Showing posts with label chief. Show all posts
Showing posts with label chief. Show all posts

Saturday, May 21, 2011

Ex-IMF chief gets $1M bail in NYC sex assault case

See it on TV? Check here.AP  By JENNIFER PELTZ and TOM HAYSNEW YORK -- The court discourse surrounding former International Monetary Fund chief Dominique Strauss-Kahn is less than a week old but has already turned into a case of invoking the infamous.

Prosecutors have brought up Roman Polanski, the French filmmaker whom U.S. authorities pursued for decades after he jumped bail in a 1977 child sex case. Defense lawyers have mentioned Bernard Madoff, the financier who was freed on $10 million bail before admitting he was behind a multibillion-dollar Ponzi scheme. And that's in just two court dates discussing whether to allow bail for Strauss-Kahn, the onetime potential French presidential contender charged with sexually attacking a New York City hotel maid. He denies the allegations.

After Strauss-Kahn spent nearly a week in police custody and then jail, a judge agreed Thursday to free him on $1 million cash bail plus an additional $5 million bond - provided he's confined to a New York apartment, under armed guard and electronic monitoring.

He wasn't immediately released from the city's bleak Rikers Island jail, where he had been kept in protective custody and on a suicide watch. But his lawyers expect he'll get out Friday, after he posts the bond and authorities review the security arrangements involved in his house arrest.

The 62-year-old French economist and diplomat briefly wore an expression of relief after state Supreme Court Justice Michael J.

Obus announced his decision in a packed courtroom. Later, Strauss-Kahn blew a kiss toward his wife.

Strauss-Kahn didn't speak during the court proceeding. But as he headed back to jail for what he hoped would be a final night, lawyer William W. Taylor called the bail decision "a great relief for the family" and said Strauss-Kahn's mindset was "much better now than before we started."

The ex-IMF head is accused of attacking a 32-year-old housekeeper Saturday in his $3,000-a-night hotel suite. The West African immigrant told police he chased her down a hallway in the suite, forced her to perform oral sex and tried to remove her stockings.

"The proof against him is substantial. It is continuing to grow every day as the investigation continues," Manhattan assistant district attorney John "Artie" McConnell told the judge Thursday as prosecutors announced that Strauss-Kahn had been indicted on charges including attempted rape and a criminal sex act.

The indictment, a crucial procedural step in a felony case, marked a grand jury's "determination that the evidence supports the commission of non-consensual, forced sexual acts," District Attorney Cyrus R. Vance Jr. said. Strauss-Kahn, whose lawyers have suggested evidence won't support a forcible encounter, is due back in court June 6.

The bail decision came less than a day after Strauss-Kahn resigned as managing director of the IMF, the powerful organization that makes emergency loans to countries in financial crisis.

In his resignation letter, he denied the allegations against him but said he would quit in order to "protect this institution which I have served with honor and devotion" and to "devote all my strength, all my time and all my energy to proving my innocence."

Prosecutors had argued against his release, citing the violent nature of the alleged offenses and saying his wealth and international connections would make it easy for him to flee.

At his arraignment Monday, a prosecutor suggested that if Strauss-Kahn were released and ran, he could end up "just like Roman Polanski," whom the Swiss government declined to extradite last year in the child sex case in the U.S. in which he had jumped bail decades ago.

On Thursday, defense lawyers offered a notorious example of their own: Madoff, the fraudulent financier who stole billions of dollars from investors. Before Madoff pleaded guilty in the federal case and was sentenced to 150 years in prison in 2009, he was freed on $10 million bail, under house arrest and private guard provided by the same firm Strauss-Kahn's lawyers have proposed to monitor him. Taylor cited Madoff as he noted in court that "there have been other high-profile cases where (defendants) have been released."

Taylor called the proposed arrangement "the most restrictive possible conditions," although he suggested few precautions were necessary.

"In our view, no bail is required to confirm Mr. Strauss-Kahn's appearance. He is an honorable man. He will appear in this court and anywhere else the court directs, and he has only one interest at this time, and that is to clear his name," Taylor said.

A different judge had ordered Strauss-Kahn held without bail Monday; his lawyers subsequently added home confinement to their bail proposal. His wife, the French television journalist Anne Sinclair, has rented a Manhattan apartment for the couple, Taylor said.

