Promise, peril seen for crowd-funding investors

Crowd funding is widely seen as a revolutionary idea.

A 2012 federal law known as the JOBS Act opens the door to allowing small, privately owned businesses to market ownership stakes in their ventures to people over the Internet.

Companies will be able to sell up to $1 million in equity a year to ordinary investors without having to register the offering with the Securities and Exchange Commission or state regulators.

Before the average person can use crowd funding to stake a claim in a startup, the SEC still must draft rules that the Obama administration hopes will result in U.S. businesses growing and adding jobs. At the same time, the securities cop needs to include safeguards that protect less sophisticated individual investors drawn to inherently risky startups.

That's why equity crowd funding under JOBS, or Jumpstart our Business Startups, has some longtime regulators and securities lawyers squirming.

"It can be an invitation for fraudsters to steal money," Matthew Brown, a Katten Muchin Rosenman lawyer, said last month at a CFA Society of Chicago event at 1871, a center for digital startups in Chicago.

But Brown also noted that equity crowd funding also democratizes small-business financing, a process that historically has given access mostly to wealthier — or, as they're known in high-finance circles, "accredited" — investors.

"The world has changed dramatically, and who's to say who is smarter than anyone else?" Brown added.

Many existing crowd-funding platforms such as Kickstarter don't sell equity stakes in businesses to average investors. Rather, they give consumers the chance to donate money to an enterprise or to get an early or discounted crack at a new product. Since Kickstarter's launch in April 2009, more than $450 million has been pledged by more than 3 million people funding more than 35,000 projects, the New York-based company's website says.

Their acceptance suggests that consumers are willing to engage with companies on a deeper level. As such, enabling unaccredited consumers to invest in companies in small increments online has promise and could become part of the fundraising "ecosystem," says one Chicago entrepreneur.

Abe's Market, a Chicago-based e-commerce site selling natural and organic products from more than 1,000 suppliers, said it would consider crowd funding under the JOBS Act, saying it and its vendors have "die-hard fans" and "a core group of customers" who might like to invest in their vision.

Last month, Abe's raised $5 million from Carmel Ventures, Index Ventures, Beringea and Accel Partners, a Groupon backer. New backers include OurCrowd, a crowd-funding site for accredited investors.

"If you can get passionate people to invest in your business, you're not just gaining investors, you're gaining evangelists," Abe's Chief Executive Richard Demb said. "The challenge for any consumer brand is: How do you find not just customers, but the right customers who are going to tell their friends?"

But there would also be potential headaches for companies raising equity financing through crowd funding, he said.

"You have to make sure that expectations would be set fairly, that no one is putting their life savings into the investment, and that they don't also come back and become a challenge to manage as the business grows," Demb said. "You don't want someone who invested $250 to come back and say, 'I don't think we should expand to the West Coast.'"

Safeguards for average investors exist in the JOBS Act. They include capping nonaccredited individuals' crowd-funding investments at $2,000, or 5 percent of annual income or net worth of less than $100,000, whichever is greater.

Snapclass, launched a few weeks ago at 1871, provides software enabling businesses to provide training online. Co-founder Scott Mandel, who has financed the company himself, doesn't expect to take advantage of equity crowd funding in the future and instead would seek, say, venture capital funding.

"Not all checks are the same," said Mandel, previously a trader and professional poker player. "I'd want someone who could add more than just the cash, such as connections and experience and help with things that I'm not an expert in."

One of 1871's fastest-growing startups is MarkITx. It recently raised $1.2 million from wealthy individuals in its first fundraising round, has seven employees and is looking to add sales jobs. It's an online exchange for businesses wanting to buy and sell used information technology equipment, from iPads to Oracle servers.

"For us, it wouldn't be the sole way to raise money, but it definitely is a viable vehicle to look at raising money," MarkITx partner Marc Brooks said of equity crowd funding under the JOBS Act.

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Owner visits 'playful and crazy' dog rescued from icy lake

Pifas, a "very playful and crazy" dog rescued from icy Lake Michigan, saw his owner today and "started jumping around in the cage" at the animal control facility.

But even though Pifas is in good health after Friday's frigid ordeal, his owner Nerijus Steponavicius will have to wait to claim his pet from the Department of Animal Care and Control because city law says the 3-year-old dog must be neutered before being released.

