The fine line between legitimate businesses and pyramid schemes









Controversy is again casting a shadow over the multilevel marketing industry, as nutritional supplement company Herbalife Inc., which has thousands of distributors in the Chicago region, has been publicly called a pyramid scheme by a prominent investor — an allegation the company vigorously denies.


Meanwhile, a different multilevel marketer, Fortune Hi-Tech Marketing, was shut down in recent weeks after a lawsuit was brought by regulators and several states, including Illinois, alleging the company scammed consumers out of $169 million. The scheme affected an estimated 100,000 Americans, including some in Chicago, where it targeted Spanish-speaking consumers, the Federal Trade Commission alleged.


Most people outside the industry might have only a vague notion about multilevel marketing, also called network marketing and direct selling. It often involves personal sales of cosmetics, wellness products or home decor items — or as critics flippantly call it, "pills, potions and lotions" — usually sold through product parties hosted by friends or relatives.





For sellers, the companies offer the appeal of starting a business on the cheap with little training, working from home and being their own boss, if only for part-time money. Some might recruit friends and family to become sellers, which augments their own commissions and gives them a shot at the six-figure compensation many such marketing companies tout but few distributors attain.


The largest multilevel marketing companies, often known as MLMs, are household names: Avon, Mary Kay, Pampered Chef and Amway. MLMs have annual sales of about $30 billion, with about 16 million people in the United States selling their products, according to the industry group Direct Selling Association, which represents these firms and others.


The recent controversies might raise the question: What's the difference between a legitimate multilevel marketing company and an illegal pyramid scheme, in which only people who get in first — at the top of the pyramid-like structure — make money and everyone else is a dupe?


The harshest critics maintain there is no difference, that there's no such thing as a legitimate MLM and that the industry's secrets stay safe because of a cultlike mentality and a blind eye of regulators.


Jon M. Taylor, who was once a seller for an MLM company, said he has studied the industry for 18 years and analyzed more than 500 MLM companies. He maintains the website MLM-thetruth.com and offers a free e-book there.


"I have not yet found a good MLM — a good MLM is an oxymoron," Taylor said.


He said all MLM companies have the same flaw: They depend on endless chains of recruiting new members.  "There is no more unfair and deceptive practice than multilevel marketing," Taylor said.


Tracy Coenen, a forensic accountant and fraud investigator with Sequence Inc. in Chicago and Milwaukee, is author of the Fraud Files Blog. She is also a critic.


"Multilevel marketing companies are pyramid schemes that the government allows to operate," said Coenen. "The only difference is that Herbalife, or any multilevel marketing company, has a tangible product that they use to make their pyramid appear legitimate."


The Direct Selling Association says MLMs are legitimate businesses, and that the group has about 200 members carefully screened by the organization to ensure they are not pyramid schemes and don't use deceptive practices.


The Federal Trade Commission agrees there are legitimate MLMs. The difference between a legitimate business and pyramid scheme comes down to products.


If the company and its distributors make money primarily from the sale of products to end-users (and not boxes of product accumulating in a distributor's garage), it's OK.


By contrast, a pyramid scheme compensates those at the top of the pyramid with participation fees paid by those recruited at the bottom. It eventually collapses when the scheme can't recruit more people.


But identifying a pyramid scheme can be difficult because MLMs typically have product sales, along with recruitment fees and recruitment incentives.


"It gets cloudy when you have a situation where you have fees being paid for both," said Monica Vaca, assistant director of the FTC's division of marketing practices. "It's very nuanced."


While prosecuting an MLM can seem somewhat of a judgment call, cases have a common factor: deceptive promises about how much money distributors will earn, Vaca said.


In the Fortune Hi-Tech Marketing case filed last month, C. Steven Baker, director of the FTC's Midwest region, said, "These defendants were promising people that if they worked hard they could make lots of money. But it was a rigged game, and the vast majority of people lost money."





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Hadiya Pendleton funeral: 'God is our refuge'









Slain teen Hadiya Pendleton was remembered today as a laughing youth who brought love and happiness to all her family and friends.

Despite the heavy security because of the attendance of first lady Michelle Obama and other dignitaries, Hadiya's funeral at the Greater Harvest Baptist Church only occasionally touched on politics and the gun violence that ended Hadiya's life, instead focusing on a 15-year-old girl whose smile lit up the room.

Her mother, Cleopatra Cowley-Pendleton, briefly spoke to the standing room only crowd, often with a smile and even a laugh.

“My baby did all this,’’ she said, wearing a big red flower on her chest and a sparkly scarf, and clearly enjoying the music. "This is all Hadiya.’’

“The outpouring of support has been absolutely amazing,’’ she said.
 
She explained that at points, “you kinda do not know how to act,’’ and some people might not understand “our sense of humor’’ or “why I have a smile on my face.’’

“But I’m not worried about her soul,’’ she said.

“I just want to say thank you. Thank you to everyone who had something to do with rounding her or having something to do with who she was,’’ she said.

Then appearing more serious, she said, “No mother, no father should ever have to experience this.’’

“I kept her living,’’ she said, saying she helped her daughter stay away from negative influences. "When your children try to talk to you, listen. Don’t judge them. This should be a judge-free zone. You made them. You deal with that."
 
“All right, I love you all,’’ she said before ending her remarks.

Earlier the crowd was addressed by Damon Stewart, Hadiya's godfather, who said, “I’m going to speak as if we’re family,’’ adding that he had “two spiritual thoughts’’ he wanted to stress.

