darrell has spent a career shifting manufacturing to the lowest cost parts of the globe. “But then General Electric put water heater manufacturing back in Kentucky,” Darrell says. “I put G.E. into that business years ago, and I never would have guessed it was coming back to the United States, but it did. I honestly don’t know what to think about where manufacturing is headed next.”

Darrell does know where he’s taking Logitech next, deep into a design-driven world that revolves around smartphones and tablets. And while he’s not boastful, he’s confident in Logitech’s chances. “We are in the biggest revolution in computing since (Steve) Jobs and (Bill) Gates,” Darrell says. “Ultrabooks, notebooks, tablets, they are all going to blend together. But at the end of the day, all those devices are going to need some kind of keyboard, and that starts to look like a world we know.”

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Well: Getting the Right Addiction Treatment

“Treatment is not a prerequisite to surviving addiction.” This bold statement opens the treatment chapter in a helpful new book, “Now What? An Insider’s Guide to Addiction and Recovery,” by William Cope Moyers, a man who nonetheless needed “four intense treatment experiences over five years” before he broke free of alcohol and drugs.

As the son of Judith and Bill Moyers, successful parents who watched helplessly during a 15-year pursuit of oblivion through alcohol and drugs, William Moyers said his near-fatal battle with addiction demonstrates that this “illness of the mind, body and spirit” has no respect for status or opportunity.

“My parents raised me to become anything I wanted, but when it came to this chronic incurable illness, I couldn’t get on top of it by myself,” he said in an interview.

He finally emerged from his drug-induced nadir when he gave up “trying to do it my way” and instead listened to professional therapists and assumed responsibility for his behavior. For the last “18 years and four months, one day at a time,” he said, he has lived drug-free.

“Treatment is not the end, it’s the beginning,” he said. “My problem was not drinking or drugs. My problem was learning how to live life without drinking or drugs.”

Mr. Moyers acknowledges that treatment is not a magic bullet. Even after a monthlong stay at a highly reputable treatment center like Hazelden in Center City, Minn., where Mr. Moyers is a vice president of public affairs and community relations, the probability of remaining sober and clean a year later is only about 55 percent.

“Be wary of any program that claims a 100 percent success rate,” Mr. Moyers warned. “There is no such thing.”

“Treatment works to make recovery possible. But recovery is also possible without treatment,” Mr. Moyers said. “There’s no one-size-fits-all approach. What I needed and what worked for me isn’t necessarily what you or your loved one require.”

As with many smokers who must make multiple attempts to quit before finally overcoming an addiction to nicotine, people hooked on alcohol or drugs often must try and try again.

Nor does treatment have as good a chance at succeeding if it is forced upon a person who is not ready to recover. “Treatment does work, but only if the person wants it to,” Mr. Moyers said.

Routes to Success

For those who need a structured program, Mr. Moyers described what to consider to maximize the chances of overcoming addiction to alcohol or drugs.

Most important is to get a thorough assessment before deciding where to go for help. Do you or your loved one meet the criteria for substance dependence? Are there “co-occurring mental illnesses, traumatic or physical disabilities, socioeconomic influences, cultural issues, or family dynamics” that may be complicating the addiction and that can sabotage treatment success?

While most reputable treatment centers do a full assessment before admitting someone, it is important to know if the center or clinic provides the services of professionals who can address any underlying issues revealed by the assessment. For example, if needed, is a psychiatrist or other medical doctor available who could provide therapy and prescribe medication?

Is there a social worker on staff to address challenging family, occupational or other living problems? If a recovering addict goes home to the same problems that precipitated the dependence on alcohol or drugs, the chances of remaining sober or drug-free are greatly reduced.

Is there a program for family members who can participate with the addict in learning the essentials of recovery and how to prepare for the return home once treatment ends?

Finally, does the program offer aftercare and follow-up services? Addiction is now recognized to be a chronic illness that lurks indefinitely within an addict in recovery. As with other chronic ailments, like diabetes or hypertension, lasting control requires hard work and diligence. One slip need not result in a return to abuse, and a good program will help addicts who have completed treatment cope effectively with future challenges to their recovery.