A kayaker helped police and fire personnel rescue Pifas from Lake Michigan in the Rogers Park neighborhood Friday afternoon – more than a week after Steponavicius says the dog ran away from home.

Late Saturday morning the pup was in good condition, according to ACC spokesman Brad Powers.

"The dog has no serious medical injuries," Powers said at the Southwest Side ACC facility.

After ownership has been verified, a final medical exam is performed at which point any needed vaccines will be given, a city dog license issued and a microchip is placed on the animal, said Powers. Additionally, by city oridinance, this dog will have to be neutered, Powers said.

The earliest Pifas would be ready to go home would be Sunday, the day after surgery, said Powers.

Steponavicius got the news when he arrived at ACC shortly past noon Saturday. Volunteers guided him and others searching to reclaim lost dogs through rows of kennels at the animal shelter until he found his 3-year-old companion.

“He’s really shy, so when he saw me he started jumping around in the cage,” Steponavicius said with a huge smile.

But since Steponavicius has to wait for Pifas' surgery, he walked out of the building holding Pifas’ red leash, bunched together in his left hand.

Steponavicius said he was disappointed he couldn’t take the dog home right away, as he made plans for Pifas to play with his parents’ two Labrador retrievers this afternoon. However, he said he was just glad his dog was safe.

“He’s never done anything like this before,” Steponavicius said. “When he walks with me, he can be off the leash.”

Steponavicius described his dog as “very playful and crazy” and said all he ever wants to do is “play ball.”

Steponavicius didn’t see the video of Pifas bouncing across the ice and swimming in the frigid lake Friday afternoon but said he’s looking forward to watching his dog on TV.

Steponavicius first went to the shelter Friday evening to try to claim his Nova Scotia duck tolling retriever, but was told he would have to return during business hours on Saturday.

Divers were already on the North Side pulling a woman in her 20s out of the lake downtown when someone spotted the stricken dog about 3:20 p.m. Friday off Loyola Park, according to a police Marine Unit officer.

The dog was almost a half a mile out and had likely gotten there because the ice was shifting after the slightly warmer temperatures that day, the officer said.

First, a helicopter was sent to the scene and hovered above to ensure it was a dog and not a coyote. Also, the air movement and sound from the helicopter's rotors sometimes spurs an animal to move, hopefully closer to shore, the officer said. Chicago Fire Department crews were also sent to the scene, and a fire boat pursued the dog for a short time.

But as rescuers were setting up a spool with a thick lifesaving line that can extend several hundred meters to enable a diver harnessed to it to crawl out on the ice, a man on a kayak pitched in, the officer said.

He paddled through the ice chunks toward the dog, coaxing it.

"I just kept encouraging him," said the kayaker, Dave Kehnast, in an interview with WGN-TV.  " 'Here boy, here boy,' and he wanted to bite me! So I kind of just kept on him" until the dog headed to shore.

The dog then made its way through the ice and water, swimming safely to shore, the officer said. The entire incident lasted about an hour.

Other city workers helped corral the frightened dog in an alley near Pratt Boulevard and Sheridan Road once it was on shore.

"It was a concerted effort with the help of the police, the Chicago Fire Department, and the citizen," the officer said.

Steponavicius told WGN-TV the dog ran off when his landlord changed the locks at his home on Feb. 13.

"I still don't understand what happened" and how the dog ended up in Rogers Park, Steponavicius said.

Steponavicius started getting calls about Pifas while several local TV stations were covering the rescue efforts, including broadcasting live footage on the Internet.

It's understandable that Kehnast had difficulty getting Pifas to come to land, as the dog is skittish, Steponavicius told WGN-TV.

"He is a very shy, very shy dog, so if you or anyone would try to come to him, he would run away," Steponavicius said.

Steponavicius now hopes to buy Kehnast dinner – after Pifas is retrieved from Animal Care and Control.

It was a busy afternoon for the Marine Unit. Just before the dog was rescued, about 2:50 p.m., crews rushed to the waters off Promontory Point in the South Side's Hyde Park neighborhood, where a man had walked out onto the ice. He did not fall into the water and was able to get back to shore, the officer said.

