Jackson Jr. in court: 'I am guilty, your honor'

Jesse Jr. and Sandi Jackson arriving in federal court in Washington today.

Former U.S. Rep. Jesse Jackson Jr. pleaded guilty this morning to conspiring with his wife, former Ald. Sandi Jackson, to siphon about $750,000 in federal campaign funds for the couple’s personal use, and could face years in prison.

Sandi Jackson was scheduled to plead guilty this afternoon to a single charge of tax fraud tied to the same allegations that the couple repeatedly tapped the ex-congressman’s campaign fund, used the money for personal use and then made fraudulent campaign and tax disclosures to cover up the misconduct.

Documents filed with Jackson Jr.'s plea agreement state that in January 2006, Jackson Jr. personally opened a bank account under the name “Jesse Jackson Jr. for Congress," and the following year withdrew $43,350 he used to buy a gold Rolex watch.

Between 2007 and 2011, he withdrew more than $14,000 to pay down personal credit cards, prosecutors stated. Between 2005 and April 2012, he was using campaign funds to fund a life of luxury, according to the documents.

“These expenditures included high-end electronic items, collector’s items, clothing, food and supplies for daily consumption, movie tickets, health club dues, personal travel and personal dining expenses,” the court filing states.

Items paid with a campaign credit card included more than $4,000 on a cruise and $243 at a Build-a-Bear workshop.

“Records from Best Buy reveal that defendant purchased multiple flat-screen televisions, multiple Blu-Ray DVD players, numerous DVD’s for his Washington, D.C. home,” the records state.

Prosecutors said $60,000 was spent on restaurants, nightclubs and lounges; $31,700 on personal airfare; $16,000 on sports clubs and lounges; $17,000 on tobacco shops; $5,800 on alcohol; $14,500 on dry cleaning; $8,000 on grocery stores and $6,000 at drug stores.

About 3,100 personal purchases were made on campaign credit cards, totaling $582,772.58, prosecutors said.

"Sir, for years I lived in my campaign," Jackson Jr. told U.S. District Judge Robert Wilkins. "I used monies that should have been used for campaign purposes, and I used them for myself personally, to benefit me personally.  And I am acknowledging that that which the government has presented is accurate."

As he entered the courtroom this morning, Jackson Jr. gave his wife Sandi a peck on the cheek and took his seat. At one point he stepped from the defense table and shook hands with a lead FBI agent in the case, Tim Thibault, who was seated with government prosecutors.

Jackson Jr. spoke softly during the hearing and sometimes dabbed his eyes with a tissue. When asked by Wilkins how he would plead, Jackson answered: “I am guilty, your honor.”

Pressed by the judge on whether he was freely entering the plea, the former congressman acknowledged he had been under psychiatric care but said he had not been treated for addiction to alcohol or narcotics.

Asked whether he understood what was happening, he answered, "Sir, I've never been more clear in my life."

Leaving the courtroom, Jackson Jr. told a reporter, "Tell everybody back home I'm sorry I let 'em down, OK?"

At a press conference following the hearing, Jackson Jr. attorney Reid Weingarten said Jackson's health problems contributed to his crimes.

"It turns out that Jesse has serious health issues," he said. "Those health issues are directly related to his present predicament. That's not an excuse, that's just a fact."

As part of the plea deal, the parties have agreed that sentencing guidelines call for a term of between 46 and 57 months in prison, but the sides reserved the right to argue for a sentence above or below that range for him when he is sentenced June 28.

After his release from an expected prison term, he might face three additional years of supervised release, or probation.

Also under the guideline range agreed to by Jackson Jr. and lawyers on both sides, what had been a maximum fine of $250,000 drops to one in the range of $10,000 to $100,000. In addition, he remains subject to a forfeiture of $750,000.

The judge said Jackson could be released before sentencing and ordered him to be processed by the U.S. Marshal's Service, surrender his passport and undergo drug testing while awaiting sentencing.
His attorney asked if Jackson Jr. could be allowed to travel back and forth from Chicago, saying he essentially lived in both places, and the judge agreed.

Jackson entered the anticipated plea in Act One of a two-part drama playing out in federal court not far from the House chamber where he served. Act Two is on tap this afternoon, when his wife, former Chicago Ald. Sandi Jackson, is expected to plead guilty to filing false tax returns.