“God makes no mistakes,’’ he said. “I don’t believe in coincidence; I believe in divine intervention.’’

Wearing a black suit and black shirt, he also wore purple in honor of Hadiya -- a purple tie and ribbon on his chest, and a purple handkerchief in chest pocket.
 
“I loved that child,’’ he said.

Stewart quoted Hadiya's father, Nathaniel Anthony Pendleton, as saying, "This isn't political, this is personal."

Then Stewart said: "This should break the hearts of everyone who has someone they love."

He said he read a Facebook post that said: "I'm not going to buy into the hype. What makes this girl so much better than the others?"

"She is important because all those other people who died are important," Stewart said. "She is important because all of the families who were silent, she speaks for them. She is a representative of the people across the nation who have lost their lives."

"Don't let this turn into a political thing. Keep it personal," he said. "A lot of politicians will try to wield it as a sword. They want to use it for votes."

While family and friends kept the focus on the 15-year-old girl who was shot dead in a South Side park, the first lady's appearance inevitably brought attention to anti-gun efforts nationwide.

The back of the funeral program has a copy of a handwritten note from President Barack Obama: "Dear Cleopatra and Nathaniel, Michelle and I just wanted you to know how heartbroken we are to have heard about Hadiya's passing. We know that no words from us can soothe the pain, but rest assured that we are praying for you, and that we will continue to work as hard as we can to end this senseless violence. God Bless.”

In addition to Michelle Obama, dignitaries in the crowd included Gov. Pat Quinn, Mayor Rahm Emanuel, Cook County Board President Toni Preckwinkle, Ill. Attorney General Lisa Madigan, Rev. Jesse Jackson,  Secretary of Education Arne Duncan and Valerie Jarrett, senior adviser to Barack Obama.

Prior to the service, the first lady met privately with about 30 of Hadiya's friends and classmates, and then with members of Hadiya's family, according to a White House official.

Father Michael Pfleger spoke and called Hadiya an "innocent victim of gun violence,’’ asking,  “When did we lose our soul?”

He told the crowd that “we must become like Jesus’’ and become “the interrupters’’ of genocide, an evil that is killing our children.
 
“Welcome home, sweet Hadiya. See you on the other side," he said.

Hadiya was killed Jan. 29 at Harsh Park, in the 4400 block of South Oakenwald Avenue, not far from the Obama family home. Although Hadiya and the friends that were with her had no gang ties, a gunman fired into the park in what police said was a gang-connected shooting causing her death to become a symbol of Chicago's gun violence.

But most of the funeral service was about Hadiya's life, and the love she brought to so many.

Hadiya's pastor, Courtney C. Maxwell from the Greater Deliverance Temple Church of Christ, opened the services about 11:15 a.m. after a heart-shaped balloon was placed near her casket.
 
He thanked everyone for being at the Greater Harvest Baptist Church, including elected officials. “The family says thank you and God bless you.’’ He asked for round of applause for the Pendleton family.
 
“Only God can keep you and strengthen you, for God is our refuge and our strength,’’ the pastor said.

The pastor said Hadiya was “genuine and real.’’

“She was energetic, loved music, loved the arts,’’ the pastor said.

After the pastor spoke, a female reverend dressed in white addressed the crowd and a choir behind her began singing.

“Blessed are they that mourn, for they shall be comforted,’’ she said, as the choir sang after her.

An assistant pastor read from scriptures: "She is more precious than rubies. … Her ways are of pleasantness.’’

Pastor Elder Eric Thomas of the host Greater Harvest Baptist Church described Hadiya as a “beloved angel.’’
 
“Her life has not been in vain,’’ Thomas said.
 
A female singer and organist the played a religious song, as about 30 others in the choir, all dress in white, stood and swayed gently from side to side before the large cross that was draped in white.

Kenya Edwards, who identified herself as a radio personality and a friend, read a poem called “Walking’’ written for Hadiya by Zora Howard, then said: “Ladies and gentlemen, it’s time for us to start walking. It’s time to take a stand.’’

Hadiya’s aunt Linda Wilks then spoke, asking, “What was inside Hadiya that connected her to those who didn’t know her?”

“It was her inner light’’ that connected her with humanity’s inner light, she said. “Light has power and has potent force,’’ and can cause "mankind to feel an inner awakening and a sense of love.’’

“Light can pursue darkness ... it diffuses darkness,’’
her aunt said. "Hadiya. The light.’’

Several girls who all identified themselves as Hadiya’s best friends got up, one by one, to share warm and funny and very sad memories.
 
One girl, Kaylen Jones, drew laughter when she said Hadiya’s mom “guilted me’’ into talking, then said one of the things she will remember most is Hadiya's smile.
 
“That smile lit up a room’’ she said. “It was the last thing I saw before they put her into the ambulance.’’

“I loved her. These past few weeks I felt like there’s a part of me missing,’’ Jones said.

“But she’s right here, whispering the answers to us in chemistry,’’ she said, drawing huge laughs and applause.
 
Another girlfriend, Giselle, was holding a tissue and broke down in tears, having to stop at least twice during her thoughts.
 
“Hadiya always pushed me to do my very best,’’ she said, wiping her eyes. “We were going to go to college together.’’

Giselle said after losing Hadiya she had tweeted to friends "I just wanted a last hug," and two days later "I had a dream that she gave me a hug."