Marine Unit divers also helped a woman, who was rescued from the water off the 900 block of North Lake Shore Drive, the officer said. She was taken to Northwestern Memorial Hospital suffering from hypothermia. Her condition was not life-threatening, the officer said.

The officer said caution should be used when the lake is iced over.

"People should not go on the ice," the officer warned. "The ice is cracking in a lot of spots."

Tribune reporter Bridget Doyle contributed.

rsobol@tribune.com 

Twitter: @RosemarySobol1

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Oscars expand social media outreach for 85th show

LOS ANGELES (AP) — The Academy of Motion Picture Arts and Sciences is encouraging celebrities to tweet during the Oscars.

The film organization has expanded its digital outreach for the 85th Academy Awards with a new feature that lets stars to snap photos of themselves backstage during Sunday’s ceremony and instantly post them online.

What Twitter calls a “Magic Mirror” will take photo-booth-style pictures of participating stars in the green room and send them out on the academy’s official Twitter account. Organizers expect multiple celebrity mash-ups.

The backstage green room is a private place for stars to hang out before taking the stage and is typically closed to press and photographers.

The Magic Mirror is “giving access to fans at home a part of the show they never got to experience before,” Twitter spokeswoman Elaine Filadelfo said Friday.

A new video-on-demand/instant replay feature also being introduced Sunday will allow Oscar fans to view show highlights online moments after they happen and share them with friends on Twitter and Facebook. Dozens of clips from the red carpet and the awards telecast will be available on the official Oscar website beyond Sunday’s ceremony.

Oscar.com also offers other behind-the-scenes interactive features, including various backstage camera perspectives and a new live blog that aggregates the show’s presence across social media. It will track the traffic on whatever makes a splash, like Angelina Jolie’s right leg did last year.

The academy wants to make its second-screen experience just as rich as its primary one.

“Social media is now mainstream,” said Christina Kounelias, chief marketing officer for the academy.

“We’re not doing social media to reach out to young kids,” said the academy’s digital media director, Josh Spector. “We’re doing it to connect with all Oscar fans.”

___

Follow AP Entertainment Writer Sandy Cohen on Twitter: www.twitter.com/APSandy.

___

Online:

www.oscar.com

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Drone Pilots Found to Get Stress Disorders Much as Those in Combat Do

U.S. Air Force/Master Sgt. Steve Horton

Capt. Richard Koll, left, and Airman First Class Mike Eulo monitored a drone aircraft after launching it in Iraq.

The study affirms a growing body of research finding health hazards even for those piloting machines from bases far from actual combat zones.

“Though it might be thousands of miles from the battlefield, this work still involves tough stressors and has tough consequences for those crews,” said Peter W. Singer, a scholar at the Brookings Institution who has written extensively about drones. He was not involved in the new research.

That study, by the Armed Forces Health Surveillance Center, which analyzes health trends among military personnel, did not try to explain the sources of mental health problems among drone pilots.

But Air Force officials and independent experts have suggested several potential causes, among them witnessing combat violence on live video feeds, working in isolation or under inflexible shift hours, juggling the simultaneous demands of home life with combat operations and dealing with intense stress because of crew shortages.

“Remotely piloted aircraft pilots may stare at the same piece of ground for days,” said Jean Lin Otto, an epidemiologist who was a co-author of the study. “They witness the carnage. Manned aircraft pilots don’t do that. They get out of there as soon as possible.”

Dr. Otto said she had begun the study expecting that drone pilots would actually have a higher rate of mental health problems because of the unique pressures of their job.

Since 2008, the number of pilots of remotely piloted aircraft — the Air Force’s preferred term for drones — has grown fourfold, to nearly 1,300. The Air Force is now training more pilots for its drones than for its fighter jets and bombers combined. And by 2015, it expects to have more drone pilots than bomber pilots, although fighter pilots will remain a larger group.

Those figures do not include drones operated by the C.I.A. in counterterrorism operations over Pakistan, Yemen and other countries.

The Pentagon has begun taking steps to keep pace with the rapid expansion of drone operations. It recently created a new medal to honor troops involved in both drone warfare and cyberwarfare. And the Air Force has expanded access to chaplains and therapists for drone operators, said Col. William M. Tart, who commanded remotely piloted aircraft crews at Creech Air Force Base in Nevada.