Jackson Jr. entered a negotiated plea of guilty on one felony count of conspiracy to commit false statements, wire fraud and mail fraud. Prosecutors say he spent campaign contributions to buy luxury items, memorabilia and other goods.

As the Jacksons arrived at federal court in Washington, D.C. this morning, neither responded to questions from reporters. The two stepped out of a black SUV, and Sandi Jackson walked ahead of her husband, carrying a satchel. Jackson Jr. looked up when reporters shouted questions but said nothing and looked down as he went into the building.

Minutes later, his father, the Rev. Jesse Jackson Sr., and other family members walked through the front entrance of the courthouse, their arms linked together.

Jackson Jr., 47, was in the House of Representatives for 17 years until he resigned last November. Sandi Jackson, 49, was a Chicago alderman from 2007 until she stepped down in January. Both are Democrats.

Jackson Jr. began a mysterious medical leave of absence last June for what was eventually described as bipolar disorder. Though he did not campaign for re-election, he won another term last Nov. 6 while being treated at the Mayo Clinic in Minnesota. He left office two weeks later, saying he was cooperating with federal investigators.

Married for more than 20 years, the Jacksons have a 12-year-old daughter and a 9-year-old son. The family has homes in Washington and on Chicago’s South Side.

Washington defense attorney Stan Brand, the former general counsel of the House of Representatives, said Tuesday that Jackson Jr.’s case involved the largest sum of money he’s seen in a case involving personal use of campaign money.

“Historically, there have been members of Congress who either inadvertently or maybe purposefully, but not to this magnitude, used campaign funds inappropriately,” he said.

Earlier this morning, Judge Wilkins disclosed that he had a past link to Jackson Jr.’s father. But both prosecutors and the Jackson defense waived any attempt to transfer the case, the judge noted in a court memorandum.

Wilkins wrote that he has no interest or bias in the case, but disclosed the following:

“In 1988, while a law student, Judge Wilkins served as a co-chair of Harvard Law School students supporting the presidential campaign of Rev. Jesse L. Jackson, Sr., and on October 24, 1988, Judge Wilkins introduced Rev. Jackson when he came to speak at a campus event supporting the presidential candidacy of Governor Michael Dukakis. On March 21, 1999, while an attorney, Judge Wilkins appeared as a guest on a show hosted by Rev. Jackson on the CNN network entitled ‘Both Sides with Jesse Jackson’ to discuss a civil rights lawsuit in which Judge Wilkins was a plaintiff. Judge Wilkins believes that he has spoken to Rev. Jackson only on these two occasions, and he does not believe that he has ever met or spoken to the two defendants in these cases.”

kskiba@tribune.com

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Sony set to make pre-emptive strike on Microsoft with PS4

TOKYO (Reuters) - Sony Corp is expected to showcase a new PlayStation console on Wednesday in a pre-emptive strike against Microsoft Corp's bid to make its Xbox the world's leading hub for household entertainment.

The rare PlayStation event in New York comes amid industry speculation that Microsoft is set to unveil the successor to its Xbox 360, which beats the seven-year-old PlayStation 3's online network with features such as voice commands on interactive gaming and superior connectivity to smartphones and tablets.

"Their focus is on establishing a beachhead for the next generation of consoles, and that's what February 20 is all about," said P.J. McNealy, CEO and founder of Digital World Research. "The reality is they have been playing catch-up."

Pushing ahead of Microsoft's Xbox and Nintendo Co Ltd's new Wii U could help Sony revive an electronics business hurt by a dearth of hit gadgets, a collapse in TV sales and the convergence of consumer interest around tablets and smartphones built by rivals Apple Inc and Samsung Electronics Co Ltd.

Tablets and smartphones already account for around 10 percent of the $80 billion gaming market. Those mobile devices, analysts predict, will within a few years be as powerful as the current slew of game-only consoles.

After six years, Sony PlayStation sales are just shy of Xbox's 67 million installed base and well behind the 100-million selling Wii, analysts said.

A lackluster launch in November of the Wii successor, the Wii U, gives Sony a chance to focus on toppling Microsoft as all three battle the encroachment of casual gaming on tablets and smartphones. Nintendo cut its sales target to 4 million machines from 5.5 million for the year ending March 31.