Supreme Court Justice Michael J. Obus said the conditions played a major role in his decision to allow bail, but he warned Strauss-Kahn he might reconsider "if there is the slightest problem with your compliance."

Strauss-Kahn nodded in response. Dressed in a gray suit and an open-necked blue dress shirt, he had arrived stony-faced, though he turned to give a quick smile to his wife and daughter Camille, seated in the audience along with about 100 reporters. They and other journalists, lining a sidewalk below, formed the biggest media throng at the courthouse at least since Mark David Chapman was arrested in 1980 for killing John Lennon, court spokesman David Bookstaver said.

In France, a Socialist lawmaker and longtime Strauss-Kahn ally, Francois Pupponi, expressed relief at the decision to allow the former finance minister to leave jail. "There's finally a bit of good news in a terrible week," he said on BFM-TV. "We were no longer expecting good news."

The political wrangling over who will succeed Strauss-Kahn at the IMF already has begun. European officials, including Germany's chancellor, the European Commission and France's finance minister, have argued that his replacement should be a European.

Some authorities from China and Brazil have said it is time to break Europe's traditional dominance over the position and appoint someone from a developing nation. U.S. Treasury Secretary Timothy Geithner has asked for an "open process," without mentioning specific candidates.

---
Associated Press writers Karen Zraick, Colleen Long and David B. Caruso in New York and Elaine Ganley in Paris contributed to this report.

(Copyright ©2011 by The Associated Press. All Rights Reserved.)
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Friday, May 20, 2011

IMF chief resigns, will make new bid for bail

AP  By TOM HAYS and COLLEEN LONGNEW YORK -- Hours after Dominique Strauss-Kahn resigned from his post as manager of the International Monetary Fund - saying he felt compelled to focus his energy on the sexual assault charges he faces - the French politician will try to get out of one of America's most notorious jails.

Behind bars on Rikers Island since Monday, the beleaguered former IMF chief is scheduled to return to a Manhattan court Thursday afternoon to again ask for bail on charges he sexually assaulted a hotel maid - a move seemed certain to face vigorous opposition by prosecutors.

Late Wednesday, Strauss-Kahn resigned as managing director of the International Monetary Fund, according to a letter released by its executive board.

In the letter, Strauss-Kahn denied the allegations but said he felt compelled to resign with "great sadness" because he was thinking of his family and also wanted to protect the IMF.

In court papers filed by his defense team Wednesday, Strauss-Kahn said he had surrendered his passport and wouldn't flee the country. His attorneys proposed posting $1 million cash bail and confining him to the home of his daughter, Camille, a Columbia University graduate student, 24 hours a day with electronic monitoring.

Strauss-Kahn, 62, "is a loving husband and father, and a highly regarded diplomat, politician, lawyer, politician, economist and professor, with no criminal record," his attorneys wrote.

They had proposed similar conditions at an earlier bail hearing but added the promise of house arrest Wednesday. A judge denied him bail Monday.

Investigators have revisited to the penthouse hotel room to cut out a piece of carpet in a painstaking search for DNA evidence, law enforcement officials said Wednesday.

New York detectives and prosecutors believe the carpet in the hotel room may contain Strauss-Kahn's semen, spat out after an episode of forced oral sex, the officials told The Associated Press.

One of the officials said that the DNA testing was being "fast-tracked" but that the results could still be a few days away.

The two officials spoke to the AP on condition of anonymity because neither was authorized to speak about the case publicly and because it has gone to a grand jury.

The maid, a 32-year-old immigrant from the West African nation of Guinea, told police that Strauss-Kahn came out of the bathroom naked, chased her down, forced her to perform oral sex on him and tried to remove her underwear before she broke free and fled the room.

The AP does not identify alleged victims of sex crimes unless they agree to it.

Strauss-Kahn went from his $3,000-a-night hotel suite to an isolated cell block at Rikers normally reserved for patients with contagious diseases. Kept in protective custody and on a suicide watch, authorities said he ate his meals alone in a single cell and was escorted everywhere by prison guards.

Defense lawyers can raise the issue of bail as many times as they like, and it's common to make new proposals and try again after a client gets high or no bail, said Stuart P. Slotnick, a New York defense lawyer not involved in the case. Such attempts can succeed if a judge is persuaded that new information reduces the perceived risk that the person won't come back to court if released.