The Air Force has also conducted research into the health issues of drone crew members. In a 2011 survey of nearly 840 drone operators, it found that 46 percent of Reaper and Predator pilots, and 48 percent of Global Hawk sensor operators, reported “high operational stress.” Those crews cited long hours and frequent shift changes as major causes.

That study found the stress among drone operators to be much higher than that reported by Air Force members in logistics or support jobs. But it did not compare the stress levels of the drone operators with those of traditional pilots.

The new study looked at the electronic health records of 709 drone pilots and 5,256 manned aircraft pilots between October 2003 and December 2011. Those records included information about clinical diagnoses by medical professionals and not just self-reported symptoms.

After analyzing diagnosis and treatment records, the researchers initially found that the drone pilots had higher incidence rates for 12 conditions, including anxiety disorder, depressive disorder, post-traumatic stress disorder, substance abuse and suicidal ideation.

But after the data were adjusted for age, number of deployments, time in service and history of previous mental health problems, the rates were similar, said Dr. Otto, who was scheduled to present her findings in Arizona on Saturday at a conference of the American College of Preventive Medicine.

The study also found that the incidence rates of mental heath problems among drone pilots spiked in 2009. Dr. Otto speculated that the increase might have been the result of intense pressure on pilots during the Iraq surge in the preceding years.

The study found that pilots of both manned and unmanned aircraft had lower rates of mental health problems than other Air Force personnel. But Dr. Otto conceded that her study might underestimate problems among both manned and unmanned aircraft pilots, who may feel pressure not to report mental health symptoms to doctors out of fears that they will be grounded.

She said she planned to conduct two follow-up studies: one that tries to compensate for possible underreporting of mental health problems by pilots and another that analyzes mental health issues among sensor operators, who control drone cameras while sitting next to the pilots.

“The increasing use of remotely piloted aircraft for war fighting as well as humanitarian relief should prompt increased surveillance,” she said.

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16 airport investors show interest in Midway

An international array of airport investors and operators have shown interest in developing bids to privatize Midway Airport, the city announced Friday evening.

Sixteen parties responded to the city's "request for qualifications" by a 4 p.m. deadline, indicating they had interest in leasing, operating and improving the Southwest Side airport, the nation's 26th busiest, with about 9 million passengers passing through annually.

"The response generated from the  ... process is encouraging and provides the city with a sense of the strong level of interest in a potential lease," said Lois Scott, the city's chief financial officer. "We must evaluate fully if this could be a win for Chicagoans."

The city and its advisers will review the responses to identify qualified potential bidders.

Of the 16, seven had both the operational and financial capabilities sought in the RFQ. The city identified them as:

-- ACO Investment Group, an investor and operator with global airport experience.

-- AMP Capital Investors Limited, a manager and investor in airports, including Melbourne Airport in Australia and Newcastle Airport, in Britain.

--  Corporacion America Group, an Argentina-based airport operator with 49 airports in seven countries.

-- Global Infrastructure Partners (GIP), which is the controlling investor and active manager of London City Airport, London Gatwick Airport and Edinburgh Airport.

--Great Lakes Airport Alliance, which is a partnership of Macquarie Infrastructure and Real Assets and Ferrovial. Its airport operations include London's Heathrow, Brussels Airport and Copenhagen Airport.

-- Incheon International Airport and Hastings Funds Management, which is the sole owner and operator of Incheon International Airport in South Korea and an investor with 16 airport-related investments.

--  Industry Funds Management and Manchester Airport Group, an investor with interests in 13 airports, including Melbourne Airport and Brisbane Airport, both in Australia, and operator of Manchester Airport and East Midlands Airport, in Britain.

If the city moves forward and seeks proposals, a privatization plan could be submitted to the City Council this summer.

This is the second time Chicago has looked at privatizing Midway. A 99-year lease that would have brought in $2.5 billion died in 2009 when the financial markets froze. That deal had drawn six serious bidders.