STREAMING

Microsoft's answer to the casual gaming threat has been software that gives users extra content and allows them to surf the Internet from their mobile devices. The Xbox already streams Netflix and ESPN and links to tablets and smartphones using Windows or Apple's iOS and Google Inc's Android. Sony's PS3 online network has lagged.

"For Sony, they have to come out and make this PlayStation event the definitive statement of why gamers need to adopt the PlayStation 4 or PlayStation Orbis or whatever they end up calling it," said Greg Miller, PlayStation executive editor at video game site IGN.com.

Sony's purchase in July of U.S. cloud-based gaming company Gaikai for $380 million hints that the Japanese company will pursue a similar streaming strategy to Microsoft. Sony, industry watchers say, may also offer an expanded range of free games to counter the threat from casual gaming.

Sony, which under its CEO Kazuo Hirai is focusing on gaming, mobile devices and cameras, needs a hit product. But by betting on a PS3 successor, Hirai, whose most profitable business is life insurance, risks deepening consumer electronic losses as he will have to sell consoles at below the manufacturing cost to gain market traction.

That choice is made harder because the other two pillars of Hirai's new Sony - cameras and mobile - are losing money.

Sony expects to post a $1.4 billion operating profit in the current fiscal year. Yet, much of that rebound is gains from offloading real estate, including $1.1 billion for its New York headquarters.

The PlayStation event in New York starts at 2300 GMT (1800 EST).

($1 = 93.5200 Japanese yen)

(Additional reporting by Reiji Murai; Editing by Ryan Woo)

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Armstrong won't interview with USADA

AUSTIN, Texas (AP) — Lance Armstrong won't interview under oath with the U.S. Anti-Doping Agency to reveal all he knows about doping in cycling, his attorney says.

USADA officials had told Armstrong he must speak with them if he wanted to reduce his lifetime ban from sports. Wednesday was the deadline for him to agree to the interview under that offer.

After more than two months of negotiations, Armstrong attorney Tim Herman said Wednesday the cyclist won't participate in a process designed "only to demonize selected individuals."

Armstrong said previously he is willing to participate in an international effort to clean up a sport that is based mostly in Europe.

For years, Armstrong denied using performance-enhancing drugs. But last year, USADA released a report that detailed extensive doping on his seven Tour de France-winning teams and stripped him of those titles. Armstrong then admitted last month in an interview with Oprah Winfrey that he doped to win those races.

"We remain hopeful that an international effort will be mounted and we will do everything we can to facilitate that result," Herman said in a statement. "Lance will not participate in USADA's efforts to selectively conduct American prosecutions that only demonize selected individuals while failing to address the 95 percent of the sport over which USADA has no jurisdiction."

Armstrong is facing several legal challenges, and testifying under oath to USADA could have exposed him to further troubles.

Armstrong was the subject of a two-year federal criminal investigation that was dropped in February with no charges filed, but the Department of Justice is still considering whether to join a federal whistle-blower lawsuit filed by former Armstrong teammate Floyd Landis.

Armstrong also has been sued by a Dallas-based SCA Promotions to recover more than $12 million in bonuses. He also has been sued to by The Sunday Times in London to recover a libel judgment that Armstrong won against the paper.

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Drug overdose deaths up for 11th consecutive year

CHICAGO (AP) — Drug overdose deaths rose for the 11th straight year, federal data show, and most of them were accidents involving addictive painkillers despite growing attention to risks from these medicines.

"The big picture is that this is a big problem that has gotten much worse quickly," said Dr. Thomas Frieden, head of the Centers for Disease Control and Prevention, which gathered and analyzed the data.

In 2010, the CDC reported, there were 38,329 drug overdose deaths nationwide. Medicines, mostly prescription drugs, were involved in nearly 60 percent of overdose deaths that year, overshadowing deaths from illicit narcotics.

The report appears in Tuesday's Journal of the American Medical Association.

It details which drugs were at play in most of the fatalities. As in previous recent years, opioid drugs — which include OxyContin and Vicodin — were the biggest problem, contributing to 3 out of 4 medication overdose deaths.

Frieden said many doctors and patients don't realize how addictive these drugs can be, and that they're too often prescribed for pain that can be managed with less risky drugs.

They're useful for cancer, "but if you've got terrible back pain or terrible migraines," using these addictive drugs can be dangerous, he said.