How Families Can Help

“Addiction is a family illness,” Mr. Moyers wrote. Families suffer when someone they love descends into the purgatory of addiction. But contrary to the belief that families should cut off contact with addicts and allow them to reach “rock-bottom” before they can begin recovery, Mr. Moyers said that the bottom is sometimes death.

“It is a dangerous, though popular, misconception that a sick addict can only quit using and start to get well when he ‘hits bottom,’ that is, reaches a point at which he is desperate enough to willingly accept help,” Mr. Moyers wrote.

Rather, he urged families to remain engaged, to keep open the lines of communication and regularly remind the addict of their love and willingness to help if and when help is wanted. But, he added, families must also set firm boundaries — no money, no car, nothing that can be quickly converted into the substance of abuse.

Whether or not the addict ever gets well, Mr. Moyers said, “families have to take care of themselves. They can’t let the addict walk over their lives.”

Sometimes families or friends of an addict decide to do an intervention, confronting the addict with what they see happening and urging the person to seek help, often providing possible therapeutic contacts.

“An intervention can be the key that interrupts the process and enables the addict to recognize the extent of their illness and the need to take responsibility for their behavior,”Mr. Moyers said.

But for an intervention to work, Mr. Moyers said, “the sick person should not be belittled or demeaned.” He also cautioned families to “avoid threats.” He noted that the mind of “the desperate, fearful addict” is subsumed by drugs and alcohol that strip it of logic, empathy and understanding. It “can’t process your threat any better than it can a tearful, emotional plea.”

Resource Network

Mr. Moyer’s book lists nearly two dozen sources of help for addicts and their families. Among them:

Alcoholics Anonymous World Services www.aa.org;

Narcotics Anonymous World Services www.na.org;

Substance Abuse and Mental Health Services Administration treatment finder www.samhsa.gov/treatment/;

Al-Anon Family Groups www.Al-anon.alateen.org;

Nar-Anon Family Groups www.nar-anon.org;

Co-Dependents Anonymous World Fellowship www.coda.org.

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This is the second of two articles on addiction treatment. The first can be found here.

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DealBook: S.E.C.'s Revolving Door Hurts Its Effectiveness, Report Says

Robert S. Khuzami took a step through Washington’s revolving door on Friday, departing his post as one of Wall Street’s top enforcers en route to the private sector, where he is expected to reap millions.

A new report suggests that Mr. Khuzami, like other Securities and Exchange Commission officials who pass between Washington and Wall Street, will be well worth the pay.

The Project on Government Oversight, or POGO, a nonprofit watchdog group long critical of the revolving door, is set to release a study on Monday highlighting a pattern of S.E.C. alumni going to bat for Wall Street firms — and winning. The report, similarly skeptical of Wall Street lawyers joining the S.E.C., cites recent enforcement cases and scuttled money market regulations to underscore its concerns.

“Former employees of the Securities and Exchange Commission routinely help corporations try to influence S.E.C. rule-making, counter the agency’s investigations of suspected wrongdoing, soften the blow of S.E.C. enforcement actions, block shareholder proposals and win exemptions from federal law,” the report says.

By way of example, it says that in three cases against UBS, after enforcement actions threatened to limit the giant Swiss bank’s ability to issue new securities, the bank hired former S.E.C. lawyers. Each time, the report says, the agency granted relief. (The S.E.C. has defended such decisions as being in the best interest of investors, who might suffer if an otherwise stable bank was suddenly unable to sell securities.)

The watchdog report provides only anecdotal evidence of bias and does concede that the S.E.C. adopted checks on influence peddling. Nonetheless, it raises questions about the rising consequences of the revolving door.

Even as Mr. Khuzami is leaving as the S.E.C.’s enforcement chief, President Obama recently named Mary Jo White as his choice to run the agency. Ms. White is a former federal prosecutor who built a lucrative legal practice defending Wall Street executives.

The POGO report’s findings were based on interviews with current and former S.E.C. officials and thousands of federal records obtained through the Freedom of Information Act. It is the second major report the group has issued on the topic, and it comes on the heels of other research yielding mixed conclusions about the importance of the revolving door.