Living elsewhere is often seen as raising that risk, but it's not insurmountable, Slotnick said.

In a case like Strauss-Kahn's, bail "is not going to be a slam dunk, but if they can convince the judge that he's not a risk of flight, that he's going to come back, then he'll get bail," Slotnick said.

Manhattan prosecutors didn't immediately comment on the new bail motion.

Another hearing had been scheduled for Friday, the deadline for prosecutors to bring an indictment, agree to a preliminary hearing or release him.

In addition to examining the Sofitel Hotel suite for further potential DNA evidence, investigators were looking at the maid's keycard to determine whether she used it to enter the room, and how long she was there, officials said.

Police Commissioner Raymond Kelly declined to comment Wednesday on the details of the evidence-gathering but said results of any DNA and other testing have not yet come back. He said the detectives investigating the case found the maid's story believable.

"Obviously, the credibility of the complainant is a factor in cases of this nature," Kelly said. "One of the things they're trained to look for, and what was reported to me early on, was that the complainant was credible."

One of Strauss-Kahn's attorneys, Benjamin Brafman, said at his client's arraignment this week that the forensic evidence "will not be consistent with a forcible encounter." That led to speculation the defense would argue it was consensual sex.

The woman's lawyer, Jeffrey Shapiro, has dismissed suggestions from some of Strauss-Kahn's defenders that she made up the charges or tried to cover up a consensual encounter.

Strauss-Kahn is one of France's highest-profile politicians and was seen as a potential candidate for president in next year's elections. His arrest shocked France.

The scandal comes at a critical moment for the International Monetary Fund, which is trying to shore up teetering economies in Europe. The IMF is an immensely powerful agency that loans money to countries to stabilize the world economy. In exchange it often imposes strict austerity measures.

---
Associated Press writers Jennifer Peltz and Chris Hawley contributed to this report.

(Copyright ©2011 by The Associated Press. All Rights Reserved.) Get more New York News »


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Wednesday, May 18, 2011

TLC chief pushes for more outer borough taxis

  Eyewitness NewsNEW YORK (WABC) -- Taxi and Limousine commissioner David Yassky is pressing state lawmakers to approve 6,000 more taxi medallions for the city's outer boroughs.

The new medallions reportedly would go to cabs designated solely for street hails in Queens, Brooklyn, Staten Island and the Bronx.

The Taxi Workers Alliance says it has no problem with the idea, as long as the city charges less for medallions in those four boroughs. (Copyright ©2011 WABC-TV/DT. All Rights Reserved.) Get more New York News »


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IMF chief jailed without bail in NY hotel-sex case

AP  By JENNIFER PELTZNEW YORK -- Haggard and unshaven after a weekend in jail, the chief of the International Monetary Fund was denied release on bail Monday on charges of trying to rape a hotel maid as allegations of other, similar attacks by Dominique Strauss-Kahn began to emerge.

In France, a lawyer for a novelist said the writer is likely to file a criminal complaint accusing Strauss-Kahn of sexually assaulting her nine years ago. A French lawmaker accused him of attacking other maids in previous stays at the same luxury hotel.

And in New York, prosecutors said they are working to verify reports of at least one other case, which they suggested was overseas.

Strauss-Kahn's weekend arrest rocked the financial world as the IMF grapples with the European debt crisis, and upended French presidential politics. Strauss-Kahn, a member of France's Socialist party, was widely considered the strongest potential challenger next year to President Nicolas Sarkozy.

Making his first appearance on the sex charges, a grim-looking Strauss-Kahn stood slumped before a judge in a dark raincoat and open-collared shirt. The 62-year-old, silver-haired Strauss-Kahn said nothing as a lawyer professed his innocence and strove in vain to get him released on bail.

The judge ruled against him after prosecutors warned that the wealthy banker might flee to France and put himself beyond the reach of U.S. law like the filmmaker Roman Polanski.

"This battle has just begun," defense attorney Benjamin Brafman told scores of reporters outside the courthouse, adding that Strauss-Kahn might appeal the bail denial.

Strauss-Kahn is accused of attacking a maid who had gone in to clean his penthouse suite Saturday afternoon at a luxury hotel near Times Square. He is charged with attempted rape, sex abuse, a criminal sex act, unlawful imprisonment and forcible touching. The most serious charge carries five to 25 years in prison.