Medication-related deaths accounted for 22,134 of the drug overdose deaths in 2010.

Anti-anxiety drugs including Valium were among common causes of medication-related deaths, involved in almost 30 percent of them. Among the medication-related deaths, 17 percent were suicides.

The report's data came from death certificates, which aren't always clear on whether a death was a suicide or a tragic attempt at getting high. But it does seem like most serious painkiller overdoses were accidental, said Dr. Rich Zane, chair of emergency medicine at the University of Colorado School of Medicine.

The study's findings are no surprise, he added. "The results are consistent with what we experience" in ERs, he said, adding that the statistics no doubt have gotten worse since 2010.

Some experts believe these deaths will level off. "Right now, there's a general belief that because these are pharmaceutical drugs, they're safer than street drugs like heroin," said Don Des Jarlais, director of the chemical dependency institute at New York City's Beth Israel Medical Center.

"But at some point, people using these drugs are going to become more aware of the dangers," he said.

Frieden said the data show a need for more prescription drug monitoring programs at the state level, and more laws shutting down "pill mills" — doctor offices and pharmacies that over-prescribe addictive medicines.

Last month, a federal panel of drug safety specialists recommended that Vicodin and dozens of other medicines be subjected to the same restrictions as other narcotic drugs like oxycodone and morphine. Meanwhile, more and more hospitals have been establishing tougher restrictions on painkiller prescriptions and refills.

One example: The University of Colorado Hospital in Aurora is considering a rule that would ban emergency doctors from prescribing more medicine for patients who say they lost their pain meds, Zane said.

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Stobbe reported from Atlanta.

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Online:

JAMA: http://www.jama.ama-assn.org

CDC: http://www.cdc.gov

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AP Medical Writer Lindsey Tanner can be reached at http://www.twitter.com

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'Twilight' author Meyer plots another trilogy

MIAMI (AP) — Stephenie Meyer's "The Host" doesn't have much in common with her Twilight series, except maybe the potential for a franchise.

Meyer is working on a sequel to the 2008 novel she began writing as an escape from the editing of "Eclipse," the third book in the Twilight vampire saga. And now that it too has reached the big screen, she's got more books in mind.

"Once you've created characters that have life to them, unless you kill them all, you know where their stories go. You're always aware of what happens next," Meyer told The Associated Press in an interview Tuesday. "I've got outlines for the next books. I would hope that this would be a three-book arc, but we'll see."

At an advance screening of "The Host," which premieres March 29, Meyer said she wrote the book when she was "kind of overwhelmed with vampires and red ink and a lot of people kind of having expectations of what they wanted from the next book and knowing that I wasn't always answering those."

"The Host" trades the vampires and werewolves of Meyer's previous works for space invaders. An alien race takes over the minds of their human hosts but leaves their bodies intact so that they can perfect the planet they believed humans were ruining. One human, a young woman named Melanie Stryder, refuses to give up her head space so easily.

Saoirse Ronan plays both Melanie and her alien invader in the film. Max Irons and Jake Abel play her love interests.

"The Host" will inevitably draw comparisons to the book and film series that made Meyer a phenomenon, but she hopes the story stands alone and appeals to a broader audience than just "Twi-hards."

For one thing, she calls it her "guy friendly" work because it explores bonds and loyalties beyond simple romantic love.

"When you're a teenager, love feels like life and death, but this is actual life and death, which is kind of more fun," Meyer told the Miami audience.

"Not to mention all the explosions and gunfire," said Abel, who plays Ian O'Shea, one of the human rebels in the story.

What "The Host" does have in common with the Twilight saga is a love triangle, though one complicated further by two distinct entities sharing one body.

"Jake and Max call it the 'love box,'" Meyer told AP.

Though she's attracted to complicated relationships, that conflict probably won't surface in the sequel she's writing.

"I feel like the 'love box,' as it is, is played out in this novel. It completely resolves into two happy places, so that won't be a focus going forward," Meyer said.

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Office Depot to buy OfficeMax

Office Depot to buy Office Max as an attempt to compete with Staples.

Office Depot Inc. and Office Max Inc. have agreed to merge in a $1.17 billion stock transfer, the companies announced Wednesday, ending nearly two hours of confusion about whether a deal had been reached.