The Government Accountability Office issued a report in 2011 chastising the S.E.C. for failing to keep track of ethics advice the agency gives past and current employees, which the report argued could minimize postemployment conflicts of interest. The study, which described the S.E.C.’s policies as being consistent with those of other agencies, did go on to note that the financial system might benefit from the agency hiring outsiders well versed in Wall Street minutiae.

In a study last year, a group of accounting experts concluded that, contrary to public concerns, the revolving door actually toughened enforcement results. S.E.C. lawyers enforce a hard line at the agency, that study said, partly to showcase their investigative prowess to future employers.

The accounting professors’ study lent support to the S.E.C.’s argument that it goes to great lengths to prevent conflicts of interest. Mr. Khuzami, who has not announced his next job, will face at least a one-year “cooling off” period preventing him from lobbying the S.E.C. on behalf of a client. For an additional year, he must file certain documentation with the S.E.C. before facing off with the agency.

S.E.C. officials have also argued that despite Mr. Khuzami’s Wall Street résumé — he served as a top lawyer for Deutsche Bank — he oversaw one of the most aggressive periods of prosecution in the agency’s history. He revamped the agency’s enforcement unit in the wake of the financial crisis, the officials noted, and took aim at Wall Street giants like Goldman Sachs.

“We follow governmentwide regulations and laws that deter conflicts and ensure impartiality,” John Nester, the agency’s spokesman, said in an e-mail. “We decide issues on their merits according to the rules and regulations governing the securities industry regardless of whether the requesters have an S.E.C. background or not.”

For decades, lawyers have passed through the revolving door on their way to government posts and back again.

The POGO report found that from 2001 through 2010, 419 alumni of the S.E.C. filed almost 2,000 disclosure forms saying they planned to represent an employer or client before the agency. William R. Baker III, a former associate director of enforcement and now a lawyer at Latham & Watkins, was the top filer, submitting 46 notices.

The report also found that former employees had helped companies avoid certain penalties and thwart regulatory initiatives, including an effort by Mary L. Schapiro, then its chairwoman, to reform money market funds, a sector central to the financial crisis. The report noted that former S.E.C. employees had lobbied to block the plan, and added that Luis Aguilar, an S.E.C. commissioner who previously was an executive at Invesco, a money management firm, played a role in “derailing” Ms. Schapiro’s effort.

The watchdog group was also critical of last year’s study by accounting researchers who found that S.E.C. actions were not harmed but strengthened by the revolving door.

That study, POGO said in its report, looked at “only a sliver” of the S.E.C.’s work. “They did not examine, for instance, how the revolving door affects the S.E.C.’s regulation of Wall Street, its granting of relief to specific companies, its handling of cases related to the financial crisis or its decisions to drop investigations without bringing charges.”

Shivaram Rajgopal of Emory University, the lead author of the accounting group’s study, defended its findings, saying it spanned 17 years. He added that while it did not include the financial crisis, it did look at investigations like the one into Enron, the energy company that filed for bankruptcy in 2001 amid an accounting scandal.

“Studies by definition are limited,” he added.

The new report from the watchdog group may be a topic at a New York City Bar Association panel on the revolving door scheduled for Tuesday in New York, a debate for which Mr. Khuzami was initially scheduled. On Friday, Mr. Khuzami caused a stir among some fellow panelists when he withdrew, citing a “conflict.”

Mr. Khuzami later clarified it was a scheduling conflict, not a conflict of interest.

A version of this article appeared in print on 02/11/2013, on page B1 of the NewYork edition with the headline: S.E.C.’s Revolving Door Hurts Its Effectiveness, Report Says.

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Ambitious makeover planned for old housing project

Denise Penegar puts a little extra effort into the teenage girls, the ones who've dropped out of high school to care for their firstborns.

Don't be afraid, the outreach worker tells them. Come down to the housing project's community center, get your GED and some job skills. Change your life.

"I was one of those girls," said Penegar, now 51 and still living in Jordan Downs, the Watts housing project where she was born.

Sometimes, she imagines how different her life might have been if someone had knocked on her door when she was 17, caring for her first baby. What would it have meant just to have "someone who is here who can help pick me up"?