Strauss-Kahn, who has headed the international lending agency since 2007, was in New York on personal business and was paying his own way, so he cannot claim diplomatic immunity, the IMF said. He could seek that protection only if he were conducting official business, spokesman William Murray said. The agency's executive board met informally Monday for a report on the charges against Strauss-Kahn, its managing director.

The French newspaper Le Monde, citing people close to Strauss-Kahn, said he had reserved the $3,000-a-night suite at the Sofitel hotel for one night for a quick trip to have lunch with his daughter, who is studying in New York.

The 32-year-old maid told authorities that she thought the suite was empty but that Strauss-Kahn emerged from the bathroom naked, chased her down a hallway, pulled her into a bedroom and dragged her into a bathroom, police said.

He seized her breasts, tried to pull down her pantyhose, grabbed at her crotch and forced her to perform oral sex on him during the encounter at about noon, according to a court complaint. She ultimately broke free, escaped the room and told hotel staffers what had happened, authorities said. She was treated at a hospital for minor injuries.

"The victim provided a very powerful and detailed account of the violent sexual assault," Assistant District Attorney John "Ardie" McConnell said. He added that forensic evidence may support her account. Strauss-Kahn voluntarily submitted to a forensic examination Sunday night.

Brafman said defense lawyers believe the forensic evidence "will not be consistent with a forcible encounter." Defense lawyers wouldn't elaborate, but Brafman said "there are significant issues that were already found" that make it "quite likely that he will be ultimately be exonerated."

Prosecutors asked the judge to hold Strauss-Kahn without bail, noting that he lives in France, is wealthy, has an international job and was arrested on a Paris-bound plane at Kennedy Airport. He had left the Sofitel hotel before police arrived, leaving his cellphone behind, and appeared hurried on surveillance recordings, authorities said.

At one point, Strauss-Kahn called the hotel "in a panic" about the phone, a law enforcement official said Monday.

Hotel security officers hadn't found a phone, but they were instructed by NYPD investigators to set a trap by informing him they had it and asking where they could get it to him, said the official, who spoke on condition of anonymity because the investigation had not been completed.

Strauss-Kahn told them he was about to board a flight - unknowingly tipping off authorities to his whereabouts, the official said.

Prosecutors said they couldn't force Strauss-Kahn's return from France if he went there.

"He would be living openly and notoriously in France, just like Roman Polanski," said Chief Assistant District Attorney Daniel Alonso, referring to the film director long sought by California authorities for sentencing in a 1977 child sex case. Swiss police arrested him in 2009, but he was freed last year when Switzerland declined to extradite him to the United States.

Defense lawyers suggested bail be set at $1 million and promised that the IMF managing director would remain in New York City. His lawyers said Strauss-Kahn wasn't trying to elude police Saturday: The IMF head rushed out of the hotel at about 12:30 p.m. to get to a lunch date with a family member, then caught a flight for which he had long had a ticket, according to Brafman and fellow defense lawyer William W. Taylor.

"This is not a case of someone who commits a crime, runs to the airport and jumps on the first available plane," Brafman said.

Still, Criminal Court Judge Melissa C. Jackson said the fact that Strauss-Kahn was on a plane when arrested "raises some concerns." She ordered him jailed at least until a court proceeding on Friday.

Strauss-Kahn makes an annual tax-free salary as head of the IMF of $420,930, plus an annual "scale of living" allowance of $75,350, according to a 2007 IMF press release.

According to the 2000 biography "Les Vies Cachees de DSK" by Vincent Giret and Veronique Le Billon, Strauss-Kahn's wife, Anne Sinclair, was one of France's highest-paid TV journalists before she gave up her job to avoid a possible conflict of interest when her husband became a government minister in 1997. The biography says Sinclair is also a wealthy heiress, whose grandfather Paul Rosenberg was a prominent modern art dealer before the Second World War.

French newspapers have inventoried the couple's real estate holdings, which reportedly include a six-room apartment in Paris' chic 16th arrondissement; a 240-square-meter apartment on the luxurious Place des Vosges; a home in Marrakech, and a house in Washington.