Officials at Naperville-based OfficeMax and Office Depot declined to say who would lead the combined company nor where it would be located when the "merger of equals" is completed, likely by the end of the year.

After some confusion early Wednesday, when a draft press release was posted prematurely on the website of Boca Raton, Fla.-based Office Depot's, both companies issued a joint statement at around 8:30 a.m. CT announcing the planned merger. 

"During the appropriated times ... our board will make the right decision,"  OfficeMax President and CEO  Ravi Saligram said of the location and leadership of the combined firm. "Now we're independent companies and we've got to go through lots of processes," he said.

On a conference call with analysts, Office Depot CEO Neil Austrian apologized for the announcement mishap on Wednesday morning.  "Our webcast provider inadvertently released our earnings in advance of schedule," he said.  We regret any inconvenience that this may have caused." 

Saligram and Austrian emphasized that the combination, which will create a company that will do roughly $18 billion in revenue, is a merger of equals.

"This [merger] will create a stronger, more global, more efficient competitor able to meet the growing challenges a rapidly changing industry," said Saligram. 

When combined, OfficeMax and Office Depot, the world's second and third largest office products companies by revenue, will still not eclipse the segment's largest business, Staples Inc.

The pair had combined revenue of about $18.5 billion in the last fiscal year. They expect to save about $400 million to $600 million per year within three years through layoffs, streamlining of back-office functions and combined advertising. They didn't provide details on how many workers would lose their jobs or the fate of OfficeMax's Naperville headquarters.

After days of speculation that a deal was close, a draft of a press release announcing the news was posted prematurely on Office Depot's website early Wednesday morning. More than an hour after it came out, there was still no mention of the merger on either company's website nor on the SEC or other investor websites. Sources cited by the New York Times Wednesday morning said negotiations were ongoing.

Thomson Reuters Corporate Services, which operates various investor relations websites including Office Depot's, took responsibility for the early publication. "Unfortunately, Thomson Reuters incorrectly posted this morning's announcement of Office Depot's intention to merge with Office Max prior to its intended release," Lemuel Brewster, PR director - investors at Thomson Reuters, said Wednesday afternoon in an email response to an inquiry. "We regret this error and are taking all steps necessary to enhance our processes and controls to ensure this does not happen again."

Office Depot will issue 2.69 new shares of common stock for each outstanding common share of OfficeMax. At Tuesday's closing prices, the deal is valued at $13.50 per share, or $1.17 billion, based on 86.7 million shares outstanding as of Oct. 26.

After the merger is completed, Office Depot's board will consist of an equal number of directors chosen by that company and OfficeMax.

Although the actual announcement didn’t go as planned, the deal has been rumored for years as the struggling office supply sector deals with fickle consumers and businesses that are conserving costs and doing more online.

Analysts say they expect far less pushback from antitrust authorities for this deal than what Office Depot faced in the 1990s, when it tried to merge with Staples, given the changes in the office supply market since then.

Underscoring how tough that business has become, Office Depot reported a fourth-quarter net loss, hurt by a 6 percent decrease in comparable sales at its North American stores and a revenue drop at its unit that serves North American businesses.

Office supply retailers, which are often seen as reflecting overall economic health, have suffered as demand for their products fell in the years after the last U.S. recession led companies to cut spending.

They also face strong competition from the likes of Amazon and Wal-Mart Stores Inc in selling everything from pens and notebooks to furniture and break room supplies to government, businesses and individuals.

SMALL PREMIUM

The offer represented a premium of just under 4 percent to OfficeMax's $13 close. It was not immediately clear if that was enough to satisfy one of the company's largest shareholders, Neuberger Berman, which said earlier this week it would support a deal depending on the terms.

OfficeMax shares rose 9.2 percent to $14.20 in premarket trading. Office Depot was up 10 percent at $5.52, meaning that OfficeMax was still trading below the value of the bid.

The deal, considered long overdue by many on Wall Street, will also give Office Depot and OfficeMax a chance to save hundreds of millions of dollars by closing stores, cutting advertising costs and streamlining their supply chain.

Industry experts have long hoped Office Depot would join hands with OfficeMax to take on Staples, which boosted its international business and clout with suppliers by buying Dutch rival Corporate Express in 2008.

BB&T Capital Markets analyst Anthony Chukumba said the Office Depot-OfficeMax combination would help Staples, however.