Penegar is on the front lines of a bold social experiment underway at Jordan Downs, a project notorious to outsiders for its poverty, blight and violence but seen by many longtime residents, for all its problems, as a close-knit community worth preserving.

In the last year, the Housing Authority of the City of Los Angeles has begun an effort to transform Jordan that could cost more than $600 million. The plan is to turn the complex of 700 aging units into a mixed-income community of up to 1,400 apartments and condominiums, with shops and restaurants and fancy touches such as native plant gardens. The city hopes to draw in hundreds of more-affluent residents willing to pay market rate to live side by side with the city's poorest.

Spurred by changes in federal funding and policy, such "mixed use" developments have sprung up in place of infamous housing projects all over the country. But experts say Jordan is taking an approach that has not been tried on this scale.

Typically, public housing residents are moved out ahead of the bulldozers, scattered to search for new shelter. In Los Angeles, the housing authority has promised that any of the 2,300 Jordan residents "in good standing" can stay in their old units until the day they move into new ones. The project is to be built in phases, beginning with units on 21 acres of adjacent land purchased by the authority in 2008 for $31 million.

To ease the transition, the city has dispatched "community coaches" like Penegar, along with teachers, social workers, therapists — even police officers whose charge is not to make arrests but to coach youth football and triathlon teams.

In essence, officials intend to raze the buildings, not the community — and radically change its character.

It will be an enormous challenge, with success likely to be measured in tiny increments.

Only 47% of adults at Jordan reported any wages to the housing authority last year. As in many urban projects, poverty and social ills have multiplied through the generations, leaving some residents unfamiliar with opportunities and expectations beyond the neighborhood. Some rarely leave the area.

Before inviting in new neighbors with expectations of safety and comfort, the housing authority has begun flooding Jordan Downs with social services. Many of the programs are focused on women, because more than 60% of Jordan Downs' tenants live in households headed by single mothers. But men are targeted too — for job training and lessons in parenting, for instance.

By December, 10 months into the effort, more than 450 families had been surveyed by intake workers and 280 signed up for intensive services.

"Most people would say it's ambitious, but I think it's essential," said Kathryn Icenhower, executive director of Shields for Families, the South Los Angeles nonprofit that is running many of the new programs under a more than $1-million annual contract with the housing authority.

It is unknown, however, how effective the social services will be, how easy it will be to draw in wealthier residents and how many millions of dollars the federal government — a major source of funding — will provide.

Already, the housing authority has picked a development team — the for-profit Michaels Organization and the nonprofit Bridge Housing, both with respectable track records in other cities. But with financing still uncertain, it is unclear exactly how many units will be built or how much various occupants would pay.

Ultimately, a working family could pay hundreds of dollars more in rent than unemployed tenants next door for a nearly identical unit. Officials say they do not expect Watts to draw the same kind of high-income residents as the former Cabrini Green project in Chicago, which sat on prime real estate near downtown. But Jordan is in a convenient location, near the intersection of the 105 and 110 Freeways; and in a high-rent city like Los Angeles, even the steepest rates at Jordan are likely to seem a bargain.

Despite the onslaught of social services and some palpable changes — including a 53% plunge in the violent crime rate at Jordan last year — financial risks abound.

Later this spring, the authority plans to put in an application for $30 million from the federal government's Choice Neighborhoods Program as seed money. Without it, the project could be delayed.

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Wired Science Space Photo of the Day: Wings of the Seagull Nebula

This image shows the intricate structure of part of the Seagull Nebula, known more formally as IC 2177. These wisps of gas and dust are known as Sharpless 2-296 (officially Sh 2-296) and form part of the “wings” of the celestial bird. This region of the sky is a fascinating muddle of intriguing astronomical objects — a mix of dark and glowing red clouds, weaving amongst bright stars. This new view was captured by the Wide Field Imager on the MPG/ESO 2.2-metre telescope at ESO’s La Silla Observatory in Chile.

Image: ESO [high-resolution]

Caption: ESO

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After Whitney death, Clive Davis gala presses on

BEVERLY HILLS, Calif. (AP) — A year after Whitney Houston‘s death, music executive Clive Davis remembered her in words — and video.

