Secret message found with carrier pigeon may never be deciphered

British man finds carrier pigeon skeleton in his fireplace with unbreakable secret code (Reuters)

Before military forces had secure cell phones and satellite communications, they used carrier pigeons. The highly trained birds delivered sensitive information from one location to another during  World War II. Often, the birds found the intended recipient. But not always.

A dead pigeon was recently discovered inside a chimney in Surrey, England. There for roughly 70 years, the bird had a curious canister attached to its leg. Inside was a coded message that has stumped the experts.

The code features a series of 27 groups of five letters. According to Reuters, nobody from Britain’s Government Communications Headquarters has been able to decipher it. The message was sent by a Sgt. W. Scott to someone or something identified as “Xo2.”

A spokesperson remarked, “Although it is disappointing that we cannot yet read the message brought back by a brave carrier pigeon, it is a tribute to the skills of the wartime code-makers that, despite working under severe pressure, they devised a code that was indecipherable both then and now.”

The bird was discovered by a homeowner doing renovations earlier this month. In an interview with Reuters, David Martin remarked that bits of birds kept falling from the chimney. Eventually, Margin saw the red canister and speculated that it might contain a secret message. And it seems as if the message will always be secret.

Carrier pigeons played a vital role in wars due to their incredible homing skills. All told, U.K. forces used about 250,000 of the birds during World War II.

Wireless News Headlines – Yahoo! News

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'Dallas' star Larry Hagman dies in Texas

LOS ANGELES (AP) — Larry Hagman, whose predatory oil baron J.R. Ewing on television's long-running nighttime soap opera "Dallas" became a symbol for 1980s greed and coaxed forth a Texas-sized gusher of TV ratings, has died. He was 81.

Hagman, who returned as J.R. in a new edition of "Dallas" this year, passed away Friday afternoon due to complications from his battle with cancer, according to a statement from the family provided to The Associated Press by Warner Bros., producer of "Dallas."

"Larry was back in his beloved hometown of Dallas, re-enacting the iconic role he loved the most," the family said. "Larry's family and closest friends had joined him in Dallas for the Thanksgiving holiday."

Linda Gray, his on-screen wife in the original series and the sequel, was with Hagman when he died in a Dallas hospital, said her publicist, Jeffrey Lane.

"He brought joy to everyone he knew. He was creative, generous, funny, loving and talented, and I will miss him enormously. He was an original and lived life to the fullest," Gray said in a statement.

Hagman was diagnosed in 1992 with cirrhosis of the liver and acknowledged that he had drank heavily for years. In 1995, a malignant tumor was discovered on his liver and he underwent a transplant.

Years before "Dallas," Hagman had gained TV fame as a nice guy with the fluffy 1965-70 NBC comedy "I Dream of Jeannie," in which he played Capt. Tony Nelson, an astronaut whose life is disrupted when he finds a comely genie, portrayed by Barbara Eden, and takes her home to live with him.

He also starred in two short-lived sitcoms, "The Good Life" (NBC, 1971-72) and "Here We Go Again" (ABC, 1973). His film work included well-regarded performances in "The Group," ''Harry and Tonto" and "Primary Colors."

But it was Hagman's masterful portrayal of the charmingly loathsome J.R. that brought him his greatest stardom. The CBS serial drama about the Ewing clan and those in their orbit aired from April 1978 to May 1991.

The "Who shot J.R.?" story twist, in which Hagman's character was nearly murdered in a cliffhanger episode, fueled international speculation and millions of dollars in betting-parlour wagers. It also helped give the series a ratings record for the time.

When the answer was revealed in a November 1980 episode, an average 41 million viewers tuned in to make "Dallas" the second most-watched entertainment show of all time, trailing only the "MASH" finale in 1983 with 50 million viewers.

It was J.R.'s sister-in-law, Kristin (Mary Crosby) who plugged him — he had made her pregnant, then threatened to frame her as a prostitute unless she left town — but others had equal motivation.

Hagman played Ewing as a bottomless well of corruption with a charming grin: a business cheat and a faithless husband who tried to get his alcoholic wife, Sue Ellen (Linda Gray), institutionalized.