"Clearly, you can't make this deal work unless you close a bunch of stores," he said. "Store rationalization is long overdue, and Staples will clearly benefit from just having fewer stores to compete with."

Staples has 39.9 percent of the U.S. office supply market, Office Depot 19.2 percent and OfficeMax holds 15.7 percent, according to Euromonitor International.

Tribune reporter Samantha Bomkamp and Reuters contributed.

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Ex-law partner: Drew Peterson attorney attacked me

Joel Brodsky’s ex-law partner testified that Drew Peterson’s former lead attorney had physically attacked her in the past and tried to intimidate her this morning before she took the witness stand.

The testimony from Reem Odeh, a former attorney for Peterson, came during a hearing on a motion for a new murder trial filed by Peterson’s defense team.

Peterson, convicted last fall of first-degree murder in the 2004 bathtub drowning of his third wife, Kathleen Savio, and his attorneys will argue that Peterson deserves a new trial in part because Brodsky’s work on the case was flawed. The 59-year-old former Bolingbrook police sergeant faces 20 to 60 years in prison at his scheduled sentencing Wednesday.
Odeh said this morning that Brodsky talked to her often about how he thought the Peterson case would benefit himself and the firm.

“On many occasions, especially when we would have our quarrels about financial matters regarding the case,” Odeh said.

She also said Brodsky made a comment to her in passing outside the courtroom this morning. Odeh testified that she could not recall Brodsky’s exact words but “I perceived that he was trying to intimidate me or threaten me.”
She also testified that Brodsky had attacked her when she left his firm in 2010.

"There was an incident where he physically attacked me and the police had to be called," she said. "Just remembering what I had to go through is very, very upsetting."

Outside court, Odeh said she never pressed charges because she wanted to end any contact with Brodsky. Also outside court, Brodsky said he never spoke with Odeh or threatened her before the hearing this morning, and said she lied when she testified that he physically attacked her when she dissolved their partnership in 2010.

Instead, it was he who fired her after she allegedly forged his signature on affidavits, he said.

"This is a very angry person who I found out was forging affidavits," Brodsky said.

Odeh denied she forged affidavits when asked about it outside court.
On the witness stand, Odeh said she left Brodsky’s firm under “very disturbing” circumstances. Many of her files and belongings were packed up and shipped out, and she took with her a copy of a contract between Brodsky, Peterson and a publicist.

She said she didn’t take the documents as a hedge against any future action by Brodsky or others.

“I thought that Mr. Brodsky was very furious with me for ending the partnership and leaving. So I gathered everything I could get my hands on and left.”

This morning’s hearing in Joliet began with questions from Judge Edward Burmila about one of Peterson’s attorneys.
Burmila said he was “concerned” about whether defense attorney Steve Greenberg could give his full attention to Peterson’s case given that Greenberg has been sued for libel this month by Brodsky.

"The issue now is that Mr. Greenberg's personal name and financial interest could be at interest due to this lawsuit and the timing of it," Burmila said to Peterson. "Someone could argue...that Greenberg is now pulling his punches because he'd be afraid that if he revisits these same issues, he'd be accused of once again libeling Mr. Brodsky. Do you still have confidence in these attorneys this morning...despite the pendency of this lawsuit?"

"Yes, your honor," Peterson replied.

Peterson remains the sole suspect in the 2007 disappearance of his fourth wife, Stacy. Prosecutors believe Peterson killed her and have said they will ask the judge to weigh that when sentencing him.

Peterson's defense team is alleging that Brodsky's legal leadership — including calling a witness whose testimony several jurors said convinced them Peterson was guilty — amounted to ineffective assistance of counsel, which can be grounds for a new trial.

Burmila has indicated that if he denies the motion for a new trial, he will immediately move into the sentencing hearing.

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Apple, Mac computers hit by hackers who targeted Facebook

BOSTON/SAN FRANCISCO (Reuters) - Apple Inc was recently attacked by hackers who infected the Macintosh computers of some employees, the company said on Tuesday in an unprecedented disclosure that described the widest known cyber attacks against Apple-made computers to date.

Unknown hackers infected the computers of some Apple workers when they visited a website for software developers that had been infected with malicious software. The malware had been designed to attack Mac computers, the company said in a statement provided to Reuters.