Mayor Rahm Emanuel has said any second attempt would have to provide city taxpayers with a better deal than the widely criticized 75-year agreement to privatize parking meter operations, carried out during former Mayor Richard Daley's administration. Proceeds from the earlier deal were used to plug operating deficits, and meter rates rose sharply.

This time, proposed leases must be less than 40 years, which locks in the city for a shorter period.

Rather than making only an upfront payment, the private operator also must share revenue with the city on an ongoing basis. Initial proceeds would be used to pay down debt issued since 1996 to rebuild the airport, the mayor's office said. There is about $1.4 billion in outstanding debt.

Longer term, cash flow would be directed to city infrastructure needs. The mayor has pledged proceeds would not be used to pay for city operations.

kbergen@tribune.com

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Drew Peterson transferred from Will County jail to Stateville

Drew Peterson’s new life as an Illinois Department of Corrections inmate has begun.

Peterson was transferred this morning to the Stateville Correctional Center near Crest Hill,  where he will be evaluated for placement based upon factors such as his conviction, length of sentence, program needs and medical and mental health requirements.

The Will County jail – which has held Peterson in solitary confinement since his May 2009 arrest for his own safety – had the paperwork prepared for his transfer by the time he returned from his sentencing hearing Thursday, officials said.

The sheriff’s department, which oversees the jail, kept the former Bolingbrook police sergeant segregated from the general population there amid concerns that his high-profile case and law-enforcement background would make him a target of inmates looking to build tough-guy reputations.

Jail supervisors began preparing Peterson at 8:30 a.m. and he left without incident by 9:22 a.m., officials said.

Drew Peterson wanted to make sure he was heard when he was given one last chance to speak Thursday, shortly before being sentenced to 38 years in prison for the murder of his third wife, Kathleen Savio.

Declining to speak from the defense table, where there was no microphone, the former Bolingbrook police sergeant shuffled to the witness stand in his jail-issued blue scrubs and orange shoes and began quietly.

"I hope I don't aggravate the situation," he turned and told the judge. Then Peterson screamed into the microphone, "I did not kill Kathleen!" startling almost everyone in the courtroom.

"Yes, you did!" Savio's sister Sue Doman yelled back from the gallery, prompting Will County Circuit Judge Edward Burmila to order her out of the courtroom.

It was an odd end to a case replete with oddities and circuslike sideshows. For the next 40 minutes, Peterson cried, raged and whispered, challenged the state's attorney to look him in the eye and indulged in self-pity as he unleashed his multitudinous thoughts like a character in a Dostoevsky novel.

The 59-year-old said he expects to die in prison. Barring any successful appeal, he won't be eligible for release until he's 93.

Peterson claimed that lies and mistakes by witnesses, prosecutors and police led to his conviction, and made disparaging remarks about Savio's family, attorneys and others involved in the case. His defense attorneys called the monologue an impassioned plea for leniency, but prosecutors said it was proof that Peterson is a psychopath.

"When he got up on the stand and (in) that shrill, kinda-feminine screech that he didn't kill Kathy — that's the guy that killed Kathy," Will County State's Attorney James Glasgow said. "You got a glimpse into his soul."

But in describing himself on the stand Thursday, Peterson said he was maligned and misunderstood.

"Until this happened, I thought I was viewed as a great guy," Peterson said, giving a litany of public and private good deeds before announcing he planned to tattoo the phrase "No good deed goes unpunished" across his shoulders.

"The state took an accident and staged a homicide," Peterson said, before turning to the judge. "Can I get some water?"

Once refreshed, Peterson said he had upheld the oath he swore when he became a police officer.

"I always took my job seriously, I never violated the public trust," he said, his voice husky with emotion before quoting one of the Ten Commandments. "And I never beared false witness against anyone."

"I think the only thing left to make this case run true to form," he told Burmila, stopping to take a tissue and wipe his nose, "would be a cruel and unusual punishment. And I don't think anybody would care, because nobody cares. I can't believe I spent 32 years defending a constitution that allowed this to happen to me."

It's not uncommon for a defendant to lash out against those who put them behind bars. It is rare, however, for defendant to offer a long, extemperaneous speech that both walks the court through the evidence and ilicits angry outbursts from the victims' families.