Houston died last year just hours before the annual Clive Davis Gala was to start. On Saturday, Davis said his world continues “to be so shattered by her passing” and that Houston‘s death still feels “unreal.”

Then Davis played what he called a rare performance of Houston belting “All The Man That I Need” on Saturday the Beverly Hilton Hotel.

Houston‘s brother and sister-in-law, Gary and Pat Houston, attended the gala, where Davis thanked them “for being here tonight.” He also called Houston the “greatest, greatest singer of our lifetime.”

Dutch electronic artist Afrojack kicked off the performances with a DJ set, but it was Gladys Knight who got the crowd up out of their seats with a closing number.

Her voice — still crisp and loud — felt at ease on “Neither One of Us” and “Midnight Train to Georgia.”

“You’ve been waiting here for a while and we all have to go, and I’m catching a train,” the 68-year-old singer said before going into her popular hit that had Verdine White of Earth, Wind & Fire dancing around his chair.

And Knight wasn’t the only performer to leave an impression during Davis’ nearly four-hour event.

Scottish singer Emeli Sande was well-received when hitting the right notes on “Heaven.” Miguel, who is nominated for five awards at Sunday’s Grammys, was energetic when he performed his R&B hit “Adorn.” He danced in the middle of the tables in the audience, and at one point sang to Taylor Hawkins’ wife Alison — as the Foo Fighters drummer watched on.

Usher, too, brought R&B flavor to the stage when he performed in honor of music executive Antonio “L.A.” Reid, who received the president’s merit award. Usher sang some of “Burn” and “Climax,” which featured the acoustic guitar.

The event was full of A-listers there to enjoy the live music: Johnny Depp, Quincy Jones, Sting, Joni Mitchell, Diddy, Miley Cyrus, Frank Ocean, Dave Grohl, Magic Johnson and San Francisco 49ers quarterback Colin Kaepernick were in the crowd.

“I’ve read the papers and I know you’ve been spending time with,” Davis said when announcing that Katy Perry and John Mayer were in the audience.

Usher also drew laughs when he told an old story about Reid signing the then teen to his record label.

“If I never can thank you for anything, it would be for not letting me go with the name Cha Cha,” Usher said of his previous stage name.

The pre-Grammy event also featured performances by Patti Smith, best new artist nominees the Lumineers and Jennifer Hudson, who paid tribute to Knight and performed with the singing veteran.

Ne-Yo, Carly Rae Jepsen, Brandy, David Guetta, Babyface, Wiz Khalifa, Jordin Sparks, Tyra Banks and dozens of others attended Davis’ gala.

___

Follow Mesfin Fekadu on Twitter at http://twitter.com/MusicMesfin

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For Families Struggling with Mental Illness, Carolyn Wolf Is a Guide in the Darkness

When a life starts to unravel, where do you turn for help?

Melissa Klump began to slip in the eighth grade. She couldn’t focus in class, and in a moment of despair she swallowed 60 ibuprofen tablets. She was smart, pretty and ill: depression, attention deficit disorder, obsessive-compulsive disorder, either bipolar disorder or borderline personality disorder.

In her 20s, after a more serious suicide attempt, her parents sent her to a residential psychiatric treatment center, and from there to another. It was the treatment of last resort. When she was discharged from the second center last August after slapping another resident, her mother, Elisa Klump, was beside herself.

“I was banging my head against the wall,” the mother said. “What do I do next?” She frantically called support groups, therapy programs, suicide prevention lines, anybody, running down a list of names in a directory of mental health resources. “Finally,” she said, “somebody told me, ‘The person you need to talk to is Carolyn Wolf.’ ”

That call, she said, changed her life and her daughter’s. “Carolyn has given me hope,” she said. “I didn’t know there were people like her out there.”

Carolyn Reinach Wolf is not a psychiatrist or a mental health professional, but a lawyer who has carved out what she says is a unique niche, working with families like the Klumps.

One in 17 American adults suffers from a severe mental illness, and the systems into which they are plunged — hospitals, insurance companies, courts, social services — can be fragmented and overwhelming for families to manage. The recent shootings in Newtown, Conn., and Aurora, Colo., have brought attention to the need for intervention to prevent such extreme acts of violence, which are rare. But for the great majority of families watching their loved ones suffer, and often suffering themselves, the struggle can be boundless, with little guidance along the way.