“I believe that she came back and gave me a last hug,’’ she said.
 
Many others remembered her laughter and her smile. Others had short songs they sang to the crowd and shared favorite memories of her.
 
Her King College Prep majorette team also got up, and presented her jacket in a frame to Hadiya's mother, who embraced her in a long hug.
 
Kierrra Wilson, the captain of the majorette team, which had performed for festivities during the weekend before President Obama's second inauguration, spoke first.

“It’s really hard being up here,’’ she said. “Hadiya was close to all of us.’’

The entire team, dressed in their black and gold outfits, engaged in a group hug.
 
Another teammate also recalled the Washington trip, saying Hadiya never lost her sense of humor even though they were “so tired.’’

She said she would always remember Hadiya’s laughter, and told a story that caused the crowd to chuckle. “She tries to tell a scary story and nobody can believe it,’’ she said. "She had a little baby voice.’’


The service ended about 2:37 p.m. as pallbearers began to move the casket, covered in a white cloth emblazoned with a gold cross, and the choir continued singing.
 
“There's a new name written in glory,’’ one of the pastors said. “Thank you, God, for our angel Hadiya."

By 2:44 p.m. people were moving out of the church. The first lady left without comment.

Hundreds of mourners had lined up early today at the church in the Washington Park neighborhood, which was under tight security.

Guests who were invited by the family were given orange wristbands and were able to enter through a shorter security line. Classmates and friends of Pendleton were given green wristbands and allowed to enter through that same line.

Trinity Dishmon, 40, said her daughter Deja, 15, and Hadiya were close friends in middle school. The two girls stayed in touch and were texting about their upcoming 16th birthdays while Hadiya was in D.C. for the president's inauguration in January.

"Hadiya was a gift to everyone that knew her," Dishmon said, tearing up. "These last 12 days have been unbelievably numbing. It's not six degrees of separation anymore, it's one. It's just unreal."

Dishmon said she feared that the day was less about the teenager and more about a larger issue.

"This is Hadiya's day and should be about her -- not something sensational," Dishmon said. "But maybe by honoring her life we can help make a difference."

Inside the church, Hadiya’s silver casket was placed in the front, surrounded by flowers and two large hearts, one with her picture on it. Behind the casket, a TV screen showed pictures of Hadiya with her family, from birth to her teenage years.

A funeral director wearing a suit and white gloves came outside at 9:40 a.m. to announce to the hundreds still waiting in line that the church was “at capacity.” Those still in line could come in and view the body, he said, but would have to leave before the services.

The funeral procession arrived at about 9:45 a.m., including three limousines and dozens of cars.

The first lady’s motorcade pulled into the church parking lot at about 10:15 a.m. She went in through a separate side entrance at the rear of the church, stepping directly from a vehicle into the building.

The family filed down the aisle a little after 10 a.m. and viewed the body in the still open casket. The pastor led the procession down the aisle chanting "the Lord is my shepherd" as soft organ music played in the background.

Ushers walked down the aisle handing out tissues, and those without wristbands were asked to give up their seats so that family members could be seated in the sanctuary. Every seat was filled by 9:45 a.m.

Purple, Hadiya’s favorite color, is represented in many of the flowers in the church and the lining of her casket. Ushers handed out a glossy funeral program booklet printed on purple paper. The front cover says "Celebrating The Life Of ... Hadiya Zaymara Pendleton.” Inside are more than 50 photos of Hadiya throughout her life.
 
Her obituary printed in the booklet describes her work in the church and even her favorite foods: Chinese, cheeseburgers, ice cream and Fig Newtons. It includes tributes from her grandmother, her cousin and an aunt as well as close friends.

About 10:15 a.m., the funeral director came back out and announced to the hundreds still waiting in line that no one else would be allowed inside — not for the viewing or the funeral.

Even after those outside were told they would not be allowed in, many continued to gather around the church's front gate.

Some began to file out, having to hop over the metal barricades to exit the long line.

One man asked the funeral staff member if he could at least have a pamphlet from the funeral before he left.

"Oh sir, those are long gone. They only printed 1,500," the funeral staff member said.

Activists, religious groups and others passed out printed material to those standing in line. Some kept the papers, others were left on the snowy ground as some of the crowd left.


A group of people who were not allowed inside the church after it reached capacity stood outside in the freezing weather for hours as the funeral went on.

Police put up additional barricades near the church entrance gate to keep new people arriving back.

At 2 p.m. a few peopple trickled out of the church, including a handful of King College Prep majorettes. Police were not allowing anyone else in for the service, even as people left.

Some had been standing outside for hours, hunched over in the cold. The group continued to talk as the hours passed.

A number of police cars circled the block during funeral services -- including officers in vans, SUVs and undercover cars. Helicopters could be seen and heard overhead.

Michelle Obama's attendance puts Chicago solidly in the middle of a national debate over gun violence that has polarized Congress and forced President Obama to take his gun control initiatives on the road to garner more public support.

The first lady's visit is being seen not only as a gesture of condolence to the family but as part of an effort to draw attention and support for the president's gun initiatives.

But the visit also meant scores of security, police and Secret Service agents, metal detectors and other security measures.

The church is surrounded by an iron fence and all of the openings -- a pedestrian gate in the front, front and side doors to the church, and a driveway to the north -- are guarded by city police or men in white shirts, ties and long black coats. Chicago police vehicles -- two wagons, a handful of squads and SUVs -- guarded the outside of the church while other vehicles circle the block.

