Former Chicago businessman gets 14 years in terror case

Throughout Thursday's sentencing, Tahawwur Rana's children appeared nervous, his college student son bouncing his leg rapidly and his daughter, a high schooler, leaning forward with her hands clasped tightly.

After all, their father, a former doctor and businessman who was convicted in one of Chicago's most significant terrorism cases, now faced up to 30 years in prison for aiding and abetting a plot to slay and behead Danish newspaper staffers because of cartoons the paper published of the Prophet Muhammad. Rana also had been convicted of providing support to Lashkar-e-Taiba, a Pakistani terrorist organization.

But at the end of the 90-minute hearing, the brother and sister left the crowded courtroom appearing much relieved — their faces visibly softened — after U.S. District Judge Harry Leinenweber sentenced Rana to 14 years in prison, a little less than half of the maximum.

After court, Rana's attorneys expressed satisfaction with the sentence after arguments from federal prosecutors that Rana, 52, should serve the full 30-year term.

"I thought we had the law on our side, frankly," said Rana's attorney, Patrick Blegen. "But obviously it's a scary proposition when the government asks for such a lengthy sentence. And his family was very concerned."

Rana's trial drew international media attention because he also was charged with supporting Lashkar's terrorist attacks in 2008 that killed more than 160 people in Mumbai, India's largest city. Rana was acquitted, however, of those charges.

David Coleman Headley, Rana's childhood friend who pleaded guilty in both the Danish and Mumbai cases, was the government's star witness at the three-week trial. Headley's testimony about the inner workings of Lashkar provided a rare insight into an international terrorist network. He faces up to life in prison when he is sentenced next week.

At trial, evidence showed that Rana supported the Danish plot by letting Headley pose as an employee of Rana's Far North Side immigration business while Headley scouted the Jyllands-Posten newspaper in Copenhagen in advance of the attack. The plot was never carried out.

Rana, a Pakistan native, immigrated to the United States from Canada. He worked as a doctor before settling into Chicago, where he set up several businesses and raised three children with his wife. She did not attend Thursday's sentencing because immigration officials stopped her earlier this month when she tried to re-enter the U.S. after a family trip to Canada, according to Rana's lawyers.

At the hearing, the defense reiterated its position at trial that Rana had been drawn into the plot by a more conniving Headley.

But the sentencing also turned on whether Rana's plotting constituted an act of terrorism against the Danish government. That would have required a stiffer penalty under federal sentencing guidelines.

Assistant U.S. Attorney Daniel Collins argued for the so-called terror enhancement, saying that in statements to authorities after his arrest, Rana admitted supporting Lashkar as well as knowing that the terrorist group had targeted India in the Mumbai attack.

As for the other scheme, Collins said the plotters hoped to draw the Danish forces into a "fight to the death" after storming the newspaper and planned to make "martyr videos."

"It was not just the newspaper," Collins told the judge. "It was much broader."

But Rana's attorney disagreed, saying evidence at trial showed that Rana wanted to punish only the staff of the newspaper for cartoons that had been deemed offensive to Muslims.

Leinenweber ultimately rejected the government's argument and lowered the maximum faced by Rana to 14 years under the federal sentencing guidelines, leading Collins to make one further attempt at convincing the judge to sentence Rana to the maximum 30 years in prison.

"Defendants who want to think they can avoid detection by sitting at a safe distance need to understand there will be significant penalties when they are caught," the prosecutor said.

Blegen argued for mercy by insisting that Rana's crimes were an aberration for a man who has spent most of his life helping others and raising children who are all in school with plans to contribute to society — a sharp contrast to Headley, who testified at trial about teaching military drills to his young child at city parks.

In the end, Leinenweber noted Rana's seemingly contrasting personalities — an intelligent man convicted in a "dastardly" plot to behead a newspaper staff — and settled on 14 years in prison.

"This is about as serious as it gets," the judge said. "It only would have been more serious if it had been carried out."

asweeney@tribune.com

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Algeria ends desert siege, but dozens killed

ALGIERS (Reuters) - Algerian forces stormed a desert gas complex to free hundreds of hostages but 30, including several Westerners, were killed in the assault along with at least 11 of their Islamist captors, an Algerian security source told Reuters.

Western leaders whose compatriots were being held did little to disguise their irritation at being kept in the dark by Algeria before the raid - and over its bloody outcome. French, British and Japanese staff were among the dead, the source said.

An Irish engineer who survived said he saw four jeeps full of hostages blown up by Algerian troops whose commanders said they moved in about 30 hours after the siege began because the gunmen had demanded to be allowed to take their captives abroad.

And while a crisis has ended that posed a serious dilemma for Paris and its allies as French troops attacked the hostage-takers' al Qaeda allies in neighboring Mali, it left question marks over the ability of OPEC-member Algeria to protect vital energy resources and strained its relations with Western powers.

Two Japanese, two Britons and a French national were among at least seven foreigners killed, the source told Reuters. Eight dead hostages were Algerian. The nationalities of the rest, as well as of perhaps dozens more who escaped, were unclear. Some 600 local Algerian workers, less well guarded, survived.

Fourteen Japanese were among those still unaccounted for by the early hours of Friday, their Japanese employer said.

Japan's Prime Minister Shinzo Abe has cancelled part of his trip in Southeast Asia, his first overseas trip since taking office, and is considering flying home early due to the hostage crisis, Japan's top government spokesman said on Friday.

"The action of Algerian forces was regrettable," said Japan's Chief Cabinet Secretary Yoshihide Suga, adding Tokyo had not been informed of the operation in advance.

Americans, Norwegians, Romanians and an Austrian have also been mentioned by their governments as having been captured by the militants who called themselves the "Battalion of Blood" and had demanded France end its week-old offensive in Mali.

Underlining the view of African and Western leaders that they face a multinational Islamist insurgency across the Sahara - a conflict that prompted France to send hundreds of troops to Mali last week - the official source said only two of the 11 dead militants were Algerian, including the squad's leader.