"I know what I want on J.R.'s tombstone," Hagman said in 1988. "It should say: 'Here lies upright citizen J.R. Ewing. This is the only deal he ever lost.'"

On Friday night, Victoria Principal, who co-starred in the original series, recalled Hagman as "bigger than life, on-screen and off. He is unforgettable, and irreplaceable, to millions of fans around the world, and in the hearts of each of us, who was lucky enough to know and love him."

Ten episodes of the new edition of "Dallas" aired this past summer and proved a hit for TNT. Filming had been completed for five of the episodes for the second season and work on the sixth episode was in progress, the network said.

There was no immediate comment from Warner or TNT on how the series would deal with Hagman's loss.

In 2006, Hagman did a guest shot on FX's drama series "Nip/Tuck," playing a macho business mogul. He also got new exposure in recent years with the DVD releases of "I Dream of Jeannie" and "Dallas."

The Fort Worth, Texas, native was the son of singer-actress Mary Martin, who starred in such classics as "South Pacific" and "Peter Pan." Martin was still in her teens when he was born in 1931 during her marriage to attorney Ben Hagman.

As a youngster, Hagman gained a reputation for mischief-making as he was bumped from one private school to another. He made a stab at New York theater in the early 1950s, then served in the Air Force from 1952-56 in England.

While there, he met and married young Swedish designer Maj Axelsson. The couple had two children, Preston and Heidi, and were longtime residents of the Malibu beach colony that is home to many celebrities.

Hagman returned to acting and found work in the theater and in such TV series as "The U.S. Steel Hour," ''The Defenders" and "Sea Hunt." His first continuing role was as lawyer Ed Gibson on the daytime serial "The Edge of Night" (1961-63).

He called his 2001 memoir "Hello Darlin': Tall (and Absolutely True) Tales about My Life."

"I didn't put anything in that I thought was going to hurt someone or compromise them in any way," he told The Associated Press at the time.

After his transplant, he became an advocate for organ donation and volunteered at a hospital to help frightened patients.

"I counsel, encourage, meet them when they come in for their operations, and after," he said in 1996. "I try to offer some solace, like 'Don't be afraid, it will be a little uncomfortable for a brief time, but you'll be OK.' "

He also was an anti-smoking activist who took part in "Great American Smoke-Out" campaigns.

___

AP Television Writer Frazier Moore in New York contributed to this report.

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Scientists See Advances in Deep Learning, a Part of Artificial Intelligence

Hao Zhang/The New York Times

A voice recognition program translated a speech given by Richard F. Rashid, Microsoft’s top scientist, into Mandarin Chinese.

Using an artificial intelligence technique inspired by theories about how the brain recognizes patterns, technology companies are reporting startling gains in fields as diverse as computer vision, speech recognition and the identification of promising new molecules for designing drugs.

The advances have led to widespread enthusiasm among researchers who design software to perform human activities like seeing, listening and thinking. They offer the promise of machines that converse with humans and perform tasks like driving cars and working in factories, raising the specter of automated robots that could replace human workers.

The technology, called deep learning, has already been put to use in services like Apple’s Siri virtual personal assistant, which is based on Nuance Communications’ speech recognition service, and in Google’s Street View, which uses machine vision to identify specific addresses.

But what is new in recent months is the growing speed and accuracy of deep-learning programs, often called artificial neural networks or just “neural nets” for their resemblance to the neural connections in the brain.

“There has been a number of stunning new results with deep-learning methods,” said Yann LeCun, a computer scientist at New York University who did pioneering research in handwriting recognition at Bell Laboratories. “The kind of jump we are seeing in the accuracy of these systems is very rare indeed.”

Artificial intelligence researchers are acutely aware of the dangers of being overly optimistic. Their field has long been plagued by outbursts of misplaced enthusiasm followed by equally striking declines.

In the 1960s, some computer scientists believed that a workable artificial intelligence system was just 10 years away. In the 1980s, a wave of commercial start-ups collapsed, leading to what some people called the “A.I. winter.”