Chicago police staffing the event are wearing dress blues -- a blue overcoat with pockets that allow access to the duty belt, creased navy pants, and a hat.

King College Prep math and engineering teacher Alonzo Hoskins stood quietly in line with others. He said he taught Hadiya in his first-period geometry class, where he now has an empty desk.

"She was full of life," Hoskins said.

Nate Weathers, 16,  Jeramy Brown, 16, and Antoine Fuller, 15, all stood in line to see their former classmate. The three young men said they attended Carter G. Woodson Middle School with Hadiya.

“This tears me up,” Fuller said. “She was my 7th grade crush.”

Brown described Hadiya as “sweet and innocent.”

“Something like this should have never happened to her,” Brown said.








Police took two men into custody after they got into an altercation near the back of the long line of mourners waiting to get into the church. One man was agitated, complaining about the long wait to get in. A second man confronted him and they began shoving each other before police intervened.


Local and national pool reports contributed.

chicagobreaking@tribune.com


Twitter: @chicagobreaking 



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Rosenthal: Chevrolet restores style to Impala name








Because a brand embedded in our subconsciousness can find a space in our garage, the Impala endures.


About 16 million Chevys named for an African antelope have hit the road since 1958. And even though the one you recently returned to the airport rental lot bore little resemblance the one whose "giddy-up" the Beach Boys sang of a half-century ago, General Motors is betting the bloodline still can claim hearts.


A revamped 10th-generation 2014 model is now on display at the just-opened 105th Chicago Auto Show as a prelude to its dealership debut in a few weeks, a bid to re-establish its good name.






"It's always been a great brand name," Russ Clark, director of Chevrolet marketing, said alongside one of the made-over Impalas on the Auto Show floor at McCormick Place. "In fact, when we did research on the name, we found Impala is one of the strongest in terms of consideration and favorable opinion of any name in the industry. A lot of that is heritage. A lot of it is the fact that people say, 'I know people who have had them, and everybody loved them.'"


The brand has been ubiquitous for decades, even if you don't remember the Beach Boys immortalizing the vintage growl of a "four-speed dual-quad Posi-Traction 409" or how Robert Blake's 1970s TV tough guy Baretta drove a rusted-out Impala from '66, the era when Chevrolet could move about 1 million Impala sedans and station wagons a year. My own first car was a four-door V-8 '72 Impala, a powerful and roomy hand-me-down whose weather-beaten body — like the brand's identity — clearly had seen better days by the late '70s and early '80s.


More recent Impalas have hardly been the stuff of song, and it's hard to imagine them inspiring nostalgia. They've been too dully utilitarian to be iconic.


Nonetheless, although sales have slowed, it has been the overall best-seller among big sedans. Three-quarters of those sales have been as fleet vehicles for corporate salespeople, government agencies and rental companies. That means the premium has been on space, reliability and keeping costs down rather than the kind of panache and extras that might foster pride of ownership.


The goal of this Impala overhaul in both four- and six-cylinder iterations — drafting on similar nameplate revivals for models such as Ford's Taurus, Dodge's Charger and Chrysler's 300 — is to flip that 75-25 ratio of fleet sales to retail on its head.


"It makes perfectly good sense on General Motors' part to finally put some style back in the Impala," auto industry analyst Art Spinella, president of CNW Research, explained. "If you have a great brand name, to almost toss it off, treat it as an orphan and send it off to the fleet sales department with bland styling and cheap interiors, that's a disgrace. What they've done is kind of salvage themselves with this.


"It's finally dawned on General Motors that you can sell a consumer car to fleets, but you can't sell a fleet car to consumers. You always keep fleet cars (looking) relatively obscure and you keep the price way down, and that's what General Motors had been doing for years to keep the (Impala sales) volume up. Now they're taking another look. I don't think they've necessarily gone far enough, but it's a step in the right direction."


To wander through the vast Auto Show, which runs through Feb. 18, is to be reminded of how deeply many of us connect to vehicles, starting as children playing with toy trucks and cars. There's a teenage rite of passage when car keys and a license expand the world. Certain makes and models mesh with what played on their radios, the places traveled in them, the stage of life they marked.


That emotional bond doesn't form so easily with a mere box with wheels.


"What was it that made us fall in love with cars in the first place?" Henrik Fisker, executive chairman and co-founder of high-end hybrid carmaker Fisker Automotive, asked the crowd at Thursday's Economic Club of Chicago luncheon. "It struck me that most of us, when we really start to get our heart pumping about cars, it's usually not the cars of today. It's usually the cars of the '50s and '60s."


Road salt, slush and rain were my old '72 Impala's kryptonite. In time, its front bench seat reclined like a La-Z-Boy whenever I hit the gas because the floor beneath had rusted through. Whatever my affection for the vehicle, I could see the road we were on — literally and figuratively — both looking ahead and glancing down.


Thirty years after I traded it in for a sporty red Pontiac with seats that reclined only how and when I wanted, I would not have expected my old flame to generate much heat.


Carmakers, like most marketers, know that even when a brand is disconnected from what it once represented, it still can resonate. The new Impala is neither the muscular car of old nor the generic conveyance of late. Yet Impala means something to would-be buyers, and good or bad, it gives them something to measure this latest version against.