The bodies of three Egyptians, two Tunisians, two Libyans, a Malian and a Frenchman were found, the security source said.

The group had claimed to have dozens of guerrillas on site and it was unclear whether any militants had managed to escape.

The overall commander, Algerian officials said, was Mokhtar Belmokhtar, a veteran of Afghanistan in the 1980s and Algeria's bloody civil war of the 1990s. He appears not to have been present and has now risen in stature among a host of Saharan Islamists, flush with arms and fighters from chaotic Libya, whom Western powers fear could spread violence far beyond the desert.

"NO TO BLACKMAIL"

Algeria's government spokesman made clear the leadership in Algiers remains implacably at odds with Islamist guerrillas who remain at large in the south years after the civil war in which some 200,000 people died. Communication Minister Mohamed Said repeated their refusal ever to negotiate with hostage-takers.

"We say that in the face of terrorism, yesterday as today as tomorrow, there will be no negotiation, no blackmail, no respite in the struggle against terrorism," he told APS news agency.

British Prime Minister David Cameron, who warned people to prepare for bad news and who cancelled a major policy speech on Friday to deal with the situation, said through a spokesman that he would have liked Algeria to have consulted before the raid.

A Briton and an Algerian had also been killed on Wednesday.

The prime minister of Norway, whose state energy company Statoil runs the Tigantourine gas field with Britain's BP and Algeria's national oil company, said he too was not informed.

U.S. officials had no clear information on the fate of Americans, though a U.S. military drone had flown over the area. Washington, like its European allies, has endorsed France's move to protect the Malian capital by mounting air strikes last week and now sending 1,400 ground troops to attack Islamist rebels.

A U.S. official said on Thursday it would provide transport aircraft to help France with a mission whose vital importance, President Francois Hollande said, was demonstrated by the attack in Algeria. Some fear, however, that going on the offensive in the remote region could provoke more bloodshed closer to home.

The apparent ease with which the fighters swooped in from the dunes to take control of an important energy facility, which produces some 10 percent of the natural gas on which Algeria depends for its export income, has raised questions, over the value of security measures that are outwardly draconian.

Foreign firms were pulling non-essential staff out of the country, which has recovered stability only in recent years and whose ruling establishment, heirs to fighters who ended French rule 50 years ago, has resisted demands for reform and political freedoms of the kind that swept North Africa in the Arab Spring.

"The embarrassment for the government is great," said Azzedine Layachi, an Algerian political scientist at New York's St John's University. "The heart of Algeria's economy is in the south. where the oil and gas fields are. For this group to have attacked there, in spite of tremendous security, is remarkable."

"KILL INFIDELS"

A local man who had escaped from the facility told Reuters the militants appeared to have inside knowledge of the layout of the complex, supporting the view of security experts that their raid was long-planned, even if the Mali war provided a motive.

"The terrorists told us at the very start that they would not hurt Muslims but were only interested in the Christians and infidels," Abdelkader, 53, said by telephone from his home in the nearby town of In Amenas. "'We will kill them,' they said."

Algiers, whose leaders have long had frosty relations with the former colonial power France and other Western countries, may have some explaining to do over its tactics in putting an end to a hostage crisis whose scale was comparable to few in recent decades bar those involving Chechen militants in Russia.

Government spokesman Said sounded unapologetic, however: "When the terrorist group insisted on leaving the facility, taking the foreign hostages with them to neighboring states, the order was issued to special units to attack the position where the terrorists were entrenched," he told state news agency APS, which said some 600 local workers were freed.

The militants said earlier they had 41 foreign hostages.

"ARMY BLASTED HOSTAGES"

Stephen McFaul, an electrical engineer, told his family in Northern Ireland after the operation that he narrowly escaped death, first when bound and gagged by the gunmen who fastened explosives around the hostages' necks and then on Thursday when he was in a convoy of five vehicles driving across the complex.

"(The gunmen) were moving five jeeploads of hostages from one part of the compound," his brother Brian McFaul said. "At that stage, they were intercepted by the Algerian army.

"The army bombed four out of five of the trucks and four of them were destroyed ... He presumed everyone else in the other trucks was killed ... The truck my brother was in crashed and at that stage Stephen was able to make a break for his freedom."

McFaul said it was unclear whether the vehicles had been struck by missiles fired from helicopters or by ground forces.

The attack in Algeria did not stop France from pressing on with its campaign in Mali. It said on Thursday it now had 1,400 troops on the ground there, and combat was under way against the rebels that it first began targeting from the air last week.

"What is happening in Algeria justifies all the more the decision I made in the name of France to intervene in Mali in line with the U.N. charter," Hollande said on Thursday.

The French action last week came as a surprise but received widespread public international support. Neighbouring African countries planning to provide ground troops for a U.N. force by September have said they will move faster to deploy them.

(Additional reporting by Ali Abdelatti in Cairo, Eamonn Mallie in Belfast, Gwladys Fouche in Oslo, Mohammed Abbas in London and Padraic Halpin and Conor Humprhies in Dublin; Writing by Alastair Macdonald; Editing by Peter Millership and Michael Perry)

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Asian shares consolidate, caution ahead of Chinese data

TOKYO (Reuters) - Asian shares eked out modest gains Thursday, consolidating amid better-than-expected U.S. earnings but demand was capped by caution ahead of Chinese data on Friday.

The MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> added 0.1 percent, after falling in the past two sessions, pulled higher by a surge in Australian shares <.axjo>, which rose 1 percent to a 20-month high.

Australian employment surprisingly contracted by 5,500 in December, bolstering the odds for another interest rate cut. The prospect of further policy easing boosted local shares but sent the Australian dollar down to session lows of $1.0534 from $1.0560 before the data.

Analysts said the data came against a fairly positive global backdrop.

"There's a growing sentiment among investors that international risks have been significantly reduced, particularly after the U.S. made a start on its fiscal negotiations," said Ric Spooner, market strategist at CMC Markets in Sydney.

