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Politics

Secret Service returns fraudulent pandemic loans to federal SBA

The US Secret Service returned $286 million in fraudulently obtained pandemic aid loans to the Small Business Administration, the agency announced Friday.

The funds sent back to the SBA were obtained via the Economic Injury Disaster Loan (EIDL) program using both fabricated information and stolen identities.

The suspects used Green Dot Bank, a fintech institution, to hold and move the fraudulent funds. More than 15,000 accounts were used in the conspiracy, by individuals in the US as well as domestic and transnational organized crime rings, the agency said.

Investigations are ongoing and further information about suspects was not immediately released. the Investigation was initiated by the Secret Service field office in Orlando, Florida, and Green Dot bank worked with the agency to identify the fraudulent accounts.

“Fraudsters in general are always looking for ways and techniques to better do their crimes and modern conveniences are just one of those things they use. So currently, cryptocurrency is a big thing, fintechs, third-party payment systems. But there’s not an institution , even our traditional financial institutions, that weren’t targeted during the pandemic,” Roy Dotson, lead investigator for the Secret Service, told CNBC in an interview.

Initial investigations indicated the majority of the fraudulent accounts at Green Dot were established with synthetic and stolen identities, and involved using “willing and unwilling money mules,” Dotson said.

The Secret Service and SBA Office of Inspector General put out advisories to 30,000 financial institutions in early 2020 to lay out fraud indicators and guide the banks to partner with federal agencies to recover fraudulent funds, Dotson said. He added these investigations will likely last years due to their size and scope.

OIG Inspector General Hannibal Ware said the partnership with the Secret Service has to date resulted in more than 400 indictments and nearly 300 convictions related to pandemic fraud.

The US government allocated more than $1 trillion to Main Street under both the Paycheck Protection Program and EIDL program. The PPP allowed small businesses to borrow loans that may be forgiven if the borrower used the majority of the capital on payroll, while the Covid-19 EIDL program allowed borrowers to access loans based on temporary losses of revenue due to the pandemic. An advance grant was also available under the EIDL.

Reviews of the two programs by the SBA’s Office of Inspector General warned that criminals would potentially exploit the system due to the fast-moving nature of the rollout and demand for aid. CNBC investigations revealed, in some cases, how easy it was for criminals to obtain fraudulent aid via stolen identities.

The SBA OIG said it has identified $87 billion of potentially fraudulent EIDL loans.

Over the past two years, the Secret Service said it has seized over $1.4 billion in fraudulently obtained funds and assisted in returning some $2.3 billion to state unemployment insurance programs. Nearly 4,000 pandemic-related fraud investigations and inquiries have been initiated by the Secret Service. More than 150 field offices and 40 cyber task forces are involved.

“This is not going to be a quick fix. As we talked about today, 15,325 accounts at one financial institution — this is one case, so you can just think of the potential number of suspects and how many investigations that could come out of those . And with all of our federal, state and local partners working this and having the same mission. It’s going to be a long process,” Dotson said at a news conference announcing the returned funds.

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Health

Some in Missouri Search Covid-19 Photographs in Secret, Physician Says

Even as the more contagious Delta variant drives a surge in infections, the Covid-19 vaccination effort has become so polarized in Missouri that some people are trying to get shots in secret to avoid conflicts with friends and relatives, a doctor there said.

In a video circulated by her employer, Dr. Priscilla A. Frase, a hospitalist and the chief medical information officer at Ozarks Healthcare in West Plains, Mo., said this month that several people had pleaded for anonymity when they came in to be vaccinated, and that some appeared to have made an effort to disguise themselves.

“I work closely with our pharmacists who are leading our vaccine efforts through our organization,” she said, “and one of them told me the other day that they had several people come in to get vaccinated who have tried to sort of disguise their appearance and even went so far as to say, ‘Please, please please, don’t let anyone know that I got this vaccine.’”

It was not clear how many people had tried to alter their appearance to avoid recognition, or how they had done so. Dr. Frase, who wore a mask in the video, did not immediately respond to a request for comment.

Some people, she said in the video, were “very concerned about how their people that they love, within their family and within their friendship circles and their work circles, are going to react if they found out that they got the vaccine.”

Coronavirus Pandemic and U.S. Life Expectancy

“Nobody should have to feel that kind of pressure to get something that they want, you know,” she added. “We should all be able to be free to do what we want to do, and that includes people who don’t want to get the vaccine as well as people who do want to get the vaccine. But we’ve got to stop ridiculing people that do or don’t want to get the vaccine.”

The video was circulating online as public health officials in Missouri were confronting a resurgent outbreak, driven by the Delta variant and concentrated in the state’s south and southwest.

Updated 

Aug. 1, 2021, 3:54 p.m. ET

The state’s vaccination rate lags that of most other states and the nation as a whole. According to a New York Times database, 41 percent of Missouri residents have been fully vaccinated against Covid-19, compared with more than 49 percent nationwide. In Howell County, Mo., where Ozarks Healthcare and Dr. Frase are based, only 20 percent of residents are fully vaccinated.

On Thursday, Missouri had a seven-day average of nearly 2,500 new cases of Covid-19 — an increase of 39 percent over the previous two weeks. Hospitalizations were up 38 percent over the same period.

Studies suggest that the approved vaccines remain effective against the Delta variant, but public health experts say Delta poses a serious threat to unvaccinated populations.

Understand the State of Vaccine Mandates in the U.S.

Despite that evidence, public health measures to slow the spread of the coronavirus, including vaccinations, have been politicized across much of the country. In some places, including in parts of Missouri, being unvaccinated has become a point of pride for some people. In a Politico report this week, few people who were interviewed at Lake of the Ozarks, a popular tourist destination, acknowledged that they had been vaccinated, and some said that they had been shamed by friends or relatives.

In the video, Dr. Frase said she was particularly troubled by the increased spread of misinformation about the vaccines.

“My fear is that people are getting information from the wrong sources and therefore actually making uninformed decisions rather than informed decisions,” she said.

“I want people to ask medical people,” she added, “or ask somebody that they trust who has good knowledge — not rely on the stuff that’s out there on social media, not rely on people who have opinions not based on facts.”

It was “disheartening,” she said, “to have gotten to that place where we, as health care providers, thought that maybe things were finally back to whatever our new normal is going to be after this pandemic.”

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Politics

Justice Dept. Goals to Preserve Secret A part of Barr-Period Memo on Trump

The Biden administration has decided to fight to keep most of a Justice Department memo from the Trump era related to the controversial 2019 statement by former Attorney General William P. Barr in which President Donald J. Trump is exempted from illegal obstruction of justice in the Russia investigation.