Peterson accused the state's attorney's office, state police, Savio's family and even Lifetime TV of being part of various conspiracies to wrongfully convict him. Last year, Lifetime TV aired a movie about Peterson with Rob Lowe playing the suburban police officer. Peterson said the "ridiculous movie" denied him a right to a fair trial and included statements he'd made to state police.

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Jay-Z, Timberlake announce summer tour

NEW YORK (Reuters) – Rapper Jay-Z and Justin Timberlake are teaming up for a 12-city summer stadium tour that will include concerts in New York, Los Angeles, San Francisco and Chicago, music promoter Live Nation said on Friday.

The “Legends of the Summer” tour will kick off at the Roger’s Center in Toronto on July 17, and finish on August 16 at the Sun Life Stadium in Miami.

Venues in Boston, Detroit and Baltimore will also be included in the tour.

Earlier this week Live Nation said the duo, who together have won 23 Grammy awards and two Emmys and have sold 67 million albums, will also be performing together in London at the Wireless Festival on July 12-13.

Timberlake’s new album, “The 20/20 Experience,” which will be released next month, features “Suit & Tie,” a collaboration with Jay-Z. The two performed a duet together at the Grammy Awards earlier this month.

(Reporting by Noreen O’Donnell; Editing by Patricia Reaney and Vicki Allen)

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Question Mark: Acne Common in Baby Boomers Too

Pimples are no surprise on babies and teenagers, but boomers?

You no longer have to gaze over a school lunchroom, hoping to find a seat at a socially acceptable table. You don’t rush to get home at night before your junior license driving restrictions kick in. And you men no longer have to worry that your voice will skip an octave without warning.

But if adolescence is over, what is that horrid protuberance staring at you in the mirror from the middle of your forehead? Some speak of papules, pustules and nodules, but we will use the technical term: zit. That thing on your forehead now is the same thing that was there back in high school, or at least a close relative. Same as it ever was (cue “Once in a Lifetime”).

We get more than the occasional complaint here from baby boomers who want to know about this aging body part or that. So you would think people would be happy with any emblem of youth — even if it is sore and angry-looking and threatening to erupt at any second. But oddly, there are those who are not happy to see pimples again, and some have asked for an explanation.

Acne occurs when the follicles that connect the pores of the skin to oil glands become clogged with a mixture of hair, oils and skin cells, and bacteria in the plug causes swelling, experts say. A pimple grows as the plug breaks down.

According to the American Academy of Dermatology, a growing number of women in their 30s, 40s, 50s and even beyond are seeking treatment for acne. Middle-age men are also susceptible to breakouts, but less so, experts say.

In some cases, people suffer from acne that began in their teenage years and never really went away. Others had problems when they were younger and then enjoyed decades of mostly clear skin. Still others never had much of the way of pimples until they were older.

Whichever the case, the explanation for adult acne is likely to be the same as it is for acne found in teenagers and, for that matter, newborns: hormonal changes. “We know that all acne is hormonally driven and hormonally sensitive,” said Dr. Bethanee J. Schlosser, an assistant professor of dermatology at Northwestern.

Among baby boomers, the approach of menopause may result in a drop in estrogen, a hormone that can help keep pimples from forming, and increased levels of androgens, the male hormone. Women who stop taking birth control pills may also see a drop in their estrogen levels.

Debate remains over what role diet plays in acne. Some experts say that foods once thought to cause pimples, like chocolate, are probably not a problem. Still, while sugar itself is no longer believed to contribute to acne, some doctors think that foods with a high glycemic index – meaning they quickly elevate glucose in the body — might. White bread and sweetened cereals are examples. And for all ages, stress has also been found to play a role.

One message to acne sufferers has not changed over the years. Your mother was right: don’t pop it! It can cause scarring.

Questions about aging? E-mail boomerwhy@nytimes.com

Booming: Living Through the Middle Ages offers news and commentary about baby boomers, anchored by Michael Winerip. You can follow Booming via RSS here or visit nytimes.com/booming. You can reach us by e-mail at booming@nytimes.com.

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United not planning on Dreamliner until June

The All Nippon Airways Dreamliner 787 arrives at Mineta San Jose International Airport. (Gary Reyes/San Jose Mercury News/MCT / January 22, 2013)

Staff and wire report

1:35 p.m. CST, February 21, 2013

The parent company of United Airlines says it is taking the Boeing 787 off its schedule through June 5 for all but one of its routes.

