Sam, 20, said: "There is no way we will be going anywhere near where it happened. It's left us terrified of further repercussions. We're discussing security."

 

Screen beauty ... Sam Faiers

 

Billie added: "It's the only thing we can do to feel safe."

A spokesman said: "It is being arranged. Whenever the girls feel it appropriate they will have security around them."

 

Gesture ... Peri Sinclair takes flowers to sisters' house

LOUIS WOOD / THE SUN

 

Replacement locks were fitted at their home yesterday after the thugs stole Billie's keys along with her £1,500 handbag, mobile, jewellery and shoes. She said: "We've been too scared to go out. I lost everything."

The sisters — who run a boutique in Brentwood and are regulars on the Essex party circuit — are considering a trip out today. They will also be visited by police to take statements.

 

Thoughtful ... pal Mark Wright buys gifts for the girls

 

Yesterday The Only Way Is Essex newcomer Peri Sinclair and Sam's ex Joey Essex, 21, took flowers to their home.

The sisters have decided to continue filming the programme and references will be made to their ordeal in tonight's show.

 

Precaution ... locks being changed at pair's home

 

Co-star Mark Wright was due to visit last night for dinner. Earlier he was seen buying cuddly toy gifts for the girls.

Viewers will see tonight's ITV2 show fade to black at the end, before Sam talks to him about the attacks.

McLaren driver Lewis, 26, says the X Factor supremo is one of the key reasons that his four-year romance with Nicole Scherzinger hit the skids.

Lewis Hamilton and Nicole Scherzinger (Pic:PA)

IT’S just as well Simon Cowell likes fast cars – he might need to speed off sharpish if F1 race ace Lewis Hamilton claps eyes on him...

McLaren driver Lewis, 26, says the X Factor supremo is one of the key reasons that his four-year romance with Nicole Scherzinger hit the skids.

He reckons 52-year-old Cowell’s decision to offer Nicole, 33, a judging job on X Factor USA – replacing Cheryl Cole – put “immeasurable strain” on the couple’s relationship.

Lewis has been tied up on the Grand Prix circuit while former Pussycat Doll singer Nicole’s own hectic schedule has prevented her from spending time with him on race days.

It means they have barely seen one another in person since May.

Concerned by both their hectic lifestyles, Lewis is understood to have decided they needed a break – as I revealed on Monday.

Last night, a source close to the couple confirmed: “Lewis and Nicole have been having problems for the past six weeks.

“Increasingly hectic schedules this year have meant limited face-to-face time.

“They’ve probably spent more time on the phone or on Skype than they have in person.

“Sadly, Nicole’s job on X Factor USA – which, professionally, has been an unmitigated success – appears to have come at the cost of her relationship.

“Nicole was under enormous pressure to succeed and was desperate to please Simon, her boss.

“But Lewis found their intense working relationship hard to contend with.

“This, plus Lewis’s crazy international jet-set lifestyle, put immeasurable strain on the pair.

“She was crushed and did everything she could to make it work. They are still good friends though and the break-up is all very amicable.”

Multi-millionaire Lewis, who was said to be in a “vile mood” after last weekend’s Korean Grand Prix, recently said he was a long way off wanting to start a family.

Meanwhile, Nicole has become friends with host Steve Jones, who is said to have a crush on her.

Last night, a spokesman for the couple declined to comment.

Libya: Col Gaddafi buried at dawn

 

Officials said earlier that the ousted Libyan leader would be buried in a secret desert grave, ending a wrangle over his rotting corpse that led many to fear for the country's governability. Transitional government forces had put the body on show in a cold store in Misurata while they argued over what to do with it, until its decay forced them on Monday to end the display. His son Mutassim is thought to have been buried in the same ceremony. A few relatives and officials were in attendance, according to a Misurata military council official. Yesterday, the government bowed to international pressure and announced a commission to determine how Gaddafi died after he was cornered in a drain while trying to flee Sirte, his besieged home town. Mustafa Abdul Jalil, the chairman of the NTC, and other officials have said Gaddafi was killed in crossfire. Mr Jalil said: "In response to international calls, we have started to put in place a commission tasked with investigating the circumstances of Muammar Gaddafi's death in the clash with his circle as he was being captured."

Pop legend Madonna today told a court of her 'alarm and distress' after a delusional fan, who believes the star loves him, broke into her £10million London home and rifled through her bedding.

Grzegorz Matlok, 30, burgled a mews house linked to the singer's luxury townhouse in Marylebone, central London, and stole a can of Red Bull after wandering through two bedrooms and a living room.

Southwark Crown Court heard Matlok was discovered holding the drink and playing with a kitchen light switch at around 4.40am on March 12 by Madonna's former gardener-turned film director Nathan Rissman, 39, who was staying in the mews at the time.

When he was quizzed over what he was doing and told Madonna was not staying there, he said: 'I'm sorry. Arrest me, arrest me'.

He later told police he had been given permission by the singer and had found a welcome note from her.

A map with a large 'M' scrawled over Madonna's home and a bag containing a safety knife, nail scissors, a coach ticket from Poland and Matlok's passport were found in a bag outside the property.

A year ago Matlok sneaked into the Wiltshire estate Madonna used to share with ex-husband Ritchie and was caught putting on his clothes.  

The 'Music' star was heard to be 'distressed and unsettled' by Matlok's two successful break-ins and said she feared for the safety of herself, her four children and her staff.

Prosecutor Philip Stott said: 'It appears that the defendant took a route, by examination of the lights he had turned on, through the lounge and kitchen and into a bedroom and dressing area and then gone through an inter connecting door where again he had gone into a bedroom and dressing room, where he disturbed some bed clothes.'

 

 

Matlok had broken into the house after smashing a window with a stone and using a rope and scaffolding to enter one of the three properties by a first floor window.

The court heard he had travelled to England from Poland by coach a few days before the burglary on March 12.

Mr Stott said that in interview Matlok told Madonna's security manager he was there 'To see Madonna' and afterwards told police she had okayed his visit.

Country house: A year ago Matlok sneaked into the Wiltshire estate (pictured) Madonna used to share with ex-husband Guy Ritchie

'He told the police he had permission to stay in the flat and that Madonna knew he was coming,' said the barrister.

'He said he had found a note saying welcome and he went inside.