World stock markets ended flat on Wednesday with the banking sector rising as earnings from Goldman Sachs nearly tripled and JPMorgan Chase's fourth-quarter net income jumped 53 percent and earnings for 2012 set a record.

Investors will now turn to economic reports from China on Friday, including fourth-quarter GDP, December industrial output, retail sales and house price, which will offer clues on the health of Asia's biggest economy.

Data showing demand for new cars in recession-bound Europe fell to a 17-year low in 2012 reminded investors of the challenges facing the global economy, after the World Bank sharply cut its outlook for world growth this year to 2.4 percent from 3 percent, citing a slow recovery in developed nations.

YEN RESUMES WEAKNESS

The dollar and the euro regained ground against the yen, snapping two days of selling when investors took profits from these currencies' sharp and rapid rises against the Japanese currency since November.

Traders expect the yen to remain on a weakening trend amid expectations for bolder monetary easing measures from the Bank of Japan as part of the new government's push to drive Japan out of years of deflation and economic slump.

Japan's benchmark Nikkei average <.n225> inched up 0.2 percent, after tumbling 2.6 percent for its largest daily decline in eight months on Wednesday. The Nikkei hit a 32-month high on Tuesday as the yen's slump to multi-year lows against the dollar and the euro bolstered exporters on improving earnings outlook. <.t/>

The dollar was up 0.1 percent to 88.50 yen, off its peak since June 2010 of 89.67 touched on Monday, while the euro climbed 0.3 percent to 117.75 yen, after surging to its highest since May 2011 of 120.13 yen on Monday.

Anxiety about a possible protracted fight in Washington over raising the federal borrowing limit pushed the five-year cost to insure against a U.S. default up to 44 basis points on Wednesday, the highest since August 2011 during the first debt ceiling battle between U.S. President Barack Obama and Republican lawmakers.

The euro was up 0.1 percent to $1.3306 against the dollar, after reaching an 11-month high of $1.3404 on Monday.

COMMODITIES SEEN RISING

Reduced concerns over the euro zone debt problems, relatively more solid global economic fundamentals than last year and China's moderate recovery suggest there are buying opportunities for shares in cyclically dependant sectors and economies including Japan, Philip Poole, Head of Strategy at HSBC Global Asset Management, told a seminar in Tokyo this week.

"Recovery will feed through into 2013, but China won't go back to pre-crisis (of 2008) levels of growth of 10 percent," Poole said, adding that growth was likely to be 7-8 percent in 2013, a level investors now need to get used to.

"Cyclically sensitive sectors look relatively cheap in emerging countries and developed countries," while defensives were less attractive given their relative outperformance in 2012 under the more stressed financial environment, Poole said.

Another sector likely seen getting a boost from the reduced risk environment is commodities.

"Investment focus for 2013 is shifting to economically sensitive areas as global recovery takes place, boosting commodities prices," said Naohiro Niimura, a partner at research and consulting firm Market Risk Advisory.

The rally in platinum prices to 3-month highs this week, regaining its premium over gold for the first time since March 2012, is an indication of investors turning more proactive about taking risks, he said.

U.S. crude was down 0.2 percent at $94.05 a barrel while Brent was steady around $109.64.

(Additional reporting by Thuy Ong in Sydney; Editing by Shri Navaratnam)

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Story of Te'o girlfriend death apparently a hoax

SOUTH BEND, Ind. (AP) — The wrenching story of Notre Dame football star Manti Te'o's girlfriend dying of leukemia — a loss he said inspired him to play his best all the way to the BCS championship — was dismissed by the school as a hoax perpetrated against the linebacker.

Notre Dame said Wednesday night it believes Te'o was duped into an online relationship with a woman whose "death" was then faked by the perpetrators of the hoax.

The school made the statement following a lengthy story by Deadspin.com, saying it could find no record that Lennay Kekua ever existed.

"This is incredibly embarrassing to talk about, but over an extended period of time, I developed an emotional relationship with a woman I met online," Te'o said in a statement. "We maintained what I thought to be an authentic relationship by communicating frequently online and on the phone, and I grew to care deeply about her. "

However, he stopped short of saying he had ever met her in person or correcting reports that said he had, though he did on numerous occasions talk about how special the relationship was to him.

"To realize that I was the victim of what was apparently someone's sick joke and constant lies was, and is, painful and humiliating," he said.

"In retrospect, I obviously should have been much more cautious. If anything good comes of this, I hope it is that others will be far more guarded when they engage with people online than I was."

Notre Dame athletic director Jack Swarbrick said at a news conference that Te'o told coaches on Dec. 26 he had received a call while at an awards ceremony earlier in the month from Kekua's phone number.

"When he answered it, it was a person whose voice sounded like the same person he had talked to, who told him that she was, in fact, not dead. Manti was very unnerved by that, as you might imagine," Swarbrick said.

Swarbrick said the school hired investigators and their report indicated those behind the hoax were in contact with each other, discussing what they were doing.

The investigators "were able to discover online chatter among the perpetrators that was certainly the ultimate proof of this, the joy they were taking," Swarbrick said. "The casualness among themselves they were talking about what they accomplished."

Swarbrick said for Te'o "the pain was real."

"The grief was real. The affection was real," he said. "That's the nature of this sad, cruel game."

Swarbrick said Notre Dame did not take the matter to the police, saying that the school left it up to Te'o and his family to do so. He added that Notre Dame did not plan to release the findings of its investigation.

"We had no idea of motive, and that was really significant to us. ... Was somebody trying to create an NCAA violation at the core of this? Was there somebody trying to impact the outcome of football games by manipulating the emotions of a key player? Was there an extortion request coming? When you match the lack of sort of detail we lacked until we got some help investigating it with the risk involved, it was clear to me until we knew more we had to just to continue to work to try to gather the facts," Swarbrick said.

The Deadspin report changed all that.

Friends and relatives of Ronaiah Tuiasosopo, a high school classmate of Te'o, told Deadspin they believe he created Kekua. She does not have a death certificate, Deadspin reported. Stanford, where she reportedly went to school, has no record of anybody by that name, the website said. Attempts by The Associated Press to reach Tuiasosopo by telephone were unsuccessful.