United Continental Holdings Inc. said it still plans to use the 787 on its flights between Denver and Tokyo's Narita airport starting May 12. It had aimed to start that route on March 31.

United, currently world's largest airline and the only U.S. customer for the 787, said the timing of that reinstatement will depend on resolution of the Dreamliner's current issues.

The 50 Dreamliners in commercial service were grounded worldwide last month after a series of battery-related incidents including a fire on board a parked plane in the United States and an in-flight problem on another jet in Japan. United had only been flying the plance since November.

Sources told Reuters earlier this week that Boeing Co. has found a way to fix the battery problems that involves increasing the space between the lithium ion battery cells.

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Drew Peterson faces sentencing: 'He showed no remorse'

Kathleen Savio's relatives talked of heartbreak and suffering as a sentencing hearing got underway today after Drew Peterson was denied a new trial for Savio's murder in 2004.

“My loss of my baby sister is beyond words. There will be no more birthday parties, backyard gatherings, holiday celebrations or other family activities to share,” Savio’s sister Anna Marie Savio-Doman said. “The laughter, hugs, guidance, advice, sense of security and those opportunities to say, ‘I love you’ are forever gone.

“One of the hardest things for me is knowing the pain and fear that Kathleen must have suffered at the time of her murder. The horror and betrayal she must have felt when she realized that someone she had trusted and loved more than anything was actually killing her. I wonder if she could feel her heart breaking when she thought about leaving her two boys forever. The helplessness she must have felt knowing she was going to die.

“I have to say it hurts a lot. I hope it gets better, but I am not confident it will get better. I still talk to her. I hope she can hear me.”

Susan Doman described her sister as a “rock” and told the court she looked up to Savio, even though Savio was younger. She also expressed her anger toward Peterson.

“He showed no remorse,” she said. “For years I watched Peterson parade on TV, radio, photo shoots, and (that) radio promotion to win a date with him. That was a big joke to him. And he loved all the attention.

“Your honor, the defendant shows no remorse to this day for the horrible crime that he did to my sister Kathleen. This senseless action is inexcusable. I am placing my trust that you will give Kathleen justice once and for all.”

The judge also read a statement from Savio’s father, but not aloud.

Peterson, 59, was convicted last fall of drowning his third wife in her bathtub. The former Bolingbrook police sergeant faces 20-60 years in prison.

In arguing for a maximum sentence, Will County State’s Attorney James Glasgow reminded the judge about the damage done to his young children with Peterson’s missing fourth wife, Stacy. Prosecutors have said they believe Peterson killed Stacy and could seek charges in that case.

"Not only is their mother gone, but also their father is gone, as he sits before you," Glasgow said.

Glasgow said Peterson also should not get a break for living a law abiding life because of his attacks on his second wife, when he threatened to kill her.

"There's a recurring them here with Mr. Peterson. He’s a police officer, and there's a number of occurrences with the victims here being afraid to call the police department.

"These are obviously very dangerous situation, and in this case, led to the demise of two young women."

Peterson’s second wife, Vikki Montgomery, in 1992, woke up in the middle of the night and found him standing over her, staring at her.

"You want to terrorize a women, that's how you do it. You let her know that any time, any place, she's yours. And that's what he did."

Glasgow noted that Peterson has a letter from a women's shelter thanking him for assisting victims of domestic violence.

"'It is apparent that you take domestic violence as a terrible criminal act,'" Glasgow said, quoting the letter. "It is incredibly ironic that this is in his packet, when his actions in his private life were completely the opposite case."

Glasgow said that Peterson, as a police officer, had a duty to serve and protect other people, but instead abused his authority and used it to intimidate, cause harm and cover up his actions.

"Obviously he violated that oath at the highest level. He betrayed the public trust, the sacred trust. And that, judge, is what I think you can place the highest weight on when you contemplate an appropriate sentence in this case.

"This sentence needs to send a very strong message that...this breach of trust continually throughout his career will not be tolerated.

"We would ask for a sentence in the higher range of what is available," Glasgow said.