'He said he had been at the address two or three days earlier, but no one had answered the doorbell.

'He said he was not there to steal anything - he said he had sent messages to Madonna over the internet to say he was going to turn up.' 

In a victim impact statement read to the court Madonna said: 'I do not know the defendant, I've not had any form of relationship with the defendant nor have I had any form of contact by phone or by email, or by any other way, with the defendant.

'In particular I've never given the defendant permission to enter the premises or any of my other premises.

'I feel very alarmed and distressed by the actions of the defendant.

When Matlok broke into Wiltshire home, he was restrained by Guy Ritchie (pictured)

'It is extremely unsettling to know that despite the extensive security I have he has been able to break into two of my residential properties.

'I'm worried about my children's safety as well as the safety of my staff. I'm also naturally worried about my own safety.' 

The court heard that Matlok suffered from 'delusions that Madonna loved him' but, according to consultant psychiatrist Dr Nadji Kahtan, his schizophrenia could be controlled by medication.

'In hospital he's fully compliant and has expressed no wish to stop taking it [his medication] and he says he wishes to still take it because he recognises that he has a mental illness,' he said.

'We feel that the best way to manage his illness is for him to continue to be treated at a hospital in England until he can be moved to a hospital in Poland.' 

The court heard however that Matlok had attacked someone in his cell and had been 'rather aggressive' to women, including nurses.

When Matlok broke into the Wiltshire home of Guy Ritchie he was found by a housekeeper cowering under the bed of an 'outhouse'.

Mr Stott said he had to be restrained by Mr Ritchie, a gamekeeper and 'The Football Factory' director Nick Love.

'He had taken cash from Mr Ritchie and Mr Love and had put on a pair of Mr Ritchie's jeans,' he said.

Batteries, a torch, a bottle of shampoo and three credit cards had also been moved, according to Mr Ritchie, but no further action was taken and Matlok was deported in August 2010.

In June Matlok reportedly attempted suicide by setting fire to his cell and was said to have been dragged to safety by prison guards.

Madonna, 53, was not in the property at the time, having taken her four children - Lourdes, 14, Rocco, 10, Mercy, 6, and David, 5 -  to Michigan in the U.S. to pay her respects to her late grandmother Elsie Mae Fortin.

Southwark Crown Court heard Matlok was discovered holding the drink and playing with a kitchen light switch at around 4.40am on March 12

The Pole, who is being held at a secure psychiatric unit, was flanked by hospital staff and assisted by an interpreter at Southwark Crown Court today.

Matlok has admitted burgling the office in Marylebone but denied two charges of burglary relating to a house connected to it, both of which are owned by 'Madonna Ciccone'.

The two charges he denied were ordered to lie on the court file after prosecutors accepted Matlok's plea.

The burglary took place six months after Madonna was targeted by a man who was arrested outside her New York apartment carrying two knives.

Judge Deborah Taylor was expected to order Matlok's detention under the Mental Health Act, 1983, this afternoon.

The slain Libyan leader Moamer Kadhafi secretly spirited out of Libya and invested overseas more than $200 billion

 

The slain Libyan leader Moamer Kadhafi secretly spirited out of Libya and invested overseas more than $200 billion -- double the amount that Western governments previously had suspected, The Los Angeles Times reported late Friday. Citing unnamed senior Libyan officials, the newspaper said US administration officials were stunned last spring when they found $37 billion in Libyan regime accounts and investments in the United States. They quickly froze the assets before Kadhafi or his aides could move them, the report said. Governments in France, Italy, England and Germany seized control of another $30 billion or so. Earlier, investigators estimated that Kadhafi had stashed perhaps another $30 billion elsewhere in the world, for a total of about $100 billion, the paper noted. But subsequent investigations by US, European and Libyan authorities determined that Kadhafi secretly sent tens of billions more abroad over the years and made sometimes lucrative investments in nearly every major country, including much of the Middle East and Southeast Asia, The Times said. Most of the money was under the name of government institutions such as the Central Bank of Libya, the Libyan Investment Authority, the Libyan Foreign Bank, the Libyan National Oil Corporation and the Libya African Investment Portfolio, the paper pointed out. But investigators said Kadhafi and his family members could access any of the money if they chose to, the report said. The new $200 billion figure is about double the prewar annual economic output of Libya, The Times noted. Kadhafi, who lorded over the oil-rich North African nation for 42 years, met a violent end on Thursday after a NATO air attack hit a convoy, in which he was trying to escape from his hometown of Sirte. He survived the air strike but was apparently captured and killed after a shootout between his supporters and new regime fighters.

Criminal gangs are reverse-engineering cash card machines' software

 

According to a report by the Automated Teller Machine Industry Association (ATMIA), sophisticated criminals are using ‘reverse-engineering’ techniques to gain access to individual bank accounts and to banking software systems, giving rise to a threat of widespread theft and fraud. ATMIA sees evidence that criminals are targeting ATM software as a new frontier of fraud. Software reverse-engineering (RE) is highlighted as one of the most dangerous threats in ATMIA’s new ‘Best Practice Manual’. Reverse-engineering (RE) is the process of discovering the technological principles of a system through analysis of its structure, function and operation. In terms of software it can also be seen as "going backwards through the development cycle". The purpose is to deduce design decisions from end products with little or no additional knowledge about the structure and algorithms of the investigated application. RE is an essential instrument in hackers’ hands to circumvent software systems for various purposes. Julia Titova, Business Development Director of StarForce Technologies, said: “Most of the modern well-known software security breaches were made using RE. Unprotected applications can be easily reversed-engineered by even an intermediate level hacker. “Once the RE process is complete the hacker understands how an application works and is able to bring new functionality or utilise the application for his own needs. This is the most dangerous threat as the ATM owner/operator may not discover the system penetration for some time. While everything is working normally the fact that the system has been cracked is hidden but the fraudster can launch the malware mechanism at any time. “Protecting applications installed on ATMs requires attention through the whole software lifecycle, starting with the development phase and continuing during patching of already installed programs.”