The same software, which infected Macs by exploiting a flaw in a version of Oracle Corp's Java software used as a plug-in on Web browsers, was used to launch attacks against Facebook, which the social network disclosed on Friday.

The malware was also employed in attacks against Mac computers used by "other companies," Apple said, without elaborating on the scale of the assault.

But a person briefed on the investigation into the attacks said that hundreds of companies, including defense contractors, had been infected with the same malicious software, or malware.

The attacks mark the highest-profile cyber attacks to date on businesses running Mac computers. Hackers have traditionally focused on attacking machines running the Windows operating system, though they have gradually turned their attention to Apple products over the past couple of years as the company gained market share over Microsoft Corp.

"This is the first really big attack on Macs," said the source, who declined to be identified because the person was not authorized to discuss the matter publicly. "Apple has more on its hands than the attack on itself."

NATIONAL SECURITY

Cyber-security attacks have been on the rise. In last week's State of the Union address, U.S. President Barack Obama issued an executive order seeking better protection of the country's critical infrastructure from cyber attacks.

Over the weekend, cyber-security specialists Mandiant reported that a secretive Chinese military unit was believed to have orchestrated a series of attacks on U.S. companies, which Beijing has strongly denied.

White House spokesman Jay Carney told reporters on Tuesday that the Obama administration has repeatedly taken up its concerns about Chinese cyber-theft with Beijing, including the country's military. There was no indication as to whether the group described by Mandiant was involved in the attacks described by Apple and Facebook.

An Apple spokesman declined to specify how many companies had been breached in the campaign targeting Macs, saying he could not elaborate further on the statement it provided.

"Apple has identified malware which infected a limited number of Mac systems through a vulnerability in the Java plug-in for browsers. The malware was employed in an attack against Apple and other companies, and was spread through a website for software developers," the statement said.

"We identified a small number of systems within Apple that were infected and isolated them from our network. There is no evidence that any data left Apple," it continued.

The statement said Apple was working closely with law enforcement to find the culprits, but the spokesman would not elaborate. The Federal Bureau of Investigation declined to comment.

Apple said it plans to release a piece of software on Tuesday, which it said customers can use to identify and repair Macs infected with the malware used in the attacks.

(Editing by Andre Grenon, Edwin Chan and Richard Chang)

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Pistorius: Thought lover an intruder in shooting

PRETORIA, South Africa (AP) — Oscar Pistorius wept Tuesday as his defense lawyer read the athlete's account of how he shot his girlfriend to death on Valentine's Day, claiming he had mistaken her for an intruder.

Prosecutors, however, told a packed courtroom that the double-amputee known as the Blade Runner intentionally and mercilessly shot and killed 29-year-old Reeva Steenkamp as she cowered inside a locked bathroom.

Pistorius told the Pretoria Magistrate's Court at a bail hearing he felt vulnerable in the presence of an intruder inside the bathroom because he did not have his prosthetic legs on, and fired into the bathroom door.

The Valentine's Day shooting in Pistorius' home in Pretoria shocked South Africans and many around the world who idolized him for overcoming adversity to become a sports champion, competing in the London Olympics last year in track besides being a Paralympian. Steenkamp was a model and law graduate who made her debut on a South African reality TV program that was broadcast on Saturday, two days after her death.

In a major point of contention emerged even during Tuesday bail hearing, prosecutor Gerrie Nel said Pistorius took the time to put on his prostheses, walked seven meters (yards) from the bed to the enclosed toilet inside his bathroom and only then opened fire. Three of the bullets hit Steenkamp of the four that were fired into the door, Nel said.

Pistorius said in his sworn statement that after opening fire, he realized that Steenkamp was not in his bed.

"It filled me with horror and fear," Pistorius said. The 26-year-old Olympian said he put on his prosthetic legs and tried to kick down the door before finally bashing it in with a cricket bat. Inside, he said he found Steenkamp, slumped over. He said he lifted her bloodied body into his arms and tried to carry her downstairs to seek medical help.

But by then, it was too late.

"She died in my arms," the athlete said.

Nel charged Pistorius with premeditated murder and said the athlete opened fire after the couple engaged in a shouting match and she fled to the bathroom.

"She couldn't go anywhere. You can run nowhere," Nel said. "It must have been horrific."