"They have equity in the name and you never get rid of a brand that has a good reputation," Spinella said. "Some people will buy it because it's an Impala. Some people won't. But they'll look at it because it's an Impala and they remember the Impala. It's easier to reintroduce a name than to introduce a name nobody knows."


I can still remember driving around with my friends with no particular place to go, a song on the radio about a horse with no name. If there was a tune about a nameless car, I don't recall it.


philrosenthal@tribune.com


Twitter @phil_rosenthal






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Blizzard begins to slam Northeast









A blizzard blew into the Northeast on Friday, cutting short the workweek for millions who feared being stranded as state officials ordered roads closed ahead of what could be record-setting snowfall.

Authorities scrambled to prepare for the storm, which had already resulted in a massive traffic pile-up in southern Maine and prompted organizers of the nation's sledding championship in Maine to postpone a race scheduled for Saturday, fearing too much snow for the competition.






From New York to Maine, the storm began gently, dropping a light dusting of snow, but officials urged residents to stay home, rather than risk getting stuck in deep drifts when the storm kicks up later Friday afternoon.

Even in its early stages, the storm created some panic. Drivers lined up at gas stations to top off their tanks, grocery stores were swamped as shoppers stocked up on bread and milk, and travelers were forced to confront flight delays and cancellations.

With the worst of the storm yet to come, the governors of Massachusetts, Rhode Island and Connecticut declared states of emergency and issued bans on driving by early Friday afternoon.

“The rate of snowfall and reduced visibility during the evening rush hour in particular will make safe travel nearly impossible,” Massachusetts Governor Deval Patrick told reporters.

The early edge of the storm led to a 19-vehicle pile-up in southern Maine, snarling traffic on a major interstate highway north of Portland. No major injuries were reported. A smaller accident briefly closed an interstate near Bolton, Vermont.

“It was close to whiteout conditions, it's sort of a precursor of what's coming later,” said Stephen McCausland, a spokesman for the Maine State Police.

Officials across the region closed schools and more than 3,000 flights were canceled. Several thousand customers lost power in New Jersey and points south, though officials warned the number was likely to rise as the snowfall got heavier and winds picked up.

Governors and mayors ordered nonessential government workers to stay home, urged private employers to do the same, told people to prepare for power outages and encouraged them to check on elderly or disabled neighbors.

The light snow falling across much of New England on Friday morning was a taste of the weather to come, said Jerry Paul, senior meteorologist with Weather Insight, a unit of Thomson Reuters.

“That's going to be gradually building today as time goes on,” Paul said.

A wide swath of New England, including northeastern Connecticut, Providence, Rhode Island, and the Boston area, will likely see 24 inches to 30 inches of snow, with some areas seeing more than three feet by the time the storm ends on Saturday morning, Paul added.

At the storm's peak, winds could gust up to 65 miles per hour, he said.

Boston's record snowfall, 27.6 inches, came in 2003.

CHEERING ON STORM

Organizers of the country's championship sledding race, that had been scheduled to get underway in Camden, Maine, on Saturday, postponed the event by one day.

“As soon as the weather clears on Saturday and it is safe, the toboggan committee will be out at Tobagganville cleaning up the chute as quickly as they can,” said Holly Edwards, chairman of the U.S. National Toboggan Championships. “It needs to be shoveled out by hand.”

Some 400 teams were registered for the race, which features costumed sledders on a 400-foot  chute.

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The New Old Age: The Executor's Assistant

I’m serving as executor for my father’s estate, a role few of us are prepared for until we’re playing it, so I was grateful when the mail brought “The American Bar Association Guide to Wills and Estates” — the fourth edition of a handbook the A.B.A. began publishing in 1995.

This is a legal universe, I’m learning, in which every step — even with a small, simple estate that owes no taxes and includes no real estate or trusts — turns out to be at least 30 percent more complicated than expected.

If my dad had been wealthy or owned a business, or if we faced a challenge to his will, I would have turned the whole matter over to an estate lawyer by now. But even then, it would be helpful to know what the lawyer was talking about. The A.B.A. guide would help.

Written with surprising clarity (hey, they’re lawyers), it maps out all kinds of questions and decisions to consider and explains the many ways to leave property to one’s heirs. Updated from the third edition in 2009, the guide not only talks taxes and trusts, but also offers counsel for same-sex couples and unconventional families.

If you want to permit your second husband to live in the family home until he dies, but then guarantee that the house reverts to the children of your first marriage, the guide tells you how a “life estate” works. It explains what is taxable and what isn’t, and discusses how to choose executors and trustees. It lists lots of resources and concludes with an estate-planning checklist.

In general, the A.B.A. intends its guide for the person trying to put his or her affairs in order, more than for family members trying to figure out how to proceed after someone has died. But many of us will play both these parts at some point (and if you are already an executor, or have been, please tell us how that has gone, and mention your state). We’ll need this information.

Editor’s Note: More information about “The American Bar Association Guide to Wills and Estates” can be found here.


Paula Span is the author of “When the Time Comes: Families With Aging Parents Share Their Struggles and Solutions.”

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S&C relay at center of Super Bowl outage









An electrical relay device provided by Rogers Park's S&C Electric Co. was found to be the cause of the Super Bowl power outage in New Orleans, the company acknowledged Friday.

S&C Electric Co. said the outage, which lasted for more than 30 minutes at Sunday's game, was due to the demand for Superdome stadium power needs exceeding a "trip setting" for an electrical relay it supplied.