¡Ole! Spain drives legality into mobile services with Sybase 365

 

Spain was one of the first countries to start to lay down laws relating to old non-registered pay-as-you-go SIM cards for anti-terrorism reasons i.e. you MUST tell the authorities your name and address and get a new SIM if you had one of the old anonymous ones. Following on from this "mobile legality" theme, news this week bubbles of Sybase subsidiary company Sybase 365 working with Spanish mobile operator Yoigo. The two firms have joined forces to offer registered SMS, a new service allowing companies to send customers confirmation text messages with the same legal standing as registered mail. According to Sybase, "Officially certified by the Spanish Real Casa de la Moneda (The Royal Mint of Spain) the Sybase 365 and Yoigo service recognises an SMS confirmation as legal proof of delivery of important documents and information. These certificates can then be used as evidence in judicial proceedings in Spain for enterprises wishing to demonstrate correspondence with their customers. This will enable companies and their customers to resolve disputes in a timely manner, avoiding the cost of court proceedings." With registered SMS, financial institutions, utility companies and enterprises will be able to use SMS where previously they would have used registered mail. Developers working to build in legally approved services into mobile (or desktop for that matter) applications should perhaps take note of Sybase 365's suggestion that an SMS provides a number of advantages over registered mail including five times better response rate over traditional mail and is read 288 times faster than email. "No other communication medium has the ability to reach more people than SMS, said Howard Stevens, senior vice president, global telco and international operations, Sybase 365. "Consumer acceptance and enterprise adoption of the mobile channel is fuelling the growth in volume, availability and sophistication of mobile services and the registered SMS services we're launching confirms this trend."

Catholic Church Child Trafficking Network

 

Spain is reeling from an avalanche of allegations of baby theft and baby trafficking. The trade began at the end of the Spanish civil war and continued for 50 years – hundreds of thousands of babies are thought to have been traded by nuns, priests and doctors up to the 1990s. This World reveals the impact of Spain’s stolen baby scandal through the eyes of the children and parents who were separated at birth, and who are now desperate to find their relatives. Exhumations of the supposed graves of babies and positive DNA tests are proof that baby theft has happened. Across Spain, people are queuing up to take a DNA test and thousands of Spaniards are asking ‘Who am I?’ Katya Adler has been meeting the heartbroken mothers who are searching for the children whom they were told died at birth, as well as the stolen and trafficked babies who are now grown up and searching for their biological relatives and their true identities.

Spain’s property bust is only getting worse.

AFP

Cranes erecting the Pelly tower under construction in Seville.

Spain’s property bust is only getting worse. The wonder is that the country’s economy and banks are still this resilient.

The Spanish government said Tuesday that housing prices remained in free-fall in the third quarter, dropping 5.5% from a year earlier, the biggest decline since 2009.

This makes Spain, in many senses, the worst case of a property bust in the developed world—the country is already deep in its third consecutive year of falling prices, with no rebounds.

Last year, the pace of decline slowed significantly, signalling some light at the end of the tunnel, but another metaphor is called for instead: that last year’s respite was nothing more than a dead cat’s bounce.

The good news should be the overall amount of the decline, since Spain’s government says prices are only down 18%, in nominal terms, since their peak in early 2008.

But that doesn’t include the effect of Spain’s persistent inflation, one of the highest in the euro zone, which makes the real drop closer to 30%—Spain’s government didn’t provide real price data in today’s release.

After earlier predictions of a short-term correction have been smashed, some analysts now say prices may keep falling for the next two years, eroding Spain’s household wealth and banking balance sheets.

Meanwhile, banks are struggling to keep up with the loss in value of the collateral against €400 billion worth of loans to construction and real estate firms, an amount that remains unchanged since 2008.

For Luis Garicano, a professor of economics and strategy at the London School of Economics, this number is perhaps the most dangerous of those related to the bust, since it indicates the banking sector exposure to such loans hasn’t diminished.

He estimates that a possible explanation is that banks have exchanged some non-performing loans for property that they now own, but not enough to offset the rising interest on the loans.

Many, if not most of these loans, are being rolled over to keep zombie developers in business, in the hope that the market will recover.

All the same, banks have also turned into property developers now.

Walk into any Spanish bank branch, looking for a mortgage, and you will see that is much easier to get it if you’ll just take one of the many, many houses the bank acquired from a bankrupt developer. But many will say why worry? The same house will be even cheaper next month.

Tony Mokbel supergrass set for $1 million reward

 

THE drug dealer who dobbed in crime boss Tony Mokbel is likely to be paid Victoria's first $1 million reward. He has already escaped being charged over his prominent role in Mokbel's gang, which included helping Mokbel organise a false passport to flee Australia. But veteran underworld figure Billy Longley yesterday warned the "grass" who fingered Mokbel would have to keep looking over his shoulder for the rest of his life. "A lot of people have gone to jail because of him, including Mokbel," Mr Longley said. "Such people have long memories and will want revenge." The previous biggest amount paid out by Victoria Police was a $100,000 reward in 1991. There are nine other $1 million rewards up for grabs at present. The police informer in the Mokbel case, codenamed 3030, was a key member of Mokbel's drug syndicate, known as The Company, as well as a drug user. Fat Tony doomed by his greed for speed Fat Tony doomed by his greed for speed Herald Sun, 1 hour ago Fat Tony drops legal bid for freedom Courier Mail, 1 day ago Fight to seize Mokbel's drug millions Herald Sun, 4 Oct 2011 Prosecutors set sights on Mokbel millions Courier Mail, 4 Oct 2011 Man jailed for helping Mokbel escape Herald Sun, 5 Sep 2011 He turned on Mokbel, and his other fellow gang members, soon after Victoria Police offered the $1 million bounty to find Mokbel in April 2007. Purana gangland killing taskforce detectives persuaded 3030 to work for them inside The Company. Information provided by 3030 resulted in multiple arrests of members of The Company, including Mokbel in Greece on June 5, 2007. The informer is a significant step closer to being paid the $1 million, as Mokbel is due in court tomorrow for a pre-sentence hearing. Mokbel pleaded guilty in April to drug charges relating to his masterminding The Company while on the run in Victoria and Greece. A Victoria Police spokesman yesterday confirmed the process of deciding on the reward would begin at the end of a 28-day appeal period after Mokbel's sentencing. Supreme Court judge Justice Betty King already has described 3030's assistance to police as "invaluable". And police have paid tribute to 3030, saying he played a vital role in helping them to locate and arrest Mokbel. Apart from providing telephone numbers so police could bug phones of Company members, including Mokbel's, 3030 helped identify people in The Company's business as well as the houses, hotels and storages they were using. Information provided to Purana by 3030 enabled officers to put recording and listening devices in The Company's cars, houses and storages, as well as bug phones. He also assisted police in introducing undercover operatives into The Company. With 3030's co-operation, Purana detectives were able to find Mokbel and arrest nine of The Company gang members in Melbourne on the same day Mokbel was picked up in Greece. Raids on Victorian properties associated with The Company led to the seizure of amphetamines, cocaine, precursor chemicals used to make amphetamines, drug-making equipment valued at more than $500,000, and almost $800,000 in cash. The informer also helped police to identify properties The Company bought with drug money, which enabled their seizure. Lawyers acting for Joseph Mansour, one of The Company members convicted as a result of 3030 turning police informer, queried the lack of charges against 3030. In jailing Mansour for 10 years, Justice King said: "Your counsel referred to the fact 3030 is not charged in respect of these activities, which is not surprising, as a number of these activities that he undertook were at the behest of the police to gather evidence. "His assistance in identifying and breaking this very large conspiracy could be described as invaluable."