Deadspin said a record search produced no obituary or funeral announcement. There is no record of her birth in the news.

There are a few Twitter and Instagram accounts registered to Lennay Kekua, but the website reported photographs identified as Kekua online and in TV news reports are pictures from the social-media accounts of a 22-year-old California woman who is not named Lennay Kekua, the website reported.

Still, Swarbrick said, "Nothing about what I have learned has shaken my faith in Manti Te'o one iota."

Te'o talked freely about their relationship after her supposed death and how much she meant to him.

In a story that appeared in The South Bend Tribune on Oct. 12, Manti's father, Brian, recounted an anecdote about how his son and Kekua met after Notre Dame had played at Stanford in 2009. Brian Te'o also told the newspaper that Kekua had visited Hawaii and met with his son. Brian Te'o told the AP in an interview in October that he and his wife had never met Manti's girlfriend but they had hoped to at the Wake Forest game in November. The father said he believed the relationship was just beginning to get serious when she died.

The Tribune released a statement saying: "At the Tribune, we are as stunned by these revelations as everyone else. Indeed, this season we reported the story of this fake girlfriend and her death as details were given to us by Te'o, members of his family and his coaches at Notre Dame."

The week before Notre Dame played Michigan State on Sept. 15, coach Brian Kelly told reporters when asked that Te'o's grandmother and a friend had died. Te'o didn't miss the game. He said Kekua had told him not to miss a game if she died. Te'o turned in one of his best performances of the season in the 20-3 victory in East Lansing, and his playing through heartache became a prominent theme during the Irish's undefeated regular season.

"My family and my girlfriend's family have received so much love and support from the Notre Dame family," he said after that game. "Michigan State fans showed some love. And it goes to show that people understand that football is just a game, and it's a game that we play, and we have fun doing it. But at the end of the day, what matters is the people who are around you, and family. I appreciate all the love and support that everybody's given my family and my girlfriend's family."

He was asked again about his girlfriend on Jan. 3 prior to the BCS title game, saying: "This team is very special to me, and the guys on it have always been there for me, through the good times and the bad times. I rarely have a quiet time to myself because I always have somebody calling me, asking, 'Do you want to go to the movies?' Coach is always calling me asking me, 'Are you OK? Do you need anything?'"

Te'o was a Heisman Trophy finalist, finishing second in the voting, and led Notre Dame to its first appearance in the BCS championship. His widely reported story was among the most heartwarming of the season.

"It further pains me that the grief I felt and the sympathies expressed to me at the time of my grandmother's death in September were in any way deepened by what I believed to be another significant loss in my life," Te'o said in his statement.

"I am enormously grateful for the support of my family, friends and Notre Dame fans throughout this year. To think that I shared with them my happiness about my relationship and details that I thought to be true about her just makes me sick. I hope that people can understand how trying and confusing this whole experience has been."

Te'o and the Irish lost the title game to Alabama, 42-14 on Jan. 7. He has graduated and was set to begin preparing for the NFL combine and draft at the IMG Academy in Bradenton, Fla., this week.

"Fortunately, I have many wonderful things in my life," he said in his statement, "and I'm looking forward to putting this painful experience behind me as I focus on preparing for the NFL Draft."

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‘Star Wars’ Empire Strikes Back at Obama’s Death Star Refusal

The refusal of President Barack Obama‘s Administration to build a planet-destroying Death Star from the “Star Wars” films is both short-sighted and cowardly, according to the Galactic Empire.

In a statement posted to the official “Star Wars” website Monday (Jan. 15), the fictional Empire — the totalitarian regime that built the Death Star bases — touted its military might in the wake of the White House‘s negative response to a petition to begin building a real-life Death Star by 2016.

“The overwhelming military superiority of the Galactic Empire has been confirmed once again by the recent announcement by the President of the United States that his nation would not attempt to build a Death Star, despite the bellicose demands of the people of his tiny, aggressive planet,” Empire officials said in the joke letter.

On Friday (Jan. 11), the White House issued a statement explaining why the Obama Administration could not support any effort to build a real Death Star. Chief among the reasons: the project’s estimated cost of more than $ 850 quadrillion and the fact that the Obama Administration does not support destroying other planets.

The Empire’s three-paragraph response comes complete with a quote from a fictional member of the Galactic Empire ridiculing the way the president handled the request.

“‘The costs of construction they cited were ridiculously overestimated, though I suppose we must keep in mind that this minuscule planet does not have our massive means of production,’ added Admiral Conan Motti of the Imperial Starfleet.”

You can follow SPACE.com staff writer Miriam Kramer on Twitter @mirikramer. Follow SPACE.com on Twitter @Spacedotcom. We’re also on Facebook & Google+. 

Copyright 2013 SPACE.com, a TechMediaNetwork company. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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Scientology ad crossed the line

The Church of Scientology is also at fault for thinking the advertorial would survive The Atlantic readers' scrutiny, Ian Schafer says.

STORY HIGHLIGHTS

• The Atlantic published and pulled a sponsored Scientology "story"


• Ian Schafer: On several levels, the ad was a mistake


• He says the content was heavy-handed and comments were being moderated


• Schafer: Experimenting to raise revenue makes sense, but standards should be clear

Editor's note: Ian Schafer is the founder and CEO of a digital advertising agency, Deep Focus, and the alter ego of @invisibleobama. You can read his rants on his blog at ianschafer.com.

(CNN) -- "The Atlantic is America's leading destination for brave thinking and bold ideas that matter. The Atlantic engages its print, online, and live audiences with breakthrough insights into the worlds of politics, business, the arts, and culture. With exceptional talent deployed against the world's most important and intriguing topics, The Atlantic is the source of opinion, commentary, and analysis for America's most influential individuals who wish to be challenged, informed, and entertained." -- The Atlantic 2013 media kit for advertisers

On Monday, The Atlantic published -- and then pulled -- a story titled "David Miscavige Leads Scientology to Milestone Year." This "story" went on to feature the growth of Scientology in 2012.