But recent achievements have impressed a wide spectrum of computer experts. In October, for example, a team of graduate students studying with the University of Toronto computer scientist Geoffrey E. Hinton won the top prize in a contest sponsored by Merck to design software to help find molecules that might lead to new drugs.

From a data set describing the chemical structure of 15 different molecules, they used deep-learning software to determine which molecule was most likely to be an effective drug agent.

The achievement was particularly impressive because the team decided to enter the contest at the last minute and designed its software with no specific knowledge about how the molecules bind to their targets. The students were also working with a relatively small set of data; neural nets typically perform well only with very large ones.

“This is a really breathtaking result because it is the first time that deep learning won, and more significantly it won on a data set that it wouldn’t have been expected to win at,” said Anthony Goldbloom, chief executive and founder of Kaggle, a company that organizes data science competitions, including the Merck contest.

Advances in pattern recognition hold implications not just for drug development but for an array of applications, including marketing and law enforcement. With greater accuracy, for example, marketers can comb large databases of consumer behavior to get more precise information on buying habits. And improvements in facial recognition are likely to make surveillance technology cheaper and more commonplace.

Artificial neural networks, an idea going back to the 1950s, seek to mimic the way the brain absorbs information and learns from it. In recent decades, Dr. Hinton, 64 (a great-great-grandson of the 19th-century mathematician George Boole, whose work in logic is the foundation for modern digital computers), has pioneered powerful new techniques for helping the artificial networks recognize patterns.

Modern artificial neural networks are composed of an array of software components, divided into inputs, hidden layers and outputs. The arrays can be “trained” by repeated exposures to recognize patterns like images or sounds.

These techniques, aided by the growing speed and power of modern computers, have led to rapid improvements in speech recognition, drug discovery and computer vision.

Deep-learning systems have recently outperformed humans in certain limited recognition tests.

Last year, for example, a program created by scientists at the Swiss A. I. Lab at the University of Lugano won a pattern recognition contest by outperforming both competing software systems and a human expert in identifying images in a database of German traffic signs.

The winning program accurately identified 99.46 percent of the images in a set of 50,000; the top score in a group of 32 human participants was 99.22 percent, and the average for the humans was 98.84 percent.

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TV Sports: Change in YES Ownership Unlikely to Alter Yankees-Heavy Format

Michael Heiman/Getty Images

News Corporation on Tuesday agreed to purchase a 49 percent stake in the YES Network.

Fear not, Yankees fans: the YES Network’s Yankees propaganda will continue even if News Corporation increases its ownership stake in the channel from 49 percent, which it agreed to purchase Tuesday, to as much as 80 percent in three years.

The deal cedes to the Yankees continued control of pinstripe content even if the team owns as little as 20 percent.

And why would Fox Sports, the division of News Corporation that owns 19 regional sports networks, want to alter YES’s Yankees propaganda formula? It has served YES so well that it will be valued at $3.8 billion if News Corporation buys majority control. Carrying the Nets did not make YES valuable. It’s about Yankees games; the pre- and postgame shows; the “Yankeeography” series and replays of games; and the “Yankee Classics,” in which the Yankees never lose. (They have lost classic games, but YES does not show them.)

Earlier this year, when YES was celebrating its 10th anniversary, I talked to Randy Levine, the Yankees’ president, and Tracy Dolgin, who runs YES, about the unashamedly pro-Yankees slant of the network’s announcers and the absence of a news operation like the one on SNY. “We tell our people if you want to be bipartisan and fair, don’t work for YES,” Levine said.

As for carrying a nightly news show, like SNY’s “SportsNite,” Dolgin said: “News is a loser. If you want news, watch ESPN.”

Fox will, of course, bring some of its programming to YES. That was one reason to make the deal. It needs a New York outpost, especially as it starts a national sports network that is, for now, called Fox Sports 1. But tinker with the propaganda? Never.

Now, if the Steinbrenner family is willing to sell some of its stake in YES, or all of it, is it willing to sell the team?