top bike-club enforcer nicknamed "Mr. 187'' after the state penal code number for murder was gunned down Saturday in front of stunned spectators.

 

Despite a heavy police presence at a Hells Angels funeral Saturday, a top bike-club enforcer nicknamed "Mr. 187'' after the state penal code number for murder was gunned down Saturday in front of stunned spectators. Multiple sources told this newspaper the victim was Steve Tausan, a notorious sergeant-at-arms for the Santa Cruz chapter of the club suspected of killing another biker years ago. Sources said the incident Saturday was an inter-club squabble set off when Tausan punched a fellow biker and the biker retaliated by shooting him. A photographer for this newspaper saw other Hells Angels jump the shooter. Police declined to comment, saying only that there had been a shooting at the Oak Hill Cemetery. The funeral at the cemetery was for fellow Hells Angel Jethro Pettigrew, president of the San Jose chapter of the club, who was shot in a Sparks, Nev., casino by a member of the rival Vagos club. Townsend told a reporter that shortly after Pettigrew was killed that he had received death threats. Police and Santa Clara County Sheriff's Office are now guarding the Hells Angels headquarters in San Jose, as well as other locations where bikers gather.

Hells Angels and Bandidos club members ''own nightspots in Thailand tourist centres that have become popular haunts for bikies worldwide

 

Australian bikies with dubious reputations are now infiltrating Thailand and gang members have opened businesses on Phuket, reports an Australian newspaper. Hells Angels and Bandidos club members ''own nightspots in Thailand tourist centres that have become popular haunts for bikies worldwide,'' reports the Courier-Mail newspaper, which is based in the northern Australian state of Queensland. Members of the Bandidos - who acquired four new chapters in Indonesia during ''Bandidos Bali Bike Week'' earlier this year - are looking to set up business as far afield as Japan, a Queensland police source told the newspaper. Thailand was significant as a source of chemicals for drug manufacture and trafficking and scrutiny of the travels of Gold Coast bikies' travel would show ''a lot of trips'' to the country, the officer said. ''A lot of them are looking into Thailand - it gives them the opportunity to source pharmaceuticals. Hells Angels and Bandidos have got premises in Thailand. ''Of course, the Finks [another prominent bikie club] can't be left behind and they're looking too.'' The newspaper names one bar in Patong and another on Koh Samui as having been purchased by bikies with Hells Angels connections. The newspaper report on bikie connections on Phuket and in Asia is part of a series on the activities of Australian gangs at home and overseas. It's titled 'Bikie Inc, Organised Crime on the Glitter Strip.' Some have been involved in alleged property scams on Phuket, the report says. Danish, British and Norwegian bikie gang members have also been connected to the activities of Australian gang members, the report adds. Phuket expat motorcycle riders have always distanced themselves from gang activities and drugs and drawn the distinction between bikers and ''bikies.''

Hells Angel member killed at San Jose funeral for fellow biker

 

Hells Angels member was fatally shot Saturday at the San Jose funeral for a fellow biker who was killed last month at a Nevada casino, police said. The victim, who police have not identified, was shot shortly before 1 p.m. and taken to a hospital where he died about an hour later, said San Jose police spokesman Jose Garcia. No suspect has been arrested and the shooting remains under investigation. The shooting occurred at the funeral for Jeffrey Pettigrew, 51, president of the San Jose chapter of the Hells Angels, authorities said. The service was held at the Oak Hill Funeral Home & Memorial Park and drew an estimated 4,000 people. Pettigrew was attending a motorcycle festival last month when he was shot four times in the back by a member of the rival Vagos motorcycle gang during a brawl at a casino in Sparks, Nev. Ernesto Manuel Gonzalez of San Jose was arrested on suspicion of murder. Ten Vagos members were arrested earlier this month on suspicion of drug trafficking and a rash of violence during law enforcement raids throughout the Inland Empire. Garcia said he couldn't speculate whether the San Jose shooting was related to rivalries between the motorcycle gangs. Anticipating a large turnout, police were in the area around the cemetery as a precaution, patrolling and helping with traffic. Garcia declined to say whether police were at the funeral. "We had no credible information suggesting there would be violence," he said.

RBS staff told to pay for their own Christmas party

 

Another day, another downgrade. Reduced to surviving on two pints of lager and pack of crisps at recent Christmas parties, misery was heaped on Royal Bank of Scotland's highly-paid investment bankers on Friday as they were told that they would have to fund this year's bash entirely out of their own pocket.

HMRC clamps down on Swiss account holders

 

6,000 Britons who hold money in the Swiss arm of HSBC will soon receive a letter telling them that they need to own up to unpaid tax. The bank is acting on information received last year under a tax treaty. This revealed that more than 6,000 individuals, companies, trusts and other bodies held accounts and investments with HSBC Geneva. HMRC has already begun criminal and serious fraud investigations into more than 500 individuals and organisations holding these accounts. HMRC will shortly be writing to those who have not yet come forward, or are not under investigation. They will be offered a chance to contact HMRC and disclose all their tax liabilities, HMRC said. Fines of up to 200 per cent of any tax may, in certain circumstances, be imposed on people not coming forwards during this window for disclosure. "This is not an amnesty. There are no special rates of penalty or interest for those who come forward voluntarily," said HMRC's Dave Hartnett. "This is an opportunity for those who have made errors in past returns to correct them. The net is closing on offshore evaders. Don't wait for HMRC to contact you."