Ian Schafer

Any regular reader of The Atlantic's content would immediately do a double-take upon seeing that kind of headline, much less the heavy-handed text below it, shamelessly plugging how well Scientology's "ecclesiastical leader" Miscavige has done in "leading a renaissance for the religion."

This "story" is one of several "advertorials" (a portmanteau of "advertising" and "editorials") that The Atlantic has published online, clearly designated as "Sponsor Content." In other words, "stories" like these aren't real stories. They are ads with a lot of words, which advertisers have paid publications to run on their behalf for decades. You may have seen them in magazines and newspapers as "special advertising sections."

The hope is that because you are already reading the publication, hey, maybe you'll read what the advertiser has to say, too -- instead of the "traditional" ad that they may have otherwise placed on the page that you probably won't remember, or worse, will ignore.

There's nothing wrong with this tactic, ethically, when clearly labeled as "sponsored" or "advertising." But many took umbrage with The Atlantic in this particular case; so many, that The Atlantic responded by pulling the story from its site -- which was the right thing to do -- and by apologizing.

At face value, The Atlantic did the right thing for its business model, which depends upon advertising sales. It sold what they call a "native" ad to a paying advertiser, clearly labeled it as such, without the intention of misleading readers into thinking this was a piece of journalism.

But it still failed on several levels.

The Atlantic defines its readers as "America's most influential individuals who wish to be challenged, informed, and entertained." By that very definition, it is selling "advertorials" to people who are the least likely to take them seriously, especially when heavy-handed. There is a fine line between advertorial and outright advertising copywriting, and this piece crossed it. The Church of Scientology is just as much at fault for thinking this piece would survive The Atlantic readers' intellectual scrutiny. But this isn't even the real issue.

Bad advertising is all around us. And readers' intellectual scrutiny would surely have let the advertorial piece slide without complaints (though snark would be inevitable), as they have in the past, or yes, even possibly ignored it. But here's where The Atlantic crossed another line -- it seemed clear it was moderating the comments beneath the advertorial.

As The Washington Post reported, The Atlantic marketing team was carefully pruning the comments, ensuring that they were predominantly positive, even though many readers were leaving negative comments. So while The Atlantic was publishing clearly labeled advertiser-written content, it was also un-publishing content created by its readers -- the very folks it exists to serve.

It's understandable that The Atlantic would inevitably touch a third rail with any "new" ad format. But what it calls "native advertising" is actually "advertorial." It's not new at all. Touching the third rail in this case is unacceptable.

So what should The Atlantic have done in this situation before it became a situation? For starters, it should have worked more closely with the Church of Scientology to help create a piece of content that wasn't so clearly written as an ad. If the Church of Scientology was not willing to compromise its advertising to be better content, then The Atlantic should not have accepted the advertising. But this is a quality-control issue.

The real failure here was that comments should never have been enabled beneath this sponsored content unless the advertiser was prepared to let them be there, regardless of sentiment.

It's not like Scientology has avoided controversy in the past. The sheer, obvious reason for this advertorial in the first place was to dispel beliefs that Scientology wasn't a recognized religion (hence "ecclesiastical").

Whether The Atlantic felt it was acting in its advertiser's best interest, or the advertiser specifically asked for this to happen, letting it happen at all was a huge mistake, and a betrayal of an implicit contract that should exist between a publication of The Atlantic's stature and its readership.

No matter how laughably "sales-y" a piece of sponsored content might be, the censoring of readership should be the true "third rail," never to be touched.

Going forward, The Atlantic (and any other publication that chooses to run sponsored content) should adopt and clearly communicate an explicit ethics statement regarding advertorials and their corresponding comments. This statement should guide the decisions it makes when working with advertisers, and serve as a filter for the sponsored content it chooses to publish, and what it recommends advertisers submit. It should also prevent readers from being silenced if given a platform at all.

As an advertising professional, I sincerely hope this doesn't spook The Atlantic or any other publication from experimenting with ways to make money. But as a reader, I hope it leads to better ads that reward me for paying attention, rather than muzzle my voice should I choose to interact with the content.

After all, what more could a publication or advertiser ask for than for content to be so interesting that someone actually would want to comment on (or better, share) it?

(Correction: An earlier version of this article incorrectly said native advertising accounts for 59% of the Atlantic's ad revenue. Digital advertising, of which native advertising is a part, accounts for 59% of The Atlantic's overall revenue, according to the company.)

Follow @CNNOpinion on Twitter.

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The opinions expressed in this commentary are solely those of Ian Schafer.

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FAA grounds Dreamliners in U.S.

Federal officials say they are temporarily grounding Boeing's 787 Dreamliners until the risk of possible battery fires is addressed. (Jan. 16)

With its new plane ordered to stay on the ground, Boeing Co. confronts a full-fledged crisis as it struggles to regain the confidence of passengers and the airline customers who stood by the 787 Dreamliner during years of cost overruns and delivery delays.

A second major incident involving "a potential battery fire risk'' prompted the Federal Aviation Administration on Wednesday to temporarily ground all 787s operated by U.S. carriers until it is determined that the lithium-ion batteries on board are safe.

The order affects United Airlines, which is the first U.S. customer. The FAA gave no indication how soon the plane could resume flying.

The decision came the same day Japanese airlines grounded their 787s after an emergency landing and five days after the FAA and U.S. Transportation Secretary Ray LaHood declared that the flying public is safe on Dreamliners. When it offered those assurances Friday, however, the FAA also announced a comprehensive review of the 787's design, manufacture and assembly.

The grounding represents a significant setback for Chicago-based Boeing, which is marketing the fuel-efficient, mainly carbon-composite jetliner as a vision of the future of commercial passenger aviation. The development of the plane was marred by long production and delivery delays, but it is selling well and has customers around the world.