Strauss-Khan will be held in protective custody in the city's Rikers Island jail because of his high profile, said city Correction Department spokesman Stephen Morello. Unlike some inmates, who share 50-bed barracks, Strauss-Kahn will have a single-bed cell and eat all his meals alone there. Also, when he is outside his cell, he will have a guard escort.

Meanwhile, a lawyer for 31-year-old French novelist Tristane Banon said she will probably file a complaint alleging Strauss-Kahn sexually attacked her in 2002. Lawyer David Koubbi told French radio RTL that Banon hadn't pressed her claim earlier because of "pressures" but would do so now because "she knows she'll be taken seriously."

The Associated Press is identifying Banon as an alleged victim of sexual assault because she has gone public with her account.

Banon's mother, Anne Mansouret, a regional Socialist official in Normandy, said she had advised her daughter at the time against pursuing her claim.

A French lawmaker from a rival political party also alleged, without offering evidence, that Strauss-Kahn had victimized several maids during past stays at the Sofitel near Times Square.

The hotel issued a statement calling conservative lawmaker Michel Debre's claims "baseless and defamatory." Sofitel management "has had no knowledge of any previous attempted aggressions," the hotel said, adding that it had set up a hotline for workers to report incidents more than a year ago.

McConnell, the assistant district attorney, said in court Monday that New York authorities are working to verify at least one other case of "conduct similar to the conduct alleged." When the judge asked whether the potential other incident occurred in the United States, McConnell said he "believed that was abroad."

Strauss-Kahn's lawyers said they had no immediate response to the allegations emerging from overseas.

In France, defenders of Strauss-Kahn, a former finance minister who had topped the polls as a possible candidate in presidential elections next year, said they suspected he was the victim of a smear campaign.

The 187-nation IMF provides emergency loans to countries in severe distress and tries to maintain global financial stability.

---
Associated Press writers Jamey Keaten in Paris, Chris Rugaber in Washington and Tom Hays in New York contributed to this report.

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Monday, May 16, 2011

Lawyer: IMF chief denies NYC sex-assault charges

AP  By COLLEEN LONGNEW YORK -- The leader of the International Monetary Fund, a possible candidate for president of France, was yanked from an airplane moments before it was to depart for Paris and arrested in the alleged sexual assault of a hotel maid, police said.

Dominique Strauss-Kahn, 62, was arrested on charges of a criminal sex act, attempted rape and unlawful imprisonment. He had been taken off the Air France flight at John F. Kennedy International Airport on Saturday afternoon by police officers.

Strauss-Kahn's lawyer, Benjamin Brafman, told The Associated Press that his client will plead not guilty at his expected Sunday afternoon arraignment.

"He denies all the charges against him," Brafman said. "And that's all I can really say right now."

France woke to the news Sunday with a measure of surprise.

Strauss-Kahn was expected to be the main challenger against President Nicolas Sarkozy, whose political fortunes have been flagging, in next year's presidential elections. The arrest could shake up the race and throw the long-divided Socialists back into disarray about who they could present as Sarkozy's opponent.

"It's a cross that will be difficult for him to bear," said Dominique Paille, a political rival to Strauss-Kahn on the center right, on BFM television.

"It's totally hallucinating. If it is true, this would be a historic moment, but in the negative sense, for French political life," Paille said. Still, he urged, "I hope that everyone respects the presumption of innocence. I cannot manage to believe this affair."

It wasn't clear why Strauss-Kahn was in New York. The IMF is based in Washington, and he was due in Germany on Sunday. His attorney declined to answer questions beyond saying his client denied the charges.

Strauss-Kahn checked into the luxury Sofitel hotel not far from Manhattan's Times Square Friday afternoon, police said.

The 32-year-old maid told authorities that she entered his suite early Saturday afternoon and he attacked her, New York Police Department spokesman Paul J. Browne. She said she had been told to clean the spacious $3,000-a-night suite, which she thought was empty.

According to an account the woman provided to police, Strauss-Kahn emerged from the bathroom naked, chased her down a hallway and pulled her into a bedroom, where he began to sexually assault her. She said she fought him off, then he dragged her into the bathroom, where he forced her to perform oral sex on him and tried to remove her underwear. The woman was able to break free again and escaped the room and told hotel staff what had happened, authorities said. They called police.