FORMER policeman lived the high life in Marbella by running a £300million VAT fraud

 

 – the biggest ever uncovered in the UK. Nigel Cranswick, 47, tried to cheat the taxman by claiming back tax on £2billion worth of bogus sales made by his mobile phone firm I2G. The “phenomenal” turnover was generated in eight months, HMRC said. Advertisement >> Meanwhile Cranswick lived it up in his rented villa in Marbella. “Despite this phenomenal turnover... I2G operated from a small office in Sheffield,” HMRC said. The scam was smashed after a five-year police probe, Newcastle crown court was told. Cranswick, from Sheffield, admitted conspiracy to cheat HMRC, as did accomplices Brian Olive, 56, of Doncaster, and Darren Smyth, 42, from Rotherham. Claire Reid, 45, also from Rotherham, admitted false accounting. The four will be sentenced next month

BRITS ABROAD

T

Rich Brits plot escape to France

 

 wealthy Britons are planning to flee what they believe to be an over-taxed and crime-ridden UK, with France the most favoured destination, according to a survey published by British bank Lloyds TSB. The survey, published on Monday, found that 17 percent of those with more than £250,000 ($391,025) in savings and investments wanted to move abroad in the next two years, up from 14 percent six months earlier. The most popular destination for the rich exiles was France (21 percent), followed by Spain (15 percent) and the US (11 percent).  Three-quarters of those questioned (73 percent) thought that crime was a bigger problem in Britain than other developed countries. "Sadly, it seems August's riots, tax increases and a rising cost of living have cast a pall over life in the UK for some wealthy people," said Nicholas Boys-Smith, managing director of Lloyds TSB International Wealth in a statement. "It may reignite fears of a 'wealth drain' from our economy as rich people seek pastures new," he said. 42 percent of those questioned named tax as a reason for leaving, up from 35 percent six months ago. Cost of living was a factor for 52 percent, up from 31 percent. Research in January 2011 suggested that 4.6 percent of the UK population have over £250,000 in savings and investments, which equals around 2.8 million people.

A poorly designed, over-extended and ill-disciplined monetary union is in danger of falling apart

Illustration by Matt Kenyon

What if it falls apart? For all my adult life, I have been what in England is called a pro-European or Europhile. For most of that time, European history has been going our way. Now it may be on the turn. Soon, it could be heading the Eurosceptics' way. What then?

Over the last half-century, the institutional organisation of Europe has progressed from a common market of six west European states to a broader and deeper union of 500 million individual Europeans and 27 countries, from Portugal to Estonia and Finland to Greece; 17 of them share a single currency, the euro. There are no border controls between 25 European countries in the Schengen area. Enveloping it all is the fragile skin of the European convention on human rights (now under facile attack from some British Conservatives) which allows any individual resident of no less than 47 countries, including Russia, to contest a violation of their inalienable human rights all the way to a European court of human rights in Strasbourg.

Never has Europe been so united as this. Never have more of its people been more free. Never before have most European countries been democracies, joined as equal members in the same economic, political and security community. Our continent still has a grotesque amount of poverty, injustice, intolerance and outright persecution. (Try living as a Roma or Sinti in eastern Europe for a taste of all that.) I prettify nothing. But – to adapt a famous remark about democracy by that great pro-European British conservative, Winston Churchill – I do say that this is the worst possible Europe, apart from all the other Europes that have been tried from time to time.

Now all this is under threat. A poorly designed, over-extended and ill-disciplined monetary union is in danger of falling apart, bringing bitter recriminations and lasting divisions. More fundamentally, the past emotional motivators and political engines of European unification are no longer there. The peoples of Germany, the Netherlands and other core countries of the European Union are loth to take steps of further integration which many of the creators of monetary union thought would be necessary to sustain it.

I blame politicians like Angela Merkel for not showing more leadership in this respect, but such leadership would involve a heroic, uphill struggle to persuade reluctant publics in what are still (contrary to what Eurosceptics claim) largely sovereign national democracies. If these were not sovereign national democracies, the whole financial world – from Washington to Beijing – would not this week have been waiting with bated breath on the vote of one small party in the parliament of Slovakia.

I note in passing that many of the current difficulties of the eurozone were predicted back in the 1990s, and I was a sceptic about monetary union at that time. This is what I wrote in 1998: "The rationalist, functionalist, perfectionist attempt to 'make Europe' or 'complete Europe' through a hard core built around a rapid monetary union could well end up achieving the opposite of the desired effect. One can all too plausibly argue that what we are likely to witness in the next five to 10 years is the writing of another entry for [Arnold] Toynbee's index [to his A Study of History], under 'Europe, unification of, failure of attempts at'." But I am not now going to hide behind that testament to my own earlier scepticism about one element of a larger project.

As a pro-European, I stand by the whole project, warts and all. I recently contributed to an appeal – which you too can sign – arguing that the eurozone can only be saved by further fiscal integration and a strategy for growth. Remarkably, even the Eurosceptic prime minister David Cameron recently told the Financial Times that Germany and France need to fire a "big bazooka" to convince financial markets and hence preserve the eurozone. That is a bit like the Duke of Wellington wishing Napoleon success in consolidating his continental empire – but extraordinary times do produce such delicious moments.

Beyond this, however, I'm not going to add a single word to the 537 newspaper columns you have already read explaining how the eurozone must and can, or must not and can not, be saved. You decide which economic commentator you believe.

Instead, I want to ask what happens if the eurozone does fail, one way or another – and that failure begins a much larger process of gradual disintegration. Suppose that the EU in 2030 has become something like the Holy Roman Empire in, say, 1730: still extant on paper, but more origami than political reality. What then?

For us pro-Europeans, what happens then will be, first of all, a paradoxical kind of liberation. Rather like the supporters of a long-term incumbent government, for decades now we have felt some obligation to defend the existing state of affairs, with all its obvious flaws. Eurosceptics, by contrast, have enjoyed the glorious irresponsibility of opposition – and, heaven knows, the Brussels institutions furnish endless easy targets for the sceptic and the satirist.