Defense attorney Joseph Lopez then argued for a lenient sentence for his client.

Lopez reminded the judge that Peterson will have to serve 100 percent of his sentence, not a percentage of it. And he reminded the judge that the primary goal of prison is "restoring a person to useful citizenship."

"Another goal of sentencing, as the court knows, is deterrence," Lopez said.

But crimes committed by jealous lovers or spouses happen all the time, and sending Peterson, who maintains his innocence, to prison for the rest of his life won't stop that, Lopez said.

"This is as old as the beginning of the birth of emotions such as jealously and rage," Lopez said. "It's not going to have any deterrent, because it happens over and over again."

Lopez said that even a 20 year sentence -- the minimum in this case -- may be a life sentence for Peterson.

The fact that Peterson has no prior criminal history, either as a juvenile or an adult, is a reason for the judge to consider a lower sentence, Lopez said.

"The state is right: Drew has led a law abiding life until this moment, or I should say, until the moment he was convicted," he said. "But Drew has done some good things in his life."

He began working for Burger King at age 15, then a shoe store, and then entered the U.S. Army after a stint in junior college studying law enforcement. He attained the rank of Private E-4 before he was honorably discharged as a military police officer, Lopez said.

He applied for job with Bolingbrook Police Department in 1975 while still in the Army, and after he was hired, gained a reputation as a thorough investigator who was willing to help less experienced officers, Lopez said.

Even Glasgow commended him in a 1994 letter thanking him for his efforts that led to the conviction of a man who killed his wife, Lopez said.

"Professionally, on the street, Mr. Peterson was a good police officer.

"He did this for 30 years, and that has to be something that the court takes into consideration."

"Every couple has arguments, and some are more volatile than others," he said, referring to Peterson's alleged attacks on his second wife, Victoria Connelly, and Savio prior to her death. 

He argued that the judge should not make too much of that, noting that some couples handle disputes differently than others.

Lopez also said the judge should look at Peterson's relationships with his children, one of whom -- Tom -- testified on his father's behalf at trial. Kathleen Savio is Tom’s mother.

"Drew loved his children more than he hated any of the women in this case," Lopez said. "He would never do anything to hurt his children."

And Drew is not going to commit any other crimes and still maintains Savio's death was an accident, Lopez said.

"There's still no physical evidence that Drew Peterson did anything to Kathy Savio."

Lopez argued that an excessive sentence would create great hardship for his children.

"They'd be deprived of having any real relationship with their father," he said. "If the court gave him a sentence of 20, (the younger) children would be adults by the time he gets out of prison.

"Some people might argue he has only himself to blame, it's his fault...they can argue that all they want, but it still hurts the children."

Defense attorneys had argued their client deserved a new trial because former lead attorney Joel Brodsky’s inept performance violated Peterson’s right to a fair trial. But Judge Edward Burmila denied their motion this afternoon after two days of arguments.

"It was clear to the court from the very beginning that Mr. Brodsky was out of his depth," Burmila said. But the judge noted that Peterson was represented by five other attorneys. "Each of these attorneys brought something to the table."

As they entered the courthouse this afternoon, Peterson’s attorneys had expressed confidence they would be granted a new trial. Attorneys David Peilet and Steve Greenberg said their arguments regarding ineffective counsel and conflict of interest were powerful reasons to grant a new trial.

“I’m not much of a prognosticator, but if we don’t get a new trial here, we’ll get one from the next court,” said Greenberg.

The hearing on a motion for a new trial began Tuesday and centered primarily on Brodsky's trial decision to call Wheaton divorce attorney Harry Smith, who represented Savio in her bitter divorce fight with Peterson and also fielded a call from Stacy about her divorce options shortly before she vanished.

Smith testified at trial that Stacy had asked him if the fact that Peterson killed his third wife could be used as leverage in a divorce.

Several jurors said after trial that the testimony convinced them of Peterson's guilt. There was no physical evidence tying Peterson to Savio's death, which was initially treated as an accident.

“It was an awful decision,” defense attorney Steve Greenberg argued in court. “It ruined the case -- we brought out the worst possible evidence, and the best evidence for the state.”

mwalberg@tribune.com

sschmadeke@tribune.com

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