Late on Monday, the Justice Department appealed part of a district court ruling ordering the entire memo to be published. At the same time, it was written that Mr. Barr sent a letter to Congress claiming that the evidence in the then-secret report by Special Envoy Robert S. Mueller III was insufficient to charge Mr. Trump with a crime.

The Justice Department published the first page and a half of the nine-page memo. While Mr Miller had refused to pass judgment on what the evidence brought together because the department’s policy was not to indict a seated president, the memo said Mr Barr was entitled to make a decision to the public Shape understanding of the report.

The Mueller report itself, which Mr. Barr was allowed to publish weeks after his letter to Congress, had created the impression that the fruits of Mr. Mueller’s investigation had cleared Mr. Trump of the obstruction. It contained several actions by Mr Trump that many legal specialists said were clearly sufficient to ask a grand jury to charge him with obstruction of justice.

These actions included attempting to harass his White House attorney Donald F. McGahn II to forge a record to cover up a previous attempt by Mr. Trump to fire Mr. Miller and a possible pardon for Mr. To impose Trump’s former election chairman. Paul Manafort to encourage him not to work with investigators.

The Justice Department’s new filing also apologized and defended the Barr-era court files, which Judge Amy Berman Jackson had described as “insincere.” They could have been written more clearly, but they were still correct.

“The government acknowledges that its pleadings could have been clearer and deeply regrets the confusion it has caused,” the Justice Department said. “But the government attorney and registrants had no intention of misleading the court, and the government respectfully submits” that missteps still did not warrant the publication of the entire memo.

Mr Barr’s claim – made weeks before the Mueller publication was released – that the evidence gathered showed that Mr Trump did not commit a criminal offense of disability has been widely criticized as deeply misleading.

Among other things, a government monitoring group, CREW, filed a lawsuit under the Freedom of Information Act in the US District Court in Washington to request disclosure of an internal memo on the matter.

Earlier this month, Judge Jackson issued a damning ruling on the case alleging that the Barr-era Justice Department was “insincere” to that court about the nature of the memo on court records, arguing that it could be lawfully kept secret under an exception preliminary considerations. She wrote that she made the discovery after insisting that she read it herself.

While the Barr-era Justice Department advised her that the memo concerned considerations about whether Mr. Trump should be charged with disability, the memo itself indicated that Mr. Barr had already decided not to, and the memo dealt with instead Strategy and arguments that could be applied to discard the idea. She ordered the entire document released.

The Biden-era Justice Department had until Monday to respond. In its filing, she acknowledged that her previous filings “could have been clearer and deeply regrets the confusion it has caused”. However, it also insisted that its “statements and pleadings were correct and submitted in good faith”.

The decision that Mr Barr actually made was, according to the department, about whether to decide whether the evidence would be enough to indict Mr Trump one day – and not whether he should be indicted at that moment, as the longstanding legal policy of the The sitting department should consider sitting presidents temporarily protected from prosecution during their tenure.

And it said the legal analysis in the second part of the memo – the part about which secrecy is appealing – was in fact decided beforehand, although the memo was finalized after Mr Barr made his decision because it commemorates legal advice which the department’s attorneys had previously given to the attorney general.

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Business

Secret Sharers: The Hidden Ties Between Non-public Spies and Journalists

Mr. Simpson loved trying reporters, rewarding them with war stories, and presenting himself as a journalistically wise man. At a conference of investigative journalists in 2016, he said he and Mr Fritsch formed Fusion to continue their work as reporters correcting injustices.

“I like to call it journalism rental,” he said.

Fusion GPS, like its competitors, was part of a broader network of enablers – lawyers, public relations managers, and “crisis management” consultants – serving the rich, powerful, and controversial. For their part, private intelligence companies take on jobs that others cannot or do not want to be caught.

Information gathered by private investigators is often laundered by public relations firms who then distribute the material to journalists. Jules Kroll, who founded the modern private intelligence industry in the 1970s, broke this mold by sharing information directly with reporters. Mr. Simpson went a step further. He sold Fusion GPS to customers by pointing out his connections to major media outlets and reassuring journalists that he really was still one of them.

“People who have never been a reporter don’t really understand the challenges of printing what you know because you can’t just say what you know – you have to say how you know and you have to prove it,” said Mr. Simpson remarked at the 2016 conference, “When you’re a spy, you really don’t have to get into that much.”

Fusion GPS has also mined an area that other private intelligence companies have shunned – opposition political research. And when Mr. Trump emerged as the front runner for the Republican presidential nomination in 2016, Hillary Clinton’s campaign lawyers hired Fusion to look into Mr. Trump-Russia relations.

In the fall of 2016, Fusion GPS invited selected reporters from The Times, The New Yorker, and other news organizations to meet Mr. Steele in Washington and learn about what he’d found out about the Trump campaign and the Kremlin. As is often the case in the private intelligence world, the meetings had a catch: when news organizations wrote about the dossier, they had to agree not to disclose that Fusion GPS and the former British agent were the sources of the material.

Journalists were told that Mr. Steele played a pivotal role in overturning major cases, including the 2006 poisoning of Alexander Litvinenko, a former KGB agent, and the FBI’s investigation into bribery at FIFA, the football association. And when he talked about Trump and Russia, he appeared calm, reserved and confident, according to reporters who attended the meetings.

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Politics

Secret Service seizes $2 billion in fraudulent unemployment funds, returns funds to states

Checks are printed at the US Treasury Department Philadelphia Finance Center in Philadelphia, Pennsylvania.

Dennis Brack | Bloomberg | Getty Images

The Secret Service has seized stolen Covid unemployment benefit funds and returned them to states, agency officials said on Wednesday.

Programs in at least 30 states received the money after the agency found recipients fraudulently applied for pandemic unemployment.

“This is typical of the cyber fraud that we deal with annually. It is only put together on the basis of additional funds (from) the Covid aid,” said Roy Dotson, the Secret Service’s special envoy in charge, to CNBC. “The criminals took full advantage of the programs to try to steal from them.”

He said the $ 2 billion returned to states is a “conservative estimate” and the investigation into pandemic-related fraud is ongoing. He said last year that the Secret Service had sent advice to financial institutions to flag potentially fraudulent accounts that the money might have been deposited into.

According to Dotson, scammers have typically stolen the identities of people who are eligible for unemployment benefits. In other cases, he said, identities were stolen from people who had not even applied for unemployment.

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The rapid roll-out of the Pandemic Unemployment Assistance program made it easy for scammers to become victims. The Inspectorate General of the Department of Labor said in a report released in March that at least $ 89 billion of the estimated $ 896 billion in Unemployment Program funds “could not be properly paid, a significant portion of which was due to fraud.”