Now the boot will be on the other foot. For a few years, like an incoming government, Eurosceptics will be able to blame current problems on the preceding regime (overhasty monetary union led to German-Greek loathing, etc), but that only lasts so long. Sooner or later it will become clear that it is their kind of Europe we are living in, not mine.

More German travelers have been using foreign airports since a flight tax was imposed early this year.

 

 

Consider two small airports in the middle or Europe. At Maastricht Aachen Airport, business is booming thanks to an influx of German passengers who are fleeing a national aviation tax introduced on January 1, 2011. Meanwhile, just 80 kilometers across the border, Germany's Weeze Airport has been steadily losing customers.

A few years ago, things were exactly the opposite. The Netherlands had its own, yearlong experiment with an aviation tax, but revoked it in July 2009 after it saw Dutch hubs like Maastricht Aachen Airport lose passengers to rivals in neighboring countries, including Germany.

The levy cost Dutch airports, airlines, and related businesses between 1.2 and 1.3 million euros in lost revenue, according to a study by Amsterdam Aviation Economics, a research institute affiliated with the University of Amsterdam.

Hans van Mierlo, a professor of public finance at the University of Maastricht, said the abundance of transportation options in Europe means travelers can and will seek out alternatives whenever one country unilaterally imposes an air passenger tax.

"The [Dutch] crowd went to Germany; now the German crowd comes to us," he told Deutsche Welle. "I am surprised that the German government didn't learn from the Dutch failure."

Maastricht-Aachen Airport may be small, but traffic is growing rapidlyHefty rates

The German aviation tax runs at a rate of eight euros per one-way flight within Europe, 25 euros for medium-haul services to the Middle East and Sub-Saharan Africa, and 45 euros for long-haul flights. The tariff only applies to flights originating in Germany. The German Finance Ministry reported the duty raised 434 million euros in revenues in the first half of 2011.

However, for travelers, the tax can double the total cost of a bargain ticket. That has driven Irish budget carrier Ryanair to cancel some of its services from Weeze Airport and add flights at Maastricht. Meanwhile, rival airline Germanwings has launched a service linking Maastricht to Berlin 12 times per week.

Those moves helped drive Maastricht Aachen Airport's whopping 70 percent increase in passengers so far this year. That is quite a comeback from the time of the Dutch aviation tax, when it lost 25 percent of its customers.

Maastricht's airport has new routes to Bucharest, Tenerife, and other spotsAmong the new clientele is Ne Pham from Jülich, Germany. She told Deutsche Welle that she used to fly out of Cologne or Dusseldorf to destinations like Italy, the United States and her native Vietnam.

"It's cheaper to fly from [Maastricht] than from Germany," she said. "It's easy to find, has lots of parking spaces, and a very fast check-in. It's small but nice."

Maastricht makeover

To accommodate new passengers, Maastricht Aachen Airport has renovated its main waiting area and sole restaurant. A new bus line runs from Cologne directly to the Dutch airport, where travelers are greeted by a row of flags from seven European countries. Airport staff members are required to speak German and English in addition to Dutch, and a number of them speak French as well.

Marion Schramm and her husband, from Geilenkirchen, Germany, echoed Pham's reasons for choosing Maastricht Aachen Airport. But they were not as impressed by the small airport's recent makeover.

"It's obviously dinky," Marion Schramm told Deutsche Welle, "You see everything right away. But it's a lot cheaper than Germany at the moment."

Customers have mixed reviews for the small Dutch airport's facilities

Weeze's woes

The German Airport Association, which represents German air hubs, has called for an immediate end to the national flight tax. It reported a tepid growth rate of 3.2 percent at airports throughout the country this July, compared with the same month last year.

Weeze Airport, near Dusseldorf, had 22.8 percent fewer customers in the same time period. Ludger van Bebber, the airport's managing director, said many of the hub's clients used to come from the Netherlands.

"The aviation tax destroys the level playing field for us," he told Deutsche Welle. "That is the main issue we have here at Weeze."

Meanwhile, Berlin's two hubs are seeing travelers hop across the border to nearby Polish airports. And people in Munich do not have to drive far to reach a number of alternative airports in Austria and the Czech Republic.

The chairman of the Maastricht airport's board is planning for growth to continueDutch chairman confident

While the German Finance Ministry has denied recent media reports that it might lower the aviation tax rates, the ministry is scheduled to evaluate the levy's effects on small and medium-sized airports in June 2012.

The chairman of Maastricht Aachen Airport, Jan Tindemans, said he is not worried about his business in the short term - even if Berlin ends up decreasing or revoking the tax.

He told Deutsche Welle that winning back market share in the wake of the Dutch tax experiment was very difficult. He does not expect things to be any easier for German hubs.

"No bakery wants its customers to go for one or two times to another bakery, because they always think [the customers] will stay there," he said. "There will be some people who will go back, but I don't think there will be much of an effect."

Tindemans said Maastricht Aachen Airport is seeking to add more airlines and destinations to its roster. He added that his airport could double annual traffic to almost one million passengers over the coming years if economic conditions remain stable.

British man arrested on Tenerife with 34 heroin capsules in his body

 

34 year old British man has been arrested at the Los Rodeos Tenerife North Airport after found to be carrying 75 capsules of heroin inside his body. News has just been released of the arrest which took place last Wednesday afternoon, and a statement from the Guardia Civil says the total weight of the drug recovered was 913 grams. Apparently when stopped by customs officials on arrival from the Spanish mainland, suspicions were raised when the Briton was unable to give a clear explanation as to the reason for his visit to Tenerife. The man, who has not been named in reports, was subjected to medical and police surveillance in the Canaries Universitario Hospital until all the capsules had been passed. That was checked by x-ray.

City Hall has now set up a special space where woman and men can carry out the oldest profession in the world without being fined.

area has been prepared next to the Guadalhorce river

Photo EFE

 

Ten months after introducing new restrictions on prostitution in Málaga, prohibiting the offering of services less than 200m from shops or homes, the PP controlled City Hall has now set up a special space where woman and men can carry out the oldest profession in the world without being fined.

Some are calling the idea a ‘follódromo’, and it reminds others of the late Marbella Mayor, Jesús Gil’s intention to establish a ‘Putódromo’ in Marbella.

The area chosen is next to the Guadalhorce river, and over the last few weeks the Ayuntamiento has levelled the ground and installed a dozen or so lampposts. 