"We stand behind its overall integrity. We will be taking every necessary step in the coming days to assure our customers and the traveling public of the 787's safety and to return the airplanes to service," Jim McNerney, Boeing's chairman and chief executive, said in a statement. He said Boeing is working with the FAA to find answers as quickly as possible.

Chicago-based United Airlines has six 787s, but it has been flying only one on flights between O'Hare International Airport and Houston. The airline said Wednesday night that it will accommodate customers on other planes. The domestic 787 flights were to end in late March, when United's first 787s were to begin serving international routes. 

United said it "will work closely with the FAA and Boeing on the technical review as we work toward restoring 787 service."

Foreign carriers are not affected by the FAA order, but LOT Polish Airlines canceled its inaugural flight celebration at O'Hare on Wednesday night, even before the flight landed from Warsaw.

"We just think it would be inappropriate to go ahead with the activities," said Frank Joost, regional sales director of the Americas for LOT. He described the FAA grounding of 787 flights as a "surprise."

LOT also canceled the Dreamliner's return flight to Warsaw. Passengers hoping to depart on the 9:55 p.m. flight said they were disappointed. Many were rebooked on Lufthansa through Munich.

Suzy Zaborek, 27, of Chicago was at Chicago O'Hare on Wednesday night waiting for her father to arrive from Poland aboard the 787. He came home early specifically to ride on the inaugural flight.

Zaborek had not been following the Dreamliner woes in recent weeks and the dramatic groundings on Wednesday.

"I'm glad I didn't know because I wouldn't have let him get on on of those," she said.

The FAA decision to ground all U.S.-registered 787s was the direct result of an in-flight incident involving a battery earlier in the day in Japan, FAA officials said. It followed another 787 battery fire that occurred Jan. 7 on the ground in Boston.

Both failures resulted in the release of flammable materials, heat damage, smoke and the potential for fire in the electrical compartments, the FAA said.

"Before further flight, operators of U.S.-registered Boeing 787 aircraft must demonstrate to the FAA that the batteries are safe," the regulatory agency said. The statement said the FAA will work with Boeing and airlines "to develop a corrective action plan to allow the U.S. 787 fleet to resume operations as quickly and safely as possible."

The FAA said it took drastic action because it determined that battery failures are "likely to exist or develop" in other planes.

Lithium-ion batteries can catch fire if they are overcharged, and the fires are difficult to extinguish, Boeing has previously said. Still, lithium-ion is the right choice for the 787, Boeing officials said.

Earlier Wednesday, Japan's two largest airlines grounded their fleets of 787s after one of the jets made an emergency landing and passengers were evacuated via emergency slides.

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Sahara hostage siege turns Mali war global

ALGIERS/BAMAKO (Reuters) - Islamist fighters have opened an international front in Mali's civil war by taking dozens of Western hostages at a gas plant in the Algerian desert just as French troops launched an offensive against rebels in neighboring Mali.

Nearly 24 hours after gunmen stormed the natural gas pumping site and workers' housing before dawn on Wednesday, little was certain beyond a claim by a group calling itself the "Battalion of Blood" that it was holding 41 foreign nationals, including Americans, Japanese and Europeans, at Tigantourine, deep in the Sahara.

British Foreign Secretary William Hague confirmed one Briton had been killed and "a number" of others were being held hostage. Algerian media said an Algerian was killed in the assault. Another local report said a Frenchman had died.

"This is a dangerous and rapidly developing situation," Hague told reporters in Sydney on Thursday, adding Britain's Prime Minister David Cameron had spoken with the Algerian President Abdelaziz Bouteflika.

"We have sent a rapid deployment team from our foreign office in order to reinforce our embassy and consulate staff there. The safety of those involved and their co-workers is our absolutely priority and we will work around the clock to resolve this crisis."

One thing is clear: as a headline-grabbing counterpunch to this week's French buildup in Mali, it presents French President Francois Hollande with a daunting dilemma and spreads fallout from Mali's war against loosely allied bands of al Qaeda-inspired rebels far beyond Africa, challenging Washington and Europe.

A French businessman with employees at the site said the foreigners were bound and under tight guard, while local staff, numbering 150 or more, were held apart and had more freedom.

Led by an Algerian veteran of guerrilla wars in Afghanistan, the group demanded France halt its week-old intervention in Mali, an operation endorsed by Western and African allies who fear that al Qaeda, flush with men and arms from the defeated forces of Libya's Muammar Gaddafi, is building a haven in the desert.

Hollande, who won wide praise for ordering air strikes and sending troops to the former French colony, said little in response. In office for only eight months, he has warned of a long, hard struggle in Mali and now faces a risk of attacks on more French and other Western targets in Africa and beyond.

The Algerian government ruled out negotiating and the United States and other Western governments condemned what they called a terrorist attack on a facility, now shut down, that produces 10 percent of Algeria's gas, much of which is pumped to Europe.

The militants, communicating through established contacts with media in neighboring Mauritania, said they had dozens of men at the base, near the town of In Amenas close to the Libyan border, and that they were armed with mortars and anti-aircraft missiles.

They said they had repelled a raid by Algerian forces after dark on Wednesday. There was no government comment on that. Algerian officials said earlier about 20 gunmen were involved.

LIVES AT RISK

The militants issued no explicit threat but made clear the hostages' lives were at risk: "We hold the Algerian government and the French government and the countries of the hostages fully responsible if our demands are not met and it is up to them to stop the brutal aggression against our people in Mali," read one statement carried by Mauritanian media.

The group also said its fighters had rigged explosives around the site and any attempt to free the hostages would lead to a "tragic end." The large numbers of gunmen and hostages involved pose serious problems for any rescue operation.

Smaller hostage-taking incidents have been common in the Sahara and financial gain plays a part in the actions of groups whose members mingle extremist religious aims with traditional smuggling and other pursuits in the lawless, borderless region.

Algerian Interior Minister Daho Ould Kablia said the raid was led by Mokhtar Belmokhtar, who fought Soviet forces in Afghanistan in the 1980s and recently set up his own group in the Sahara after falling out with other local al Qaeda leaders.