The Ministry of Labor has announced that it will work with the secret service, the Justice Ministry and other agencies “to vigorously pursue those who defraud the unemployment insurance program and secure benefits for the unemployed.”

The Secret Service also announced that it had seized more than $ 640 million in funds defrauded primarily from the Paycheck Protection Program and the Economic Injury Disaster Loan Program. Around 690 inquiries into unemployment insurance and 720 inquiries into these two programs were initiated.

CNBC previously announced that millions of COVID-19 funds have been laundered through online investment platforms.

NBC News reported in February that most of the 50 state employment agencies were unaware of the full extent of their losses.

“I can imagine this will take a year or two,” said Dotson.

Categories
Entertainment

A Uncommon Peek Inside a Semi-Secret ‘Secret Backyard’

When Marsha Norman suggested the idea to producer Jerry Goehring to stream the 2018 workshop over a deadlocked Broadway revival of “The Secret Garden” as a benefit, he thought it was a great idea.

He just didn’t know if it would be possible.

“I said,” To be honest, I don’t know it’s ever been done before, “said Goehring, a member of the team that was out to bring the magnificent musical, which has never been revived there since the Tony Award, onto Broadway In 1991 he won the production with Mandy Patinkin.

Securing the rights to stream a musical – let alone a workshop, footage that should never see the light of day and show actors in their harshest form – can be complicated.

But it helped that Norman, the musical’s Pulitzer Prize-winning writer, was already on board – as was new director Warren Carlyle (“After Midnight”) and all 21 actors, including Sierra Boggess (Lily) and Clifton Duncan (Archibald Craven) and Drew Gehling (Neville Craven).

“They all asked ‘Please, what can we do to help?'” Goehring said this week.

The buy-in of all the members involved and the compensation of the actors were the conditions for the Actors’ Equity Association, the union, to give approval for the project, which will benefit the Dramatists Guild Foundation and the Actors Fund.

“They said they rarely get requests for archive footage,” said Goehring, who teamed up with producers Michael F. Mitri and Carl Moellenberg to develop the project. “But if at the end of the day 100 percent of the members on the show agree, we could do it.”

The two-hour workshop, which includes a full run of the show with no costumes or sets, premieres on Thursday, May 6th at 8 p.m. on Broadway on Demand and will remain available until May 9th. It is dedicated to Rebecca Luker, the musical Original Lily, who died in December aged 59, less than a year after announcing she had ALS

“It’s wonderful and terrifying at the same time,” said Carlyle, who directed and choreographed the workshop. “It’s at its roughest, with all of my terrible ideas and some good ideas. It’s really like pulling the curtain back. “

Göhring said the workshop showed the production in its “early stages” – and was never intended to be seen by any kind of audience, let alone the public.

“We weren’t going to invite anyone,” he said, noting that at first the writers just wanted the opportunity to get a first look at the entire show – artistically. “But it turned out to be so special that everyone agreed that we should invite our friends in the industry, including Broadway theater owners, to hear their opinions.”

Based on the 1911 children’s novel by Frances Hodgson Burnett, the musical tells the story of an orphaned English girl whose personality blossoms when she and a sick cousin restored a neglected garden. The original Broadway production brought in three Tonys including Luker, Patinkin, a pre-Hedwig John Cameron Mitchell, and 11-year-old Daisy Eagan, who won Mary Lennox for her performance as heroine.

The revival, Carlyle said, is a “total redesign”. It will offer reduced sets, more intimate orchestrations and a different scenic design. But all of Lucy Simon’s songs are intact, he assured the fans of the original, who just shifted – not that anyone would dare cut “Lily’s Eyes”.

“We joke that we lost a lot of big bushes,” he said. “A lot of the big scene transitions from the early 1990s have been eliminated, so it really goes a lot better.”

It is clear, said Carlyle, that the workshop is a rough draft: the garden is imaginary; the dress code more t-shirts than vests. Pieces of tape on the bare floor mark the edge of the stage and the position of the grand pianos. There are few props.

“There are no frills,” he said. “This enables me, as a director, to ensure that we understand the story correctly.”

To keep track of scene changes, the team added digital renderings by production designer Jason Sherwood (“Rent: Live”) as transitions. But in the end, said Carlyle, the material speaks for itself.

“The book Marsha wrote and Lucy’s music are so powerful that you can be in an empty room with talented artists and move around just like it’s on a Broadway stage,” he said.

There are reasons the Broadway show never got revived: critics said the elaborate set and costumes made the actors struggle to be in focus, and the book was overflowing with supporting characters.

“Whether ‘The Secret Garden’ is a compelling dramatic adaptation of its source or just a beautiful, stately shrine is sure to be the subject of intense public debate,” wrote New York Times theater critic Frank Rich in his review of the original. “For one thing, I often had problems getting the pulse of the show.”

Broadway is still a destination for the future, said Goehring, although the pandemic has set the time axis in motion.

“We are currently not looking for new investments,” he said. “Our only goal is to raise money for nonprofits.”

The 2018 workshop was the last in a series of high-profile iterations of the musical, which included a 2016 concert at Lincoln Center with Ben Platt, Ramin Karimloo and Boggess. David Armstrong directed a production at 5th Avenue Theater in Seattle and the Shakespeare Theater Company in Washington DC in 2016-17.

No cast has yet been determined or the theater secured, but Göhring hopes the orchestrations will take shape in the fall.

“As soon as we’re all back in the same room, we’ll keep working on it,” he said.

“Our ultimate goal is to do this as best we can,” he added. “No matter how long that takes.”

In the secret garden: workshop and livestream experience
May 6th to 9th; livestream.broadwayondemand.com

Categories
Politics

Biden Discloses A few of Trump’s Secret Drone Strike Guidelines

Such intermittent combat activities have been fueled by the advent of armed drone technology and the propensity of transnational terrorist groups to operate from poorly governed areas or failed states with few or no American troops and no effective local government with a police force , including the tribal region of Pakistan, rural Yemen, and parts of Somalia and Libya.

Drone strikes began under the George W. Bush administration and increased during Barack Obama’s first term, along with political and legal battles over reports of civilian casualties and the deliberate murder of an American citizen suspected of terrorism, Anwar al-Awlaki without trial.

In May 2013, Mr. Obama issued a series of rules regulating such operations and intended to limit their excessive use. It required a high-level review by the authorities to determine whether a terrorist suspect posed a threat to the Americans and “almost certain” that no civilian bystanders would be killed.

In October 2017, Mr Trump replaced Mr Obama’s system with a more relaxed and decentralized system. It allowed local operators to decide whether suspects should be attacked because of their status as members of a terrorist group rather than because of their threat as individuals, and as long as the conditions set out in the general operating principles for the area were met.