Several non-governmental organisations have already criticised the plan, considering that it will expose the prostitutes to robberies and aggressions, but the prostitutes think it is the only way for them to avoid the actions of the police and fines of 700 €.

Sandra Vicente, from the Commission to Investigate Domestic Violence against Women, is reported in El País as saying
‘The problem is the Town Halls are taking it for granted that prostitution is legal. Most of the laws penalise the women who are in the street, but do not specifically mention prostitution’.

Mobile phone users suffering from 'text neck'

 

The affliction, caused by flexing the neck for extended periods of time, can be a forerunner of permanent arthritic damage if it goes without treatment. Cases of the repetitive strain injury are on the rise as smart phones and tablet computers such as the iPad become increasingly popular, experts said. In severe cases the muscles can eventually adapt to fit the flexed position, making it painful to straighten the neck out properly. One chiropractor said her company had treated thousands of patients for the condition, which can also result in headaches and shoulder, arm and wrist pain. Rachael Lancaster, of Freedom Back Clinics in Leeds, said: "Text neck is caused by the neck being flexed for a prolonged period of time

15 year old British holidaymaker taken into care as his aunt is drunk

 

The police in Sant Antoni de Portmany got more than they bargained for when they asked the 15 year old who was looking after him on holiday The juvenile unit of the Sant Antoni de Portmany Police on Ibiza has decided to admit a British 15 year old to a youngsters’ centre while it is hoped that he can return back to the U.K. EFE news agency reports that the 15 year old was found on the island looking after his alcoholic aunt, and a statement from the local police on Friday explained that the case came to their attention last Wednesday, when the police were involved in a minor incident with the youngster. The 15 year old was found in the street and the police asked who was looking after him. He told them that it was his 40 year old aunt, with whom he had come to Ibiza on holiday. However the police found the aunt to be drunk in the hotel and possibly also under the effects of drugs or medicaments, and considered she was in no condition to look after the adolescent. They took note of the situation and returned a few hours later and then found the 15 year old also drunk, and the woman was now ‘totally out of it’ and ‘shrieking at her nephew for no apparent reason and with clear symptoms of being drunk’. The police saw empty alcohol bottles on the floor and medicines on the furniture. After a time the police managed to locate the boy’s mother by phone in England, the sister of the aunt, and explained the situation, calling on her to come to Ibiza urgently to deal with her son. The mother apparently told the police that she could not travel to Ibiza the next day, and it was agreed with her that the boy should sleep that night in another room with some friends. Then the decision was taken, with the help of the British consular offices in Ibiza to try and mediate with both the mother and the aunt, and finding that collaboration missing, and assembling witness reports on incidents between the boy and his aunt in the hotel, it was decided to remove the 15 year old into temporary care. He’s now in the Sa Coma centre awaiting the arrival of his mother to take him back to the UK. The consul is helping with the organisation of the flights.

Spanish banks in €6bn merger talks

 

Banco Popular, Spain’s fifth-biggest listed bank by assets, has offered to buy its smaller listed rival Banco Pastor in a merger that marks a new stage in the restructuring of the country’s financial sector. In filings published on Friday by the Comisión Nacional del Mercado de Valores (CNMV), the market regulator, the banks said they were proposing a friendly all-share deal in which Popular would offer to buy 100 per cent of Pastor. More ON THIS STORY Dismay at Spanish bank restructuring Spain nationalises three more savings banks In depth European banks Santander predicts return to big profits Global Insight Italy and Spain The CNMV had earlier suspended trading in shares of Popular, with a total market value of €4.99bn, and of Pastor, valued at €827m, apparently after news of the discussions leaked before the planned announcement on Monday. At Friday’s share prices, the Popular offer represented a one-third premium for Pastor and valued the target bank at 0.75 times book value, according to the Pastor camp, although Popular’s share price could fall once the suspensions are lifted. CaixaBank, the banking arm of the Barcelona-based La Caixa savings bank, was valued at 0.8 times book value at its flotation earlier this year, but Bankia, comprising Caja Madrid and six others, managed only 0.4 times when it was listed. Three savings banks seized by the official bank rescue fund last month were valued at between zero and 0.12 times book. Until now, the Bank of Spain and the Spanish government have focused on forcing unlisted savings banks to recapitalise themselves and merge with each other to reduce costs and improve efficiency after the collapse of the Spanish housing and construction bubble. Listed banks have been seen as potential buyers rather than takeover targets. “This is only the start,” said one person aware of the talks as the boards of the two companies held separate meetings. “There is going to be a huge shake-out in the banking sector.” Popular is a national Spanish bank that has focused on retail banking and lending to small and medium-sized businesses, while Pastor’s activities are concentrated in the north-western region of Galicia. Pastor – along with four Spanish cajas or savings banks – was one of the nine European banks that failed Europe-wide stress tests in July.

Kelly Hoppen accepts £60,000 damages in hacking case

 

Interior designer Kelly Hoppen has accepted £60,000 in damages over the News of the World phone-hacking case. Her lawyer told the High Court the settlement was for "misuse of private information and breach of confidence". Ms Hoppen is the former stepmother of Sienna Miller, whose relationship with fellow actor Jude Law was of huge interest to the now defunct tabloid. News International and News Group Newspapers agreed to pay the money as well as her costs. Numerous articles published in the News of the World between 2004 and 2006 contained "intrusive and private information" relating to Ms Hoppen, her lawyer Mark Thomson told the court. "The claimant did not know the source of this information at the time of publication and often could not understand how it was possible for the News of the World to obtain such private information," he said. New evidence "In 2009, as a result of the claimant's long held concerns, her solicitors, Atkins Thomson, wrote to the Metropolitan Police Service asking whether they had any evidence that the claimant had been targeted by News Group Newspapers Limited in 2004-2006." He said his client was at first told the police had no evidence to suggest she had been a target, but that changed in February 2011 after further evidence emerged. The court heard that News Group Newspapers admitted liability in April. Michael Silverleaf QC, counsel for the newspaper group, told Mr Justice Vos that he wanted to repeat the "sincere and unreserved apology" made to Ms Hoppen in April. Ms Hoppen is one of a number of celebrities and public figures pursuing civil cases against Rupert Murdoch's media group. In January, the High Court is due to hear claims from a handful of test cases involving those who say their phones were hacked into. They include former footballer Paul Gascoigne, Jude Law, sports agent Sky Andrew, and MP Chris Bryant. The mother of a 7/7 bombing victim will also pursue a separate civil case against News International. Sheila Henry's son, Christian Small, was killed in the 2005 Russell Square explosion.