When detectives arrived moments later, Strauss-Kahn had already left the hotel, leaving behind his cellphone, Browne said. "It looked like he got out of there in a hurry," Browne said.

The NYPD discovered he was at the airport and contacted officials at the Port Authority of New York and New Jersey, which runs the airport. Port Authority officers plucked Strauss-Kahn from first class on the Air France flight that was just about to leave the gate.

The maid was taken by police to a hospital and was being treated for minor injuries. John Sheehan, a spokesman for the hotel, said its staff was cooperating in the investigation.

In sexual assault cases, it is procedure for detectives to look for DNA and forensic evidence and signs of trauma.

The accusations come amid French media reports about Strauss-Kahn's lifestyle, including luxury cars and suits, that some have dubbed a smear campaign.

The married father of four is known as DSK in France, but media there also have dubbed him "the great seducer." His reputation as a charmer of women has not hurt his career in France, where politicians' private lives traditionally come under less scrutiny than in the United States.

In 2008, Strauss-Kahn was briefly investigated over whether he had an improper relationship with a subordinate female employee.

The IMF board found that the relationship was consensual, but called his actions "regrettable" and said they "reflected a serious error of judgment."

The IMF employee left the fund and took a job with the European Bank for Reconstruction and Development.

Strauss-Kahn issued an apology, writing in an email to IMF staff that he showed poor judgment but didn't abuse his position.

Caroline Atkinson, an IMF spokeswoman, issued a statement Sunday that said the agency would have no comment on the New York case.

She referred all inquiries to Strauss-Kahn's personal lawyer and said the "IMF remains fully functioning and operational."

Strauss-Kahn's offices in Paris couldn't be reached when the news broke overnight in France. One of his allies, Jean-Marie Le Guen, expressed doubt about the case.

"The facts as they've been reported today have nothing to do with the Dominique Strauss-Kahn that we know," Le Guen said on BFM television. "Dominique Strauss-Kahn has never exhibited violence toward people close to him, to anyone."

Strauss-Kahn was supposed to be meeting in Berlin on Sunday with German Chancellor Angela Merkel about aid to debt-laden Greece, and then join EU finance ministers in Brussels on Monday and Tuesday.

The IMF is responsible for one-third of Greece's existing loan package, and his expected presence at these meetings underlined the gravity of the Greek crisis.

Strauss-Kahn took over as head of the IMF in November 2007. The 187-nation lending agency provides help in the form of emergency loans for countries facing severe financial problems.

He won praise for his leadership during the financial crisis of 2008 and the severe global recession that followed.

More recently, he has directed the IMF's participation in bailout efforts to keep a European debt crisis, which began in Greece from destabilizing the global economy.

Before taking the top post at the IMF, Strauss-Kahn had been a member of the French National Assembly and had also served as France's Minister of Economy, Finance and Industry from June 1997 to November 1999.

More recently, Strauss-Kahn was seen as the strongest possible challenger to Sarkozy. He has not declared his candidacy, staying vague in interviews while feeding speculation that he wants France's top job.

He sought the Socialist Party's endorsement in the last elections, in 2007, but came in second in a primary to Segolene Royal. Royal, the first woman to get so close to France's presidency, lost to Sarkozy in the runoff.

After Sarkozy won, the new president championed Strauss-Kahn as a candidate to run the IMF. Sarkozy's backers touted the move as a sign of the conservative president's campaign of openness to leftists - but political strategists saw it as a way for Sarkozy to get a potential challenger far away from the French limelight.

Royal, who continues to harbor presidential ambitions of her own, was cautious about the allegations, saying Sunday that Strauss-Kahn has the right to the presumption of innocence.

Strauss-Kahn is credited with preparing France for the adoption of the euro by taming its deficit and persuading then-Prime Minister Lionel Jospin to sign up to an EU pact of fiscal prudence.

A former economics professor, Strauss-Kahn joined the Socialist party in 1976 and was elected to parliament in 1986 from the Val-d'Oise district, north of Paris. He went on to become mayor of Sarcelles, a working-class immigrant suburb of Paris.

His first government post was industry minister under former President Francois Mitterrand.

---
Associated Press writers Cristian Salazar in New York, Martin Crutsinger in Washington and Angela Charlton in Paris contributed to this report.

(Copyright ©2011 by The Associated Press. All Rights Reserved.) Get more New York News »


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