“If you Google ‘mental health lawyer,’ ” said Ms. Wolf, a partner with Abrams & Fensterman, “I’m kinda the only game in town.”

On a recent afternoon, she described in her Midtown office the range of her practice.

“We have been known to pull people out of crack dens,” she said. “I have chased people around hotels all over the city with the N.Y.P.D. and my team to get them to a hospital. I had a case years ago where the person was on his way back from Europe, and the family was very concerned that he was symptomatic. I had security people meet him at J.F.K.”

Many lawyers work with mentally ill people or their families, but Ron Honberg, the national director of policy and legal affairs for the National Alliance on Mental Illness, said he did not know of another lawyer who did what Ms. Wolf does: providing families with a team of psychiatrists, social workers, case managers, life coaches, security guards and others, and then coordinating their services. It can be a lifeline — for people who can afford it, Mr. Honberg said. “Otherwise, families have to do this on their own,” he said. “It’s a 24-hour, 7-day-a-week job, and for some families it never ends.”

Many of Ms. Wolf’s clients declined to be interviewed for this article, but the few who spoke offered an unusual window on the arcane twists and turns of the mental health care system, even for families with money. Their stories illustrate how fraught and sometimes blind such a journey can be.

One rainy morning last month, Lance Sheena, 29, sat with his mother in the spacious family room of her Long Island home. Mr. Sheena was puffy-eyed and sporadically inattentive; the previous night, at the group home where he has been living since late last summer, another resident had been screaming incoherently and was taken away by the police. His mother, Susan Sheena, eased delicately into the family story.

“I don’t talk to a lot of people because they don’t get it,” Ms. Sheena said. “They mean well, but they don’t get it unless they’ve been through a similar experience. And anytime something comes up, like the shooting in Newtown, right away it goes to the mentally ill. And you think, maybe we shouldn’t be so public about this, because people are going to be afraid of us and Lance. It’s a big concern.”

Her son cut her off. “Are you comparing me to the guy that shot those people?”

“No, I’m saying that anytime there’s a shooting, like in Aurora, that’s when these things come out in the news.”

“Did you really just compare me to that guy?”

“No, I didn’t compare you.”

“Then what did you say?”

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Boeing 787 Completes Test Flight

A Boeing 787 test plane flew for more than two hours on Saturday to gather information about the problems with the batteries that led to a worldwide grounding of the new jets more than three weeks ago.

The flight was the first since the Federal Aviation Administration gave Boeing permission on Thursday to conduct in-flight tests. Federal investigators and the company are trying to determine what caused one of the new lithium-ion batteries to catch fire and how to fix the problems.

The plane took off from Boeing Field in Seattle heading mostly east and then looped around to the south before flying back past the airport to the west. It covered about 900 miles and landed at 2:51 p.m. Pacific time.

Marc R. Birtel, a Boeing spokesman, said the flight was conducted to monitor the performance of the plane’s batteries. He said the crew, which included 13 pilots and test personnel, said the flight was uneventful.

He said special equipment let the crew check status messages involving the batteries and their chargers, as well as data about battery temperature and voltage.

FlightAware, an aviation data provider, said the jet reached 36,000 feet. Its speed ranged from 435 to 626 miles per hour.

All 50 of the 787s delivered so far were grounded after a battery on one of the jets caught fire at a Boston airport on Jan. 7 and another made an emergency landing in Japan with smoke coming from the battery.

The new 787s are the most technically advanced commercial airplanes, and Boeing has a lot riding on their success. Half of the planes’ structural parts are made of lightweight carbon composites to save fuel.

Boeing also decided to switch from conventional nickel cadmium batteries to the lighter lithium-ion ones. But they are more volatile, and federal investigators said Thursday that Boeing had underestimated the risks.

The F.A.A. has set strict operating conditions on the test flights. The flights are expected to resume early this week, Mr. Birtel said.

Battery experts have said it could take weeks for Boeing to fix the problems.

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