Katie Price a victim of £14k fraud

 

GLAMOUR girl Katie Price has fallen victim to a fraudster who impersonated the model and stole £14,000. 11 comments Related Stories Jordan’s new man is Danny Cipriani KATIE Price strikes up amazing romance with hunky rugby star – days after dumping toyboy Katie & Leandro in shock 'split'Leandro: I want to marry Katie PriceKatie Price trend is way off- track A busty woman donned a blonde wig and sunglasses during a visit to a bank - believed to be a HSBC in Lincolnshire - and withdrew money. She took out £9,000, followed by two payments of £2,500. The real Katie, 33, who is currently enjoying a fling with rugby ace Danny Cipriani, only learnt of the fraud when her credit cards were rejected during a shopping trip in Brighton. A source told a newspaper: "Katie tried to make a couple of purchases. When she went to pay by credit card, her PIN kept getting declined and the card was eventually blocked – much to her embarrassment. "She tried to pay with three different cards and the same happened with all three. "After calling her bank and speaking directly to her branch manager, she was informed they had received a call from a woman posing as her 24 hours previously who had cancelled the cards. "Katie then asked what the balance of one of her accounts was and informed it was around £14,000 less than the amount she was expecting. A £9,000 withdrawal had been made, followed by two £2,500 ones, and none of them were by her." The source added items were ordered using Katie's credit card details and real address for billing purposes, but were to be delivered to an address in the north. HSBC's fraud department have contacted the police who are trying to track down the person responsible. Investigating officers have obtained CCTV footage of a Jordan look-a-like attempting to withdraw cash. Katie said: "It's really horrible. All I know is that police have footage of these people pretending to be me – I don't even know if it is a man or a woman. "Obviously my ego hopes it was, at least, a female impostor."

The Duchess of Alba with her new husband Alfonso Díez outside Dueñas Palace in Seville.

 Photograph: Javier Diaz/Reuters

She is a frizzy-haired 85-year-old eccentric and hugely wealthy aristocrat with a squeaky voice and an impossibly long name. He is a lowly civil servant 25 years her junior. Today the two were married, prompting a frenzy of excitement in this southern Spanish city.

Crowds formed outside Seville's Dueñas Palace – just one of several regal residences the Duchess of Alba owns around Spain – as she, her family and a few friends gathered for a small ceremony for her marriage to Alfonso Díez in the palace's private chapel.

The billionaire duchess, who has been known to ask the media for money in the past, allowed in just two news agencies – for free.

"She is an amazing woman. She does whatever she wants and doesn't give a damn what people say," said 18-year-old tourism student Ana Trigo, as she fought for space on the pavement outside the Dueñas's imposing gates. "I know she's got lots of money, but that's just the luck of birth isn't it?"

A neatly groomed priest, a flamenco singing troupe, innumerable bunches of roses, sunflowers and carnations, and at least two bullfighter guests made their way into the palace complex as security guards pushed back the crowd of gawping, shouting Sevillanos.

"I've written a paso doble and want to sing it for her," said composer Vicente Tarrancón, who travelled the 300 miles from Alicante with an electric piano and a violinist but who remained firmly outside the palace gates.

Onlookers mostly were not disturbed by the duchess's inherited wealth, estimated at up to €3.5bn (£3bn), even though one in five Spaniards are currently unemployed and the economy is heading towards a double-dip recession.

Apart from her palaces, the duchess owns huge tracts of land all over Spain and has a collection of paintings that include works by Goya and Velázquez.

"She gives a lot of money to charity and employs a lot of people. And she repaired the church of the Christ of the Gypsies," said housewife Mari Luz González. "She's wonderful."

Cries of "Guapa!" or "Good-looking!" welcomed the pallid duchess when she appeared dressed in a pink wedding dress with a green ribbon around her waist at the palace gates with her new husband. She responded by dancing a few flamenco steps.

Most people, however, seemed to be taking a tongue-in-cheek attitude to the duchess's latest romance and using it as an excuse to indulge in Seville's favoured pastime of partying. At least one onlooker had dressed in a bridal gown. Another came disguised as Spain's monarch, King Juan Carlos, who was reportedly petitioned by the duchess's children to see if he could dissuade their mother from remarrying.

"Let's face it, the scandal is not that he is younger, but that she is so old," said Margarita Ruibal. "It's not every day you hear of someone of that age getting married."

An unemployed man who called himself Buti came dressed as a yoghurt carton to protest at the €40 a day paid to farmworkers. "Here they are, living it up in their palaces while 300 families a day lose their homes in Spain," he said.

The duchess's attempts to stop her six children from squabbling with her husband-to-be over money – by making her will public before the marriage – failed to appease them all, prompting the duchess to call one daughter-in-law "lying, wicked and covetous" on a television gossip show.

The daughter-in-law and her husband were among the few guests who turned down the wedding invitation. "Alfonso doesn't want anything. All he wants is me," the duchess said earlier this year.

Newsstands, meanwhile, displayed the front cover of Interviú magazine – which showed topless pictures of the duchess taken three decades ago on an Ibiza beach. The publicity-loving aristocrat was said to be formally furious, but privately delighted, by the flattering figure she boasted when she was a mere fifty-something. The magazine said it had held on to the pictures for 30 years so as not to upset the duchess, but thought them now worth publishing.

Local shops were selling duchess-themed "I love DQS" T-shirts featuring her trademark frizz of white hair. The regional CanalSur TV station beamed live coverage into the city's bars, where unemployed men sold postcards of the Virgin Mary statues that populate Seville's churches.

The duchess, whose full name is María del Rosario Cayetana Victoria Alfonsa Fitz-James Stuart y de Silva, boasts 49 inherited aristocratic titles – at least 20 of which allow entry into the select club of Spanish Grandees. She also claims the title of Duchess of Berwick and boasts blood ties to the British royal family and Winston Churchill.

Twice widowed, her last husband Jesús Aguirre, who had previously been a leftwing Catholic priest, died in 2001