Many Obama-era national security officials have returned to the Biden administration with expectations that Mr Trump’s changes will be reversed, at least in part. Still, some military and intelligence professionals have rubbed themselves under Obama’s system and said it was too bureaucratic, according to those familiar with internal considerations.

The Trump administration did not disclose that it had developed a new framework for drone strikes in 2017, although The Times reported its existence and some of its key features at the time. Mr Bossert said that at the time he unsuccessfully pushed for his key parts to be downgraded and made public.

“I suggested releasing relevant parts of the directive from the start,” he said. “My suggestion was not followed. Even so, this debate and our core principles of cherishing innocent life should only ever be open to the light of day, even though they only take the evil. “

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Business

N.R.A. Chief Stored Chapter Submitting Secret From Deputies

Wayne LaPierre, the contested executive director of the National Rifle Association, said Wednesday that he had kept his organization’s bankruptcy filing secret from almost all high-ranking officials, including the general counsel, chief financial officer and the top lobbyist. Nor did he brief most of the NRA’s board of directors.

Mr. LaPierre made the comments after practically appearing in a lawsuit in federal bankruptcy court in Dallas. Despite being solvent, the NRA filed for bankruptcy protection in January to bypass regulators in New York, where the NRA has been chartered for a century and a half.

Attorney General Letitia James sued the association in August and tried to close it down for mismanagement and corruption. She is also looking for tens of millions of dollars in missing funds from Mr. LaPierre and three other current and former NRA leaders.

The nonprofit has been embroiled in a scandal over the past two years, and the NRA and its contractors exposed lavish spending – for zegna suits and luxury travel, Mr. LaPierre went to places like Lake Como in Italy and the Atlantis Resort in the Bahamas. Other perks included chartered jets for him and his family, as well as vacationing on a contractor’s yachts known as Illusions and Grand Illusions.

The bankruptcy case is the latest referendum on Mr LaPierre’s 30-year tenure with the gun rights group, which has recently been hit by disputes over how to turn the battle with the New York Attorney General into a battle for free speech, not free perks transform.

“We filed this bankruptcy in order to look for fair legal conditions under which the NRA can thrive and grow in a fair environment, contrary to what we believe to be a toxic, armed, politicized government in New York State,” said LaPierre in his testimony.

The association intends to use the bankruptcy for reintegration in Texas. Mr LaPierre kept the file secret because he feared leaks would jeopardize the scheme.

However, the Attorney General and the NRA’s largest creditor, their former advertising firm Ackerman McQueen, want the case dismissed, claiming that the filing, and in particular the lack of notification to the board, was highly inappropriate.

“The process that Mr. LaPierre followed to file this bankruptcy case is a masterclass in malice and dishonest conduct in itself,” said Monica Connell, an assistant attorney general.

The process that was part of the bankruptcy began Monday to see if the case would continue.

During the two years of turmoil leading up to the trial, the NRA had become unusually quiet, closed its fire-breathing media outlet, NRATV, and separated from its former spokeswoman, Dana Loesch. It was also largely silent during the 2020 presidential election, having played a major role in Donald J. Trump’s election in 2016.

But the organization remains a powerful lobbying force that has transformed the political landscape around arms. His continued influence was evident after two mass shootings in Atlanta and Boulder, Colorado, when gun control demands clashed with strong Republican opposition and the realities of the Senate filibuster.

However, bankruptcy is a risky game for the NRA and a sign of their desperation. Mr. LaPierre and his outside attorney, William A. Brewer III, an architect of the files, could lose control of the organization. In a potential case, if the case is not immediately dismissed, Judge Harlin D. Hale could oust the current management by appointing a trustee to take over the day-to-day business of the NRA. The use of a trustee is rare in large corporate bankruptcies and typically only occurs in cases of fraud, incompetence, or gross mismanagement.

Gregory E. Garman, an attorney for the NRA, argued against such a finding in court this week, saying, “A trustee is indeed a death sentence.”

“The argument that a trustee will secure the future of the NRA is misleading our purpose and role,” said Garman.

The NRA has used the process to argue that the group reformed after making some modest mistakes by mistake. “Compliance has become a lifestyle at the National Rifle Association,” Garman said, admitting that there would be “moderately convulsive” moments in the process.

But these moments undermined the reform claims. Issues that have emerged in the process include that Mr. LaPierre’s longtime assistant Millie Hallow, even after diverting $ 40,000 from the NRA for her personal use, including paying for her son’s wedding, was still busy. (Before being hired by the NRA, Ms. Hallow pleaded guilty to a crime related to stealing money from an art agency she ran.)

The role of John Frazer, the General Counsel of the NRA, was also considered when it was revealed that he had no experience in such a role and only had two years of private practice. He has been left in the dark on important legal decisions, despite being the organization’s chief attorney, and was not given advance notice by Mr LaPierre that the NRA would file for bankruptcy. According to a former aide, Mr LaPierre once said that he would not use Mr Frazer “for my parking tickets”. In a pre-trial filing, Mr. LaPierre admitted that he may have made the comment as “sometime joking”.

Mr LaPierre himself admitted to making mistakes, including failing to report his use of the luxury yachts.

“I now believe it should have been disclosed,” he said.

His testimony is expected to continue on Thursday.

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Health

A Secret Warfare. Many years of Struggling. Will the U.S. Ever Make Good in Laos?

To hear more audio stories from publishers like The New York Times, download Audm for iPhone or Android.

The article was produced in partnership with the Pulitzer Center.

It was a blazing-hot morning in October 2019 on the old Ho Chi Minh Trail, an intricate web of truck roads and secret paths that wove its way across the densely forested and mountainous border between Vietnam and Laos. Susan Hammond, Jacquelyn Chagnon and Niphaphone Sengthong forded a rocky stream along the trail and came to a village of about 400 people called Labeng-Khok, once the site of a logistics base inside Laos used by the North Vietnamese Army to infiltrate troops into the South. In one of the bamboo-and-thatch stilt houses, the ladder to the living quarters was made from metal tubes that formerly held American cluster bombs. The family had a 4-year-old boy named Suk, who had difficulty sitting, standing and walking — one of three children in the extended family with birth defects. A cousin was born mute and did not learn to walk until he was 7. A third child, a girl, died at the age of 2. “That one could not sit up,” their great-uncle said. “The whole body was soft, as if there were no bones.” The women added Suk to the list of people with disabilities they have compiled on their intermittent treks through Laos’s sparsely populated border districts.