A conviction of premeditated murder carries a mandatory sentence of life in jail.

Chief Magistrate Desmond Nair ruled that Pistorius must face the harshest bail requirements available in South African law. That means Pistorius' lawyers must offer "exceptional" reasons for the athlete to be free before trial, besides simply giving up his two South African passports and posting a cash bond.

Pistorius sobbed softly as his lawyer, Barry Roux, insisted the shooting was an accident and that there was no evidence to substantiate a murder charge.

"We submit it is not even murder," he said. "There is no concession this is a murder."

Pistorius' emotional outbursts again played a part in how the hearing progessed, as it did during an initial hearing Friday. At one point, Nair stopped the hearing after Pistorius wept as Roux read a portion of the athlete's statement describing how Steenkamp bought him a Valentine's Day present, but wouldn't let him open it the night before.

"Maintain your composure," the magistrate said. "You need to apply your mind here."

Pistorius' voice quivered when he answered: "Yes, my lordship."

Affidavits from friends of Pistorius and Steenkamp described the two as a charming, happy couple. The night before the killing, they said, Pistorius and Steenkamp had canceled separate plans in order to spend the night before Valentine's Day together at his home, in a gated neighborhood.

Outside the court, several dozen singing women protested against domestic violence and waved placards urging that Pistorius be refused bail. "Pistorius must rot in jail," one placard said.

As details emerged at the dramatic court hearing in the capital, Steenkamp's body was being cremated Tuesday at a memorial service in the south-coast port city of Port Elizabeth. Six pallbearers carried her coffin, draped with a white cloth and covered in white flowers, into the church for the private service.

South Africa has some of the world's worst rates of violence against females and the highest rate in the world of women killed by an intimate partner, according to a study by the Medical Research Council. Professor Rachel Jewkes of the council said at least three women are killed by a partner every day in this country of 50 million.

Steenkamp campaigned actively against domestic violence and had tweeted on Twitter that she planned to join a "Black Friday" protest by wearing black in honor of a 17-year-old girl who was gang-raped and mutilated two weeks ago.

What "she stood for, and the abuse against women, unfortunately it's gone right around and I think the Lord knows that statement is more powerful now," her uncle Mike Steenkamp, the family's spokesman, said after her memorial.

He said the family had planned a big get-together at Christmas but that had not been possible. "But we are here today as a family and the only one who's missing is Reeva," he said, breaking down and weeping.

Pistorius has lost several valuable sponsorships estimated to be worth more than $1 million a year.

On Tuesday, the athlete was ousted from a pro-gay campaign being launched in Cape Town, organizers said. In a video axed from the campaign, Pistorius says: "You don't have to worry. You don't have to change. Take a deep breath and remember, 'It will get better.'"

And Clarins Group, which owns Thierry Mugler Perfumes, said in an email that "out of respect and compassion for the families involved in this tragedy, Thierry Mugler Perfumes have taken the decision to withdraw all of their advertising campaigns featuring Oscar Pistorius."

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UK patient dies from SARS-like coronavirus

LONDON (AP) — A patient being treated for a mysterious SARS-like virus has died, a British hospital said Tuesday.

Queen Elizabeth Hospital in Birmingham, central England, said the coronavirus victim was also being treated for "a long-term, complex unrelated health problem" and already had a compromised immune system.

A total of 12 people worldwide have been diagnosed with the disease, six of whom have died.

The virus was first identified last year in the Middle East. Most of those infected had traveled to Qatar, Saudi Arabia, Jordan or Pakistan, but the person who just died is believed to have caught it from a relative in Britain, where there have been four confirmed cases.

The new coronavirus is part of a family of viruses that cause ailments including the common cold and SARS. In 2003, a global outbreak of SARS killed about 800 people worldwide.

Health experts still aren't sure exactly how humans are being infected. The new coronavirus is most closely related to a bat virus and scientists are considering whether bats or other animals like goats or camels are a possible source of infection.

Britain's Health Protection Agency has said while it appears the virus can spread from person to person, "the risk of infection in contacts in most circumstances is still considered to be low."

Officials at the World Health Organization said the new virus has probably already spread between humans in some instances. In Saudi Arabia last year, four members of the same family fell ill and two died. And in a cluster of about a dozen people in Jordan, the virus may have spread at a hospital's intensive care unit.

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