The device was specifically designed to prevent an outage if a cable connection to the stadium failed. Testing since the game has revealed that a higher power setting would have prevented the equipment from causing the disconnection, S&C said in a statement.

S&C doesn’t control the power settings on the equipment it provides.

"S&C continues to work with all those involved to get the system back online, and our customers can continue to rely on the quality and performance of our products," Spokesman Michael Edmonds said in a statement.

S&C equipment is commonly used where high reliability is critical, he said, including data centers for United Parcel Service Inc., drug manufacturing centers and hospitals. The company also works with other stadiums throughout the U.S. and Canada.

The power provider for Sunday's game, Entergy New Orleans, a unit of Entergy Corp., said the relay device had functioned properly at other high-profile sporting events, including the Sugar Bowl.

The device has since been removed and replacement equipment is being examined, Entergy said in a statement.

That statement came before a special meeting of the New Orleans City Council's Utility Committee Friday morning to discuss the root cause of the outage.

Immediately after the game, Entergy indicated its equipment was functional and the problem must have come from the Superdome, but later said it was launching an investigation to determine the source of the problem.

"While some further analysis remains, we believe we have identified and remedied the cause of the power outage and regret the interruption that occurred during what was a showcase event for the city and state," Entergy New Orleans President and CEO Charles Rice said.

sbomkamp@tribune.com | Twitter: @SamWillTravel



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Michelle Obama to attend funeral for Hadiya Pendleton

Michelle Obama will attend the funeral of Hadiya Pendleton.








WASHINGTON -- First lady Michelle Obama plans to attend Saturday’s funeral in Chicago for 15-year-old slaying victim Hadiya Pendleton, according to a White House official who asked not to be named.

Pendleton, an honor student at King College Prep, was fatally shot last week about a mile from the Obamas’ Kenwood home. A majorette with the school band, she had participated in inaugural festivities near Washington about a week before her death.

The first lady is not expected to make public remarks during her visit, and the Obamas’ daughters, Malia and Sasha, are not expected to accompany their mother.

Scheduled to speak at the funeral is Gov. Pat Quinn, who mentioned Pendleton during his annual State of the State speech on Wednesday as he called for tougher gun control measures. Quinn said he spoke to the teen’s family this week.
 
"There are no words in the English language, or any language, to relieve the pain of parents who lose a child," said Quinn, who has two adult sons.
 
The White House official who confirmed Michelle Obama’s plans said that senior adviser Valerie Jarrett and Secretary of Education Arne Duncan will also attend the funeral. Both are Chicagoans.

Community activists had urged the Obamas to come to Chicago to speak out about recent violence. A petition on the White House website had called on the Obamas to attend Pendleton’s funeral.

The president reached out to the family last week to offer his condolences, according to people close to the family. Early on, the family had expressed concern that the president’s attendance would overshadow the funeral and make it difficult for Pendleton’s many friends to say their goodbyes to her.

After learning today that the first lady planned to attend, Shatira Wilks, a cousin who serves as the family’s spokesperson, said they are still committed to making the funeral a celebration of the teen’s life.

“It’s a nice gesture and we appreciate it,” Wilks said. “But that is who we are.”

Those close to the family said the parents are still trying to come to grips with what has happened.

“It’s a lot to take in. It’s an overwhelming experience,” said LaKeisha Stewart, Hadiya’s godmother. “We are very thankful the people are coming to support the family. We realize that this young lady has touched a lot of people and this goes beyond us.”

Pendleton was killed at Harsh Park on Jan. 29, near the end of the deadliest January for Chicago homicides in a decade. There is a $40,000 reward for information that leads to an arrest in the teen’s death. 


Visitation is scheduled for 2 to 9 p.m. Friday in Calahan Funeral Home at 7030 S. Halsted St. On Saturday, the wake continues at 9 a.m. followed by the funeral at 11 a.m. in Greater Harvest Baptist Church, 5141 S. State St.


Tribune reporters Katherine Skiba and Monique Garcia contributed to this report.
 
dglanton@tribune.com
khennessey@tribune.com






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Well: The 'Monday Morning' Medical Screaming Match

I did not think I would ever see another “morbidity and mortality” conference in which senior doctors publicly attacked their younger colleagues for making medical errors. These types of heated meetings were commonplace when I was a medical student but have largely been abandoned.

Yet here they were again on “Monday Mornings,” a new medical drama on the TNT network, based on a novel by Dr. Sanjay Gupta, CNN’s chief medical correspondent and one of the executive producers of the show. Such screaming matches may make for good television, but it is useful to review why new strategies have emerged for dealing with medical mistakes.

So-called M&M conferences emerged in the early 20th century as a way for physicians to review cases that had either surprising outcomes or had somehow gone wrong. Although the format varied among institutions and departments, surgery M&Ms were especially known for their confrontations, as more experienced surgeons often browbeat younger doctors into admitting their errors and promising to never make them again.

Such conferences were generally closed door — that is, attended only by physicians. Errors were a private matter not to be shared with other hospital staff, let alone patients and families.

But in the late 1970s, a sociology graduate student named Charles L. Bosk gained access to the surgery department at the University of Chicago. His resultant 1979 book, “Forgive and Remember,” was one of the earliest public discussions of how the medical profession addressed its mistakes.

Dr. Bosk developed a helpful terminology. Technical and judgment errors by surgeons could be forgiven, but only if they were remembered and subsequently prevented by those who committed them. Normative errors, which called into question the moral character of the culprit, were unacceptable and potentially jeopardized careers.