Hammond, Chagnon and Sengthong make up the core of the staff of a nongovernmental organization called the War Legacies Project. Hammond, a self-described Army brat whose father was a senior military officer in the war in Vietnam, founded the group in 2008. Chagnon, who is almost a generation older, was one of the first foreigners allowed to work in Laos after the conflict, representing a Quaker organization, the American Friends Service Committee. Sengthong, a retired schoolteacher who is Chagnon’s neighbor in the country’s capital, Vientiane, is responsible for the record-keeping and local coordination.

The main focus of the War Legacies Project is to document the long-term effects of the defoliant known as Agent Orange and provide humanitarian aid to its victims. Named for the colored stripe painted on its barrels, Agent Orange — best known for its widespread use by the U.S. military to clear vegetation during the Vietnam War — is notorious for being laced with a chemical contaminant called 2,3,7,8-Tetrachlorodibenzo-P-dioxin, or TCDD, regarded as one of the most toxic substances ever created.

The use of the herbicide in the neutral nation of Laos by the United States — secretly, illegally and in large amounts — remains one of the last untold stories of the American war in Southeast Asia. Decades later, even in official military records, the spraying of Laos is mentioned only in passing. When the Air Force in 1982 finally released its partially redacted official history of the defoliation campaign, Operation Ranch Hand, the three pages on Laos attracted almost no attention, other than a statement from Gen. William Westmoreland, a former commander of U.S. forces in Vietnam, that he knew nothing about it — although it was he who ordered it in the first place. Laos remained a forgotten footnote to a lost war. To those who followed the conflict’s aftermath intimately, this was hardly surprising. Only in the last two decades has the United States finally acknowledged and taken responsibility for the legacy of Agent Orange in Vietnam, committing hundreds of millions of dollars to aiding the victims and cleaning up the worst-contaminated hot spots there.

While records of spraying operations inside Laos exist, the extent to which the U.S. military broke international agreements has never been fully documented, until now. An in-depth, monthslong review of old Air Force records, including details of hundreds of spraying flights, as well as interviews with many residents of villages along the Ho Chi Minh Trail, reveals that, at a conservative estimate, at least 600,000 gallons of herbicides rained down on the ostensibly neutral nation during the war.

For years, Hammond and Chagnon were aware of the spraying in Laos, but the remote areas affected were almost inaccessible. Finally, in 2017, with new paved roads connecting the main towns, and many smaller villages accessible in the dry season by rough tracks, they were able to embark on systematic visits to the villages of the Bru, the Ta Oey, the Pa Co and the Co Tu, four of the ethnic minorities whose homes straddle the Laos-Vietnam border. It was the first time anyone had tried to assess the present-day impact of the defoliant on these groups.

Of the 517 cases of disabilities and birth defects so far documented by the War Legacies Project in Laos, about three-fourths, like malformed limbs, are identifiable to the untrained eye as conditions of the sorts now linked to exposure to Agent Orange. “When we started the survey, I told American government officials we were doing it and said honestly that we didn’t know what we would find,” Hammond says. “In fact, I hoped we would find nothing. But as it turned out we’ve found a lot.”

Hammond’s requests for both the United States and Laos to acknowledge the long-term effects of the spraying have so far been met with bureaucratic rationalizations for inaction: Congress can do nothing without a clear signal from the Lao government; the Lao government has been hesitant to act without hard data; officials of the United States Agency for International Development in Vientiane have been sympathetic, but other senior embassy officials have waved away the problem. “One said that if we were so interested in what the U.S. had done in Laos, why didn’t we look at what the Soviets and the North Vietnamese had done?” Hammond recalls. “It was like being in a time warp, like dealing with an official in Vietnam in the 1990s. So we’ve been on this endless treadmill.”

So far, these conversations with officials have been informal, but this month she plans to submit the group’s findings to both governments, documenting the extent of the spraying recorded in the Air Force records and the number of disabilities the War Legacies Project has found. That’s when the governments of the United States and Laos will no longer have any reason to avoid taking action that is long overdue.

For Hammond and Chagnon, the personal connection to the war runs deep. Chagnon took time off from college in 1968 to work with Catholic Relief Services in Saigon, later living in a compound near the Tan Son Nhut air base. Even though public opinion had turned sharply against the war since the Tet offensive earlier that year, she wasn’t an antiwar activist. “I’d never been to a demonstration,” she says. “My parents were furious at me for going into a war zone.”

The first jolt to her innocence, she recalls, came when newspapers in Saigon published gruesome photographs of malformed babies and fetuses in Tay Ninh, a heavily sprayed province on the Cambodian border. By the late 1960s, Vietnamese doctors had strong indications that these congenital defects might be connected to the chemical defoliants. By the time Chagnon came home in 1970, the defoliation campaign was about to be shut down amid growing controversy over its possible health effects. But her anxiety increased. Many of the early spraying sorties had taken off from Tan Son Nhut, and she worried about her own exposure and the long-term effects if she had children. Those fears seemed to be confirmed when her daughter, Miranda, was born in 1985 with multiple birth defects. There was no proof that dioxin was responsible, and Miranda’s ailments were treatable with surgery and medication, but that hardly quelled Chagnon’s concerns about Agent Orange.

By this time Chagnon and her husband, Roger Rumpf, a theologian and well-known peace activist, were living in Vientiane and visited remote areas where few outsiders ever ventured. They had heard strange and unsettling stories in Xepon, a small town near the Vietnamese border. Doctors reported a rash of mysterious birth defects. A veterinarian told of farm animals born with extra limbs. There were anecdotal accounts of airplanes trailing a fine white spray. But it was impossible to find out more. “In those days there were no roads into the mountains,” Chagnon says. “You had to walk, sometimes for days.”

Hammond was born in 1965 while her father was serving at Fort Drum in upstate New York — a dark coincidence, she says, “since it was one of the first places they tested Agent Orange.” From there her father’s Army career took the family to Okinawa. Based in Danang, he was responsible for the construction of military installations in I Corps, the northernmost tactical zone in South Vietnam.

Hammond first went to Vietnam in 1991, when talk of normalizing relations was in the air. She fell in love with the place, abandoned thoughts of pursuing a Ph.D., moved to Ho Chi Minh City in 1996 to learn the language and spent the next decade organizing educational exchange programs and conferences to discuss Vietnam’s postwar humanitarian needs. It was at one of these events that she met Chagnon.

Since it began, their project has channeled modest amounts of material support to disabled people — things like a wheelchair ramp or a vocational training course or a brood cow to increase household income — in rural areas of Vietnam that were heavily sprayed. Then, in 2013, Chagnon’s husband died. “After Roger passed away, we started talking about the idea of doing a survey in Laos,” Hammond says. “I think Jacqui saw it as an opportunity to honor his memory.” After protracted negotiations with Lao authorities, the War Legacies Project signed a three-year memorandum of understanding, promising a full report by March 2021.