A holy warrior-cum-smuggler dubbed "The Uncatchable" by French intelligence and "Mister Marlboro" by some locals for his illicit cigarette-running business, Belmokhtar's links to those who seized towns across northern Mali last year are unclear.

French media said the militants were also demanding that Algeria, whose government fought a bloody war against Islamists in the 1990s, release dozens of prisoners from its jails.

AMERICANS

The militants said seven Americans were among the 41 foreign hostages - a figure U.S. officials said they could not confirm.

Norwegian energy company Statoil, which operates the gas field in a joint venture with Britain's BP and the Algerian state company Sonatrach, said nine of its Norwegian employees and three of its Algerian staff were being held.

Also reported kidnapped, according to various sources, were five Japanese working for the engineering firm JGC Corp, a French national, an Austrian, an Irishman and the Britons.

U.S. Defense Secretary Leon Panetta said: "I want to assure the American people that the United States will take all necessary and proper steps that are required to deal with this situation."

He said he lacked firm information on whether there were links to the situation in Mali. Analysts pointed to shifting alliances and rivalries among Islamists in the region to suggest the hostage-takers may have a range of motives.

In their own statements, they condemned Algeria's secularist government for "betraying" its predecessors in the bloody anti-colonial war against French rule half a century ago by letting French warplanes fly over its territory to Mali. They also accused Algeria of shutting its border to Malian refugees.

Panetta said Washington was still studying legal and other issues before providing more help to France in the war in Mali.

Hollande has called for international support against rebels who France says pose a threat to Africa and the West, and admits it faces a long struggle against well-equipped fighters who seized Timbuktu and other oasis towns in northern Mali and have imposed Islamic law, including public amputations and beheading.

Islamists have warned Hollande that he has "opened the gates of hell" for all French citizens.

Some of those held at the facility, about 1,300 km (800 miles) inland, had sporadic contact with the outside world.

The head of a French catering company said he had information from a manager who supervises some 150 Algerian employees at the site. Regis Arnoux of CIS Catering told BFM television the local staff was being prevented from leaving but was otherwise free to move around inside and keep on working.

"The Westerners are kept in a separate wing of the base," Arnoux said. "They are tied up and are being filmed. Electricity is cut off, and mobile phones have no charge.

"Direct action seems very difficult. ... Algerian officials have told the French authorities as well as BP that they have the situation under control and do not need their assistance."

MALI OFFENSIVE

French army chief Edouard Guillaud said ground forces were stepping up their operation to engage directly "within hours" the alliance of Islamist fighters, grouping al Qaeda's North African wing AQIM and Mali's home-grown Ansar Dine and MUJWA.

West African military chiefs said the French would soon be supported by about 2,000 troops from Nigeria, Chad, Niger and other states - part of a U.N.-mandated deployment that had been expected to start in September before Hollande intervened.

Chad's foreign minister, Moussa Faki Mahamat, told Radio France International his country alone would send 2,000 troops, suggesting plans for the regional force were already growing.

In Mali, residents said a column of some 30 French Sagaie armored vehicles had set off toward rebel positions from the town of Niono, 300 km (190 miles) from the capital, Bamako.

A Malian military source said French special forces units were taking part in the operation. Guillaud said France's strikes, involving Rafale and Mirage jet fighters, were being hampered because militants were sheltering among civilians.

Many inhabitants of northern Mali have welcomed the French attacks, although some also fear being caught in the cross-fire.

Hollande said on Tuesday that French forces would remain in Mali until stability returned to the West African nation.

The conflict, in a landlocked state of 15 million twice the size of France, has displaced an estimated 30,000 people and raised concerns across mostly Muslim West Africa of a radicalization of Islam in the region.

But many who have lived for many months under harsh and violent Islamist rule said they welcomed the French.

"There is a great hope," one man said from Timbuktu, where he said Islamist fighters were trying to blend into civilian neighborhoods. "We hope that the city will be freed soon."

(Additional reporting by Pascal Fletcher and Andrew Callus in London, Balazs Koranyi in Oslo, Laurent Prieur in Nouakchott, Daniel Flynn in Dakar, John Irish, Catherine Bremer and Nick Vinocur in Paris, David Alexander in Rome, Andrew Quinn in Washington and Jane Wardell in Sydney; Writing by Alastair Macdonald; Editing by Peter Cooney and Michael Perry)

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Anti-doping officials want Armstrong under oath

A televised confession by Lance Armstrong isn't enough.

Anti-doping officials want the disgraced cyclist to admit his guilt under oath before considering whether to lift a lifetime ban clouding his future as a competitive athlete. That was seconded by at least one former teammate whom Armstrong pushed aside on his way to the top of the Tour de France podium.

"Lance knows everything that happened," Frankie Andreu told The Associated Press on Tuesday. "He's the one who knows who did what because he was the ringleader. It's up to him how much he wants to expose."

Armstrong has been in conversations with U.S. Anti-Doping Agency officials, touching off speculation that he may be willing to cooperate with authorities there and name names.

Interviewer Oprah Winfrey didn't say if the subject was broached during the taping Monday at a downtown Austin hotel. In an appearance on "CBS This Morning," she declined to give details of what Armstrong told her, but said she was "mesmerized and riveted by some of his answers."

Asked whether the disgraced cyclist appeared genuinely contrite after a decade of fierce denials, Winfrey replied, "I felt that he was thoughtful, I thought that he was serious, I thought that he certainly had prepared for this moment. I would say that he met the moment."

She was promoting what has become a two-part special, Thursday and Friday, on her OWN network.

Around the same time, World Anti-Doping Agency officials issued a statement saying nothing short of "a full confession under oath" would cause them to reconsider Armstrong's lifetime ban from sanctioned events.

The International Cycling Union also urged Armstrong to tell his story to an independent commission it has set up to examine claims that the sport's governing body hid suspicious samples from the cyclist, accepted financial donations from him and helped him avoid detection in doping tests.