Although Dr. Bosk’s book was more observational than proscriptive, his depiction of M&M conferences was disturbing. I remember attending a urology M&M as a medical student in which several senior physicians berated a very well-meaning and competent intern for a perceived mistake. The intern seemed to take it very well, but my fellow students and I were shaken by the event, asking how such hostility could be conducive to learning.

There were lots of angry accusations in the surgical M&Ms in the pilot episode of “Monday Mornings.” In one case, a senior doctor excoriated a colleague who had given Tylenol to a woman with hip pain who turned out to have cancer. “You allowed metastatic cancer to run amok for four months!” he screamed.

If this was what Dr. Bosk would have called a judgment error, the next case raised moral issues. A neurosurgeon had operated on a boy’s brain tumor without doing a complete family history, which would have revealed a disorder of blood clotting. The boy bled to death on the operating table. “The boy died,” announced the head surgeon, “because of a doctor’s arrogance.”

In one respect, it is good to see that the doctors in charge were so concerned. But as the study of medical errors expanded in the 1990s, researchers found that the likelihood of being blamed led physicians to conceal their errors. Meanwhile, although doctors who attended such conferences might indeed not make the exact same mistakes that had been discussed, it was far from clear that M&Ms were the best way to address the larger problem of medical errors, which, according to a 1999 study, killed close to 100,000 Americans annually.

Eventually, experts recommended a “systems approach” to medical errors, similar to what had been developed by the airline industry. The idea was to look at the root causes of errors and to devise systems to prevent them. Was there a way, for example, to ensure that the woman with the hip problem would return to medical care when the Tylenol did not help? Or could operations not be allowed to occur until a complete family history was in the chart? Increasingly, hospitals have put in systems, such as preoperative checklists and computer warnings, that successfully prevent medical errors.

Another key component of the systems approach is to reduce the emphasis on blame. Even the best doctors make mistakes. Impugning them publicly — or even privately — can make them clam up. But if errors are seen as resulting from inadequate systems, physicians and other health professionals should be more willing to speak up.

Of course, the systems approach is not perfect. Studies continue to show that physicians conceal their mistakes. And elaborate systems for preventing errors can at times interfere with getting things done in the hospital.

Finally, it is important not to entirely remove the issue of responsibility. Sad to say, there still are physicians who are careless and others who are arrogant. Even if today’s M&M conferences rarely involve screaming, supervising physicians need to let such colleagues know that these types of behaviors are unacceptable.


Barron H. Lerner, M.D., professor of medicine at New York University Langone Medical Center, is the author, most recently, of “One for the Road: Drunk Driving Since 1900.”
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EveryBlock shuts down









Hyper local news and social media site EveryBlock.com has shut down, the company said Thursday.


"Though EveryBlock has been able to build an engaged community over the years, we're faced with the decision to wrap things up," a item on the EveryBlock.com blog said.


The posting said Everyblock faced increasing challenges to build a profitable business. It had 10 employees, including President Brian Addison.








The company was founded in 2007 by Naperville native Adrian Holovaty and acquired by MSNBC.com in 2009. NBC News acquired MSNBC.com last year.


NBC News Chief Digital Officer Vivian Schiller said EveryBlock's financial losses "were considerable," although she declined to offer specific financial results.


"Hyper local is a very tough business. This isn't about anything being a failure, but more about our need to stay focused on the strengths of NBC News' digital portfolio," she added in an email.


Schiller said the company looked for various options for EveryBlock, such as a sale, but none of the options ended up being viable.


"EveryBlock was among the more innovative and ambitious journalism projects at a time when journalism desperately needed innovation and ambition. RIP," Holovaty wrote Thursday in a blog post on his site Holovaty.com.


Holovaty wrote that he believes EveryBlock, founded with the help of a $1.1 million grant from the John S. and James L. Knight Foundation, was a successful attempt to push innovation in newspapers and journalism.


"It was a great site, beautifully designed and lovingly crafted. It made a difference for people, particularly in Chicago," he wrote.


Holovaty left the site in August to pursue other interests.


Hyper local sites in general have surged in popularity in recent years, but with the success came an explosion of competitors, making generating revenue extremely difficult. In 2007, about 1 in 8 Americans lived in a town with a local blog, according to data from Placeblogger.com, which indexes local weblogs. Today, more than half do.


Still, limited revenue streams make for a shaky future.


"Most of these companies have the structural integrity of a wet cardboard box," said Lisa Williams, Placeblogger's founder and CEO.


Williams said the sudden shutdown of EveryBlock and others like highlights the boom-and-bust cycles in technology businesses, but also underscores the impatience of the big companies who acquire them.


"Whenever someone invests in you there's always a ticking clock attached to money," she said. "It's a very high-turn business. You have to either get big or get out."


In the Chicago area, hyper local news has proved itself to be a competitive and challenging niche, with both local and out-of-town organizations trying to gain traction.


The Chicago News Cooperative, which had a publishing deal with the New York Times, closed down in 2012 after a little more than two years. AOL's Patch has had a rough time, with one investor estimating last year that the national collection of hyperlocal sites, including dozens in Illinois, lost $147 million in 2011.


Tribune Co.  partnered last year with Journatic, a Chicago-based company, to provide hyperlocal content for the Chicago Tribune's TribLocal.  Tribune Co. then suspended Journatic over ethical lapses, and after a lengthy investigation resumed limited use of Journatic with added safeguards.