More than half the cases identified by the War Legacies Project are children age 16 and under. They are the grandchildren of those who were exposed during the war, and possibly even the great-grandchildren, since the people in these villages have traditionally married in their teens. Club feet are commonplace. So are cleft lips, sometimes accompanied by cleft palate. There are disturbing clusters: five babies born with missing eyes in Nong District; a family with five deaf-mute siblings; an inordinate number of short legs, malformed legs and hip dysplasia in Samuoi District — the latter a condition that is easily treatable in infancy, but if neglected will lead to severe pain, a waddling gait and more serious deformity. The rudimentary health care system in rural Laos means that few if any infants even get a diagnosis.

In each village the women visited, groups of elders assembled to share their stories, many in their 70s yet still with sharp memories. At first, they recounted, they had no idea who was spraying and bombing their villages, or why. But in time they learned the names of the airplanes: T-28, C-123, B-52. In most villages, dozens were killed by the bombings or died of starvation. The survivors lived for years in the forests or in caves. They dug earthen shelters, big enough to hide a whole family, and covered them with branches. “We had no rice for nine years,” one old man said. Sugar cane and lemongrass survived the spraying. So did cassava, though it swelled to an outlandish size and became inedible — Agent Orange accelerated the growth of plant tissue, killing most foliage.

For the most part, the old men told their stories dispassionately. But one Pa Co elder in Lahang, a place rife with birth defects, was bitter. He was an imposing 75-year-old named Kalod, tall, straight-backed, silver-haired, wearing a dark green suit with an epauletted shirt that gave him a military bearing. Like most of his people, Kalod saw the border as an artificial construct. During the war, people went back and forth between Laos and Vietnam, he said, depending on which side was being bombed and sprayed at the time. He leaned forward, gesticulating angrily. “Vietnamese people affected by the chemical spraying get compensation,” he complained. “In Laos, we need support from America, like they receive in Vietnam.”

The 600,000 gallons of herbicides dropped in Laos is a fraction of the roughly 19 million that were sprayed on Vietnam, but the comparison is misleading. Between 1961 and 1971, some 18 percent of South Vietnam’s land area was targeted, about 12,000 square miles; in Laos the campaign, which began on the Ho Chi Minh Trail between Labeng-Khok and the Vietnamese border, was compressed in time and space. It was focused on narrow, defined strips of the trail, 500 meters wide (about 1,640 feet), and on nearby crop fields, and the heaviest spraying was concentrated in a four-month period early in the war. It was as intense a ramping-up of the defoliation campaign as in any major war zone in Vietnam at the time.

To make matters worse, the newly examined Air Force records show that the first intensive period of spraying in Laos used not Agent Orange, but the much more toxic Agent Purple, the use of which was discontinued in Vietnam almost a year earlier. Tests showed that the average concentration of TCDD in Agent Purple, a different chemical formulation, was as much as three times higher than in Agent Orange.

Long before the first Marines came ashore in Vietnam in 1965, infiltrators from the North were trickling into the South from the still-rudimentary Ho Chi Minh Trail, and the loyalties of the tribal groups along the border were dubious. In response to the growing insurgency, U.S. Special Forces set up small camps near the border with Laos, notably at Khe Sanh, which later became a gigantic Marine combat base, and in the A Shau valley, later infamous for the battle of Hamburger Hill and seen by U.S. strategists as the most important war zone in South Vietnam.

Operation Ranch Hand was in its infancy. By July 1962, only a handful of missions had been flown, defoliating the perimeters of highways, power lines, railroads and the waterways of the Mekong Delta. The commander of U.S. forces in Vietnam, Gen. Paul D. Harkins, now requested authority to hit six new targets. One of them was the A Shau valley, and it would be the first mission aimed at destroying crops that might feed the enemy. The Joint Chiefs of Staff refused: The location was too sensitive; the valley was right on the border, and the neutrality of Laos was just days from being guaranteed under an international agreement. Harkins pushed back, arguing that the proximity of the unsecured border was precisely the point. Despite President John F. Kennedy’s strong reservations about crop destruction, the mission went ahead.

The following January, a 25-year-old Army captain from the South Bronx arrived at the A Shau base. In February, “We burned down the thatched huts, starting the blaze with Ronson and Zippo cigarette lighters,” he wrote later. “The destruction became more sophisticated. Helicopters delivered 55-gallon drums of a chemical herbicide to us, a forerunner of Agent Orange. … Within minutes after we sprayed, the plants began to turn brown and wither.” The young officer was Colin Powell, future chairman of the Joint Chiefs of Staff and secretary of state. The chemical was Agent Purple. By the end of the defoliation campaign, at least half a million gallons of herbicides would be used in the A Shau valley, making it one of the most heavily sprayed places in Vietnam; thousands eventually became sick or died.

The flow of North Vietnamese troops down the trail only increased, and by late 1965 the C.I.A. was reporting that hundreds of miles of new roads had been built or upgraded to carry trucks. The Air Force was already bombing North Vietnam, so the obvious answer was to escalate the bombing on the Ho Chi Minh Trail in Laos.

But in addition to Laos’s neutrality, there was a second problem: Where exactly was the trail? It ran through some of the most remote and inhospitable terrain on Earth, concealed by dense rainforest, largely invisible to U-2 spy planes, infrared sensors on other aircraft, even low-flying helicopters. The solution was to strip away the forest cover to expose the bombing targets: the truck convoys and logistics centers like Labeng-Khok.

In essence, the initial spraying of Laos was a mapping exercise, formally integrated into a massive bombing campaign called Tiger Hound. In early December 1965, the ungainly C-123 aircraft, the workhorses of the herbicide campaign, crossed the Lao border for the first time. Within a week, the first wave of B-52s hit the Ho Chi Minh Trail.

The details of these air operations in Laos remained largely unknown until 1997, when Chagnon and Rumpf were at a get-together at the U.S. Embassy residences in Vientiane. They were friendly with Ambassador Wendy Chamberlin, who was on her way to Washington, Chagnon recalls. Was there anything they needed? Yes, Rumpf said, you can get the Air Force bombing records for Laos. While you’re at it, said Chagnon, never one to be shy, how about the records on Agent Orange?