The ban was only one of several penalties handed to Armstrong after a scathing, 1,000-page report by USADA last year. The cyclist was also stripped of his seven Tour de France titles, lost nearly all of his endorsements and was forced to cut ties with the Livestrong cancer charity he founded in 1997.

The report portrayed Armstrong as the mastermind of a long-running scheme that employed steroids, blood boosters such as EPO, and a range of other performance-enhancers to dominate the tour. It included revealing testimony from 11 former teammates, including Andreu and his wife, Betsy.

"A lot of it was news and shocking to me," Andreu said. "I am sure it's shocking to the world. There's been signs leading up to this moment for a long time. For my wife and I, we've been attacked and ripped apart by Lance and all of his people, and all his supporters repeatedly for a long time. I just wish they wouldn't have been so blind and opened up their eyes earlier to all the signs that indicated there was deception there, so that we wouldn't have had to suffer as much.

"And it's not only us," he added, "he's ruined a lot of people lives."

Armstrong was believed to have left for Hawaii. The street outside his Spanish-style villa on Austin's west side was quiet the day after international TV crews gathered there hoping to catch a glimpse of him. Nearby, members of his legal team mapped out a strategy on how to handle at least two pending lawsuits against Armstrong, and possibly a third.

The AP reported earlier Tuesday that Justice Department officials were likely to join a whistleblower lawsuit against Armstrong by former teammate Floyd Landis, citing a source who works outside the government and requested anonymity because he was not authorized to speak on the record about the matter.

The lawsuit by Landis, who was stripped of the 2006 Tour de France title after testing positive, alleges that Armstrong defrauded the U.S. government by repeatedly denying he used performance-enhancing drugs. The deadline to join the False Claims Act lawsuit, which could require Armstrong to return substantial sponsorship fees and pay a hefty penalty, is Thursday.

Landis is hardly the only one seeking money back from Armstrong.

During his long reign as cycling champion, Armstrong scolded some critics in public, didn't hesitate to punish outspoken riders during the race, and waged legal battles against still others in court.

The London-based Sunday Times has already filed a lawsuit to recover about $500,000 it paid Armstrong to settle a libel case, and Dallas-based SCA Promotions, which tried to deny him a promised bonus for a Tour de France win, has threatened to bring another lawsuit seeking to recover more than $7.5 million awarded by an arbitration panel.

In Australia, the government of the state of South Australia said it will seek the repayment of several million dollars in appearance fees paid to Armstrong for competing in the Tour Down Under in 2009, 2010 and 2011.

"We'd be more than happy for Mr. Armstrong to make any repayment of monies to us," South Australia Premier Jay Weatherill said.

___

Litke reported from Chicago, Vertuno from Austin, Texas. Pete Yost in Washington and John L. Mone in Dearborn, Mich., also contributed to this report.

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Dow, S&P 500 inch up with retailers but Apple drags again

NEW YORK (Reuters) - The Dow and S&P 500 edged higher on Tuesday after stronger-than-expected retail data, though tech heavyweight Apple dragged on the market for a third day.

Apple was the biggest weight on both the S&P 500 and Nasdaq 100 <.ndx> after reports on Monday of cuts to orders for iPhone parts. Shares declined 3.2 percent to $485.92 and closed below $500 for the first time since February.

Retail stocks advanced after a government report showing retail sales rose more than expected in December was seen as a favorable sign for fourth-quarter growth. A separate report showed manufacturing activity in New York state contracted for the sixth month in a row in January.

"A little better-than-expected news on retail sales once again reinforces that the consumer remains alive and reasonably well," said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia, which manages about $54 billion in assets.

Among retailers, American Eagle Outfitters Inc gained 4.8 percent to $20.58 and Gap Inc rose 3.4 percent to $32.46. The Morgan Stanley retail index <.mvr> advanced 1.5 percent.

Express Inc surged 23.8 percent to $17.40 after the apparel retailer raised its fourth-quarter and full year 2012 outlook.

The Dow Jones industrial average <.dji> was up 27.57 points, or 0.20 percent, at 13,534.89. The Standard & Poor's 500 Index <.spx> was up 1.66 points, or 0.11 percent, at 1,472.34. The Nasdaq Composite Index <.ixic> was down 6.72 points, or 0.22 percent, at 3,110.78.

Apple's stock has lost about 7 percent in the last three sessions and is down 8.7 percent since the start of the year.

"It's tough to discern exactly what's putting the pressure on it. But at the end of the day, its influence, considering it's still 3 1/2 to 4 percent of the S&P 500 index, is being felt," Luschini said.

"I attribute (it) to just some of the bloom coming off of the rose. They haven't necessarily done anything wrong, as much as others have caught up."

Also keeping investors on edge is the looming debt ceiling debate. On Monday, President Barack Obama rejected any negotiations with Republicans over raising the U.S. debt ceiling. The United States could default on its debt if Congress does not increase the borrowing limit.

Resolving the debt ceiling is more a question of how than if. Investors don't expect a U.S. default, but they are also wary of another eleventh-hour agreement like the one in August 2011.

An expected lackluster earnings season, too, kept investors from taking aggressive bets. Analyst estimates for the quarter have fallen sharply since October. S&P 500 earnings growth is now seen up just 1.8 percent from a year ago, Thomson Reuters data showed.

Homebuilder Lennar reported a sharp rise in quarterly profit, but the stock declined 0.8 percent to $40.68 on worries that growth in orders was slowing.

Dell Inc shares added to Monday's gains, ending up 7.2 percent to $13.17 after sources said talks to take the computer maker private are in an advanced stage.

On the down side, shares of Facebook dropped 2.7 percent to $30.10. The company unveiled a "graph search" feature that CEO Mark Zuckerberg said would help its billion-plus users sort through content within the social network and its content feeds.

Volume was roughly 5.8 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, compared with the 2012 average daily closing volume of about 6.45 billion.

Advancers outpaced decliners on the NYSE by about 17 to 12 and on the Nasdaq by about 13 to 11.

(Additional reporting by Chuck Mikolajczak; Editing by Kenneth Barry and Nick Zieminski)

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