The Chicago Tribune also at one time hosted a search box on its web site that directed readers to EveryBlock data.


sbomkamp@tribune.com | Twitter: @SamWillTravel





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Quinn wants minimum wage hike, assault weapons ban









Illinois Gov. Pat Quinn today called on lawmakers to raise the minimum wage, ban assault weapons, allow online voter registration in an annual State of the State speech that sounded a lot like the launch of his 2014 re-election campaign.


Returning to the populist notes that have defined his political career, Quinn laid out a series of choices in a 13-page speech.


“Do we want, in the years to come, a prosperous Illinois where working people continue to have good jobs, where businesses thrive, and where all our children have a world-class education?” Quinn told the House and Senate. “Or do we want to stop the progresss and watch our economic recovery stall?”





Quinn wants Illinois' minimum wage to increase from $8.25 to $10 an hour over the next four years. The federal minimum wage is $7.25 an hour, but Illinois' rate has been higher for years. Business groups are likely to oppose such a change.


The Democratic governor also reiterate his support for gay marriage.

Quinn called for a statewide ban on assault weapons and the sale of high-capacity ammunition magazines. He wants to strengthen background checks and require gun owners to report lost or stolen guns to avoid so-called “straw purchasers.”


The governor also offered some of what he wants as the state moves toward allowing conceal carry following a federal appellate ruling that tossed out the state’s long standing ban.


“Of course, we must abide with the second amendment. But there is no place in our state for military-style assault weapons designed for rapid fire at human targets at close range,” he said. “We must ensure that guns are kept out of everyday public places, because guns don’t belong in our schools, shopping malls, or sports stadiums.”


Elections also was a theme as the governor seeks to allow voters to register online. That could draw criticism from Republicans, who often cry foul about Democratic voting efforts in Chicago.


Quinn also revisited a proposal he has long supported: Asking lawmakers to pass legislation allowing for an open primary in which voters would not have to declare their political party before casting a ballot.


The idea is to increase voter participation, and it comes as Democrats and Republicans alike have begun to shift their focus to the 2014 governor's race. One of Quinn's potential Democratic rivals, former White House chief of staff Bill Daley, recently suggested that Illinois do away with partisan primary elections.


Quinn hopes to seize on a new legislature that may be more willing to consider the idea. In 2010, he tried to push the issue by using his amendatory veto power to rewrite a bill to allow voters to declare their party affiliation privately, but the attempt was rebuffed by legislators.


Political parties historically have opposed open primaries because the elections act as a form of membership drive. By requiring voters to declare a political affiliation in order to vote in primaries, they can create voter lists used to drive fundraising and guide get-out-the-vote efforts.


Quinn also touched on the state's budget woes, specifically the growing pension debt that is pegged at almost $97 billion. Quinn contends that while a lot has been done to turn around the state's economy, it will never fully recover unless legislators pass sweeping reforms to bring the retirement system out of the red.


Quinn has been unsuccessfully pushing since placing it at the top of his priority list during last year's speech.


The governor has backed various proposals, most recently throwing his support behind hybrid legislation sponsored by Senate President John Cullerton, D-Chicago. The measure is an attempt to combine proposals put forth by legislators in the House and the Senate, which have had differing ideas on how to tackle the problem.


Cullerton has said he wants a vote on the measure as soon as possible, but acknowledged it may take time to build support. Those efforts may get a boost next month, when Quinn is expected to lay out his budget plan, which the administration has already warned will include cuts given the pressure pensions have put on spending priorities.


Quinn’s quest to boost the minimum wage comes right out of the Democratic playbook of his predecessor, Rod Blagojevich, while wooing blue-collar labor at the same time. The two Blagojevich campaigns for governor used the minimum wage as a fruitful way to woo the hearts of the state’s minimum wage earners through basic pocketbook politics, often underscoring the point while on the stump in minority and working-class neighborhoods.


The issue fell into a Democratic agenda when Blagojevich, the first Democratic governor in a quarter century, entered office with Democratic majorities in the House and Senate. Only months after he won election, Blagojevich pressed forward with his campaign pledge and passed increases that boosted the minimum wage at that time from $5.15 to $6.50 an hour by 2005, the year before he ran for re-election.


After winning re-election, he pushed through more increases that gradually pushed the state’s minimum wage to current levels.


In his own 2010 campaign, Quinn said Illinois’ minimum wage should be increased every year to reflect the rising cost of living. The position put him sharply at odds with Republican challenger Bill Brady, a Bloomington senator who dismissed Quinn’s campaign position as “populist demagoguery.”


Brady initially supported lowering the minimum wage if he beat Quinn and the state rate remained higher than the federal rate—a posture that prompted Quinn’s campaign to contend Brady wanted to “turn back the clock.” Eventually, Brady said the state minimum wage should hold steady to let the federal minimum wage catch up.


The speech marked Quinn's fourth State of the State address since assuming office after lawmakers impeached and removed ex-Gov. Rod Blagojevich, who is serving a 14-year sentence in a Colorado prison following his conviction on federal corruption charges.


Quinn had been out of public sight for nearly a week as he wrote and rehearsed the speech. The governor once again used a teleprompter after his 2010 off-the-cuff address drew criticism as being rambling and unfocused.


rlong@tribune.com


mcgarcia@tribune.com


raguerrero2@aol.com


Twitter @RayLong


Twitter @moniquegarcia



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