By then, Chagnon and Hammond had gotten to know Thomas Boivin, a scientist with a Canadian company called Hatfield Consultants that was completing a landmark study of Agent Orange on the Vietnam side of the border, in the heavily sprayed A Shau valley (today known as the A Luoi valley, named after its main town). The records were in the form of computer punch cards and needed to be painstakingly converted into a database that showed every recorded flight, with its date and the geographical coordinates of where each spray run began and ended. Boivin later calculated that more than half a million gallons of chemicals had been sprayed on Laos, but other declassified Air Force documents show additional amounts not found in those initial records, and several village elders gave persuasive accounts of flights that didn’t seem to conform to the official data.

“I’m sure the records are incomplete,” says Jeanne Mager Stellman, an emerita professor of health policy and management at the Mailman School of Public Health at Columbia University, who played a pivotal role in documenting the spraying in Vietnam and calculating the risks of dioxin exposure for American veterans. “And my understanding is that the guys who were assigned to missions in Laos were sworn to secrecy.” Boivin adds that “the C.I.A. also undoubtedly used herbicides in Laos, but their records have never been declassified.”

In her push to have the U.S. government take responsibility for its actions in Laos, Hammond has been well aware that it took many years for the plight of America’s own veterans and their offspring to be acknowledged, and much longer still before the same compassion was extended to the Vietnamese victims of dioxin. The Agent Orange Act of 1991 was passed only after a bitter 14-year fight by veterans campaigning for recognition that the chronic illnesses that tens of thousands of them were developing might be directly connected to dioxin exposure. Once the legislation passed, it was determined that if you set foot in Vietnam between 1962 and 1975 and suffered from one of the conditions on the growing V.A. list, you were eligible for compensation. This resolution was a matter of political pragmatism rather than hard science. Although there was growing evidence of the toxicity of the herbicides, studies of their health impacts were inconclusive and fiercely contested. But the veterans formed an angry and influential constituency, and politicians had to assuage a good measure of guilt, both their own and that of the general public, over the trauma of those who had fought in a lost war that most Americans preferred to forget.

Accepting responsibility for the horrors visited on the Vietnamese took much longer. Even after diplomatic relations were restored in 1995, Agent Orange was a political third rail. Vietnamese complaints about the effects of the herbicides on human health — raising issues of reparations, corporate liability and possible war crimes — were dismissed as propaganda. American diplomats were forbidden even to utter the words. It was not until around 2000 that the United States was finally forced to acknowledge its obligations, after Hatfield Consultants completed its study of the impact of dioxin and showed U.S. officials incontrovertible evidence of how TCDD moved up the food chain, entered the human body and was transmitted to infants through breast milk.

Reconciliation between the United States and Vietnam was an intricate dance that depended on reciprocal steps to untangle the three most contentious legacies of the war. Once Washington had secured full cooperation in accounting for Americans missing in action, it began to aid Vietnam’s efforts to remove the vast amount of unexploded ordnance that still littered its fields and forests, killing and maiming tens of thousands. These steps, plus Hatfield’s breakthrough study, set the stage finally for the two countries to deal with Agent Orange, the most intractable problem of all.

The United States’ relationship with Laos has followed a similar sequence. Since the late 1980s, joint American-Lao teams have conducted hundreds of missions searching for the remains of aircrew who went missing on bombing missions, and over the last quarter-century Washington has committed more than $230 million to ordnance removal and related programs. The missing step has been Agent Orange, but lacking any data on its human impact, the Lao government has had little incentive to raise such a historically fraught issue. Few government soldiers fought in the sprayed areas, which were controlled by the North Vietnamese, so there were no veterans clamoring for recognition of their postwar sufferings. “In Vietnam, the magnitude of the problem made it impossible to ignore,” Hammond says. “But in Laos it was on a smaller scale, and in remote places outside of the political mainstream.”

All these years later, the mountainous border strip in the southern Lao panhandle is still a landscape defined by war and disease. Unexploded bombs are everywhere. The road that follows the Ho Chi Minh Trail south is a kind of living archive of the conflict, in which its remnants and relics have been absorbed into the fabric of everyday life. Men fish in boats made from the jettisoned fuel tanks of American fighter-bombers. Bomb craters from B-52 strikes are everywhere. Some are now fish ponds in the middle of the rice paddies.

Cluster-bomb casings have morphed into vegetable planters or substitute for wooden stilts to support the thatched huts that store rice, frustrating the claws of hungry rats. Everywhere the village soundtrack is the dull clang of cowbells made from sawed-off projectiles. “These are our gifts from the villagers of America,” one old man told me.

Once or twice the War Legacies team had to turn back, defeated by roads that were impassable after recent monsoon floods. Halfway to the village of Lapid, the four-wheel-drive vehicle ground to a halt in the hardened mud. Chagnon climbed out and paced up and down the steep slope, inspecting ruts that were deep enough to swallow a person whole. There was no way through. It was frustrating, because Lapid had been hit hard. An Operation Ranch Hand plane with its full load of chemicals had been shot down in the nearby hills, and after the war villagers called the area the “Leper Forest” for the high incidence of cancers and birth defects. On an earlier visit to Lapid, the War Legacies Project found a paralyzed baby girl, a 4-year-old with a club foot, a teenager born without eyes.

The survey has been a slow and laborious process. Since 2017, the women have visited scores of villages in heavily sprayed districts in two of the four border provinces that were targeted: Savannakhet and Salavan. In each village, they note the age and gender of each person affected, a description of their condition — with a firm diagnosis where possible — and a comment on any who might benefit from referral to a hospital in the provincial capital or in Vientiane. They exclude disabilities that are clearly unrelated to dioxin exposure, like the large number of limbs lost to cluster-munition bomblets. Their October 2019 trip was designed mainly to check up on cases they had already recorded, but they also found several new ones, like the boy in Labeng-Khok.

Hammond recognizes the limitations of their work. Some of their findings need to be verified by medical experts. “We’re not doctors or geneticists,” she says. Yet she, Chagnon and Sengthong are the first to try in Laos what has long been routine in Vietnam, where dioxin-related disabilities are logged systematically through commune-level surveys and household questionnaires and where victims receive small government stipends, and in some cases humanitarian aid from the United States.

It was Hatfield Consultants who unlocked the door to that aid, first through its four-year investigation of the A Luoi valley and then through subsequent studies of the former Danang air base. There had never been any secret about the huge volume of defoliants used in Vietnam, and the evidence of congenital disabilities in the sprayed areas was inescapable. Hatfield joined up the dots, showing how the two were connected and how dioxin could be transmitted from one generation to the next. But that was not Hatfield’s only insight. According to what it called the “hot spot” theory, the ongoing risk of present-day exposure was greatest around former military installations like the Special Forces base at A Shau, where the chemicals had been stored or spilled. Boivin wondered whether there might be similar dioxin hot spots on the Lao side of the border.

In 2002, Laos signed the Stockholm Convention on Persistent Organic Pollutants, a class of 12 “forever chemicals” including the dioxin family. All signatories were obligated to report on the extent of contamination in their countries. Boivin got a small grant from a U.N. agency to investigate dioxin in Laos, as the nation had little scientific expertise of its own. He found very little, but pursuing his hunch about Agent Orange, he made an arduous trip into the remote border areas, where it was strongly suspected that the C.I.A. had built secret airstrips, the kind of facilities that might have been used by herbicide planes and that would have been routinely sprayed to keep down vegetation, as they were in Vietnam.

Near a village called Dak Triem, he noticed a strikingly flat piece of land. Yes, the village elders said, it had once been an airstrip. Scavenging for scrap metal after the war, they found some barrels painted with orange stripes. Boivin had time to do no more than some perfunctory sampling, but he found elevated concentrations of TCDD, enough to classify the site as a possible hot spot and recommend further investigation. He and Hammond had known each other for years, and in 2014, with funding from Green Cross Switzerland and the European Space Agency, they collaborated on a more detailed report, which included a chronological table of all the known herbicide flights in Laos and a list of hundreds of clandestine C.I.A. facilities that might pose an ongoing health risk.

Boivin submitted his reports to the Lao government, but they gained little traction. This lack of interest might seem startling, but to veteran Laos watchers it comes as no surprise. “Things move slowly and cautiously there,” says Angela Dickey, a retired foreign-service officer who served as deputy chief of mission in Vientiane. “For an overworked midlevel official, there’s no real incentive to act on something like this. Only people at the very highest level can consider or speak about controversial issues.”

But there was a deeper reason for the lack of action on Boivin’s findings. He had made a preliminary estimate of the volume of defoliants used in Laos and found one contaminated air base. But he had never set out to collect data on the human impact. That was the missing piece of the puzzle that had been assembled in Vietnam, and that the War Legacies Project, using further Green Cross funding, set out to find.

When the United States finally agreed to clean up the Danang and Bien Hoa air bases in Vietnam, the two main hubs of Operation Ranch Hand, and aid the victims of Agent Orange in that country, it was an integral part of building trust between former enemies who increasingly see themselves as strategic allies and military partners. (Today, Bien Hoa is an important Vietnamese Air Force base.) In one of the larger oddities of history, the most painful legacy of the war has become a cornerstone of reconciliation.

In 2019, U.S.A.I.D. made a new five-year commitment to provide another $65 million in humanitarian aid to Vietnamese people with disabilities “in areas sprayed with Agent Orange and otherwise contaminated by dioxin.” The funds are channeled through the Leahy War Victims Fund, named for its creator, Senator Patrick Leahy, a Democrat from Hammond’s home state, Vermont, who for years has led the effort to help victims of Agent Orange in Vietnam. So why would the same logic not apply in Laos? “We weren’t aware of significant spraying in Laos,” Leahy said by email, “Nor of people with disabilities in those areas that are consistent with exposure to dioxin. But if that is what the data shows, then we need to look at it and discuss with the government of Laos what could be done to help those families.”

Hammond has met several times with Leahy’s longtime aide Tim Rieser, who seems eager to see what the War Legacies Project has found when it presents its report to his boss this month. “We have our work cut out for us in Vietnam,” he says, “but we’d also want to know what was done in Laos, since clearly those who were involved” — meaning wartime political and military leaders — “have not made a point of making it widely known. I’ve always approached this as doing what’s necessary to solve the problem, and if there’s more to the problem than we knew, then we need to deal with it.”

Hammond is painfully aware that bureaucratic wheels turn slowly; that Leahy, after 46 years in the Senate, may not be there much longer; and that Vietnam will always be the front-burner issue. In principle, the smaller scale of what’s needed should make it easier to address. “Even $3 million, which is what the U.S. started off with in Vietnam, would go a long way in Laos,” Hammond says. Meanwhile, the affected people are running out of time. Nine children under the age of 9 on the War Legacies Project list have already died.

U.S.A.I.D. already has an active disabilities program in Laos, which includes help for people injured by unexploded bombs. “All we need to do,” Hammond says, “is add the language we use now for Vietnam, earmark some money for ‘areas sprayed by Agent Orange and otherwise contaminated by dioxin.’ That one little sentence. That’s all it takes.”

George Black is a British author and journalist living in New York. He is writing a book about the long-term human and political legacies of the Vietnam War, in Vietnam and Laos and in the United States. Christopher Anderson is the author of seven photographic books, including “Pia.” He lives in Paris.

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Business

Victoria’s Secret guardian L Manufacturers raises forecast, says CFO is retiring

People walk past a Victoria’s Secret store in Barcelona.

John Milner | LightRocket | Getty Images

Victoria’s secret parent company L Brands shares rebounded Thursday after raising their quarterly outlook. They said they had strong sales in January and reiterated their plans to separate their businesses.

It also announced long-time CFO Stuart Burgdoerfer’s plans to retire in August. A search for his replacement is ongoing.

Burgdoerfer was the interim CEO of Victoria’s Secret. He is immediately replaced in this role by Martin Waters, who is currently CEO of Victoria’s Secret Lingerie.

The company raised its earnings guidance for the fourth quarter from $ 2.70 to $ 2.80 per share to $ 2.95 to $ 3.00 per share. Sales in the same store are expected to increase 10% in the quarter, which includes a 22% increase at Bath & Body Works and a 3% decrease at Victoria’s Secret.

The stock closed at $ 48.07 on Thursday, up more than 9%. They hit a 52-week high of $ 49.12 earlier in the day. At the close of trading on Thursday, they were up about 102% last year, bringing the company’s market value to $ 13.37 billion.

L Brands plans to separate its two brands, Victoria’s Secret and the faster growing Bath & Body Works, by August.

In a press release, the company said its board of directors had received updates from its financial advisors Goldman Sachs and JPMorgan at a meeting in January and was considering a public company demerger or sale of the business.

L Brands closed a deal to sell Victoria’s Secret last year, but it fell apart. Private equity firm Sycamore Partners agreed to acquire a majority stake in Victoria’s Secret for $ 525 million. This would have privatized the brand. However, it was scrapped in May when the pandemic temporarily closed stores and added to Victoria’s Secret challenges.

The company has gone through a reorganization to stabilize its flagship brand. During the pandemic, the company benefited from strong sales from its other retail chain, Bath & Body Works, as Americans stock up on soap and hand sanitizer.

A stronger than expected Christmas season was reported last month. In the nine weeks ending January 2, sales in the same store rose 5% as shoppers bought pajama pants and candles. Sales in the same store decreased 3% in the comparable nine weeks of the previous year.

The company will announce its fourth quarter results on February 24th.