Hardly likely. There seems to be no incentive unless Hal Steinbrenner eventually cannot envision the Yankees without Derek Jeter. The Yankees owners will continue to get an annual rights fee from YES, now about $85 million. That will rise at about 4 percent annually for a while, and, eventually, to 5 to 7 percent a year. Through their holding company, Yankee Global Enterprises, the Yankees will get $420 million — half of it now, and half of it in three years — from News Corporation to keep the team on YES through 2042.

Another reason the Steinbrenner family might be averse to selling the team: the tax bill they would be handed upon a sale.

The evolution of YES would have been quite different if another deal had gone through.

In 2000, Dave Checketts, then the president of Madison Square Garden, flew to Florida to meet with George Steinbrenner and two of the New Jersey Nets’ owners, Ray Chambers and Lewis Katz. This was after the Yankees and the Nets ownership groups had merged into YankeeNets.

The subject of the meeting was to create a Yankees-centric network together, Checketts said. James L. Dolan, then the chief executive of Cablevision, which owned the Garden, had given him the go-ahead to try.

“Let’s take a shot at this deal,” Checketts recalled telling Dolan.

Checketts, also in an interview earlier this year, said that the joint venture was intended to keep the Yankees and the MSG Network together. For 13 years, MSG had spent nearly $550 million to carry the Yankees. The Yankees wanted their own network and MSG was looking at the distinct possibility of losing its most dominant programming, a staple from March to September.

Checketts suggested that the Yankees get a 40 percent stake in the proposed network, which would have converted what was then called Fox Sports New York — now MSG Plus — into a channel with the Yankees, the Islanders and the Nets. Cablevision would have run the network, so the pronounced Yankees bias would not have been so apparent. Checketts’s bosses subsequently told him he had made too rich a proposal. And Steinbrenner was seeking 50 percent, said another executive involved in the talks, so a deal could not be reached.

With that deal dead, a rancorous legal battle developed over the Yankees’ intent to leave MSG to start their own network. The Yankees paid a $30 million escape fee and started with Goldman Sachs and Providence Equity as their primary partners. Now, having enjoyed YES’s profits and benefited from previous bank refinancings of the channel, they are all cashing out to some extent.

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Lido Beach Journal: Lido Beach Towers Face Major Work After Storm

LIDO BEACH, N.Y. — In the beginning were the marshy sandbars on the Atlantic bought in 1906 by a flamboyant entrepreneur for $3 million, envisioned as the site of an American Venice.

Over the years, there was a little of everything — the elephants brought to Long Beach Island as a publicity stunt for the construction of the Boardwalk; the pink, six-story, 300-room Moorish-style Lido Beach Hotel, where the rich and famous danced under the open skylight of its circular nightclub; the building’s stint as housing for delegates and officials during the earliest days of the United Nations; dreary declines, triumphant rebirths.

It is not entirely clear when anyone will be able to return to what is now called Lido Beach Towers, the former hotel, currently a 184-unit condominium property that was perhaps the most storied edifice on the Long Island shore to feel Hurricane Sandy’s full wrath. But grand dreams built on shifting sands often provide unexpected plot turns and strokes of good or ill luck. Hurricane Sandy is only the latest example.

At the towers, work crews are beginning a cleanup, and grim-faced residents shuttle in and out to survey damage and ask questions about Federal Emergency Management Agency assistance and insurance coverage. While about 60 residents rode out the storm, water and sand inundated the ground floor, reaching almost to the ceiling in the units closest to the beach. The storm damaged or demolished about 18 first-floor apartments, destroyed the building’s electrical system and elevators, and obliterated outdoor perimeter walls and landscaping.

The building’s management company, Cooper Square Realty of New York, says the building appears to be structurally sound but was among the hardest hit of the company’s 40 buildings and could take six to eight months to reopen.

The property owes its existence to William H. Reynolds, an entrepreneur, promoter, racetrack builder and yachtsman with a taste for risk who developed parts of Brooklyn, created Coney Island’s Dreamland amusement park and built Laurelton, Queens, at the end of the 19th century and beginning of the 20th.

In 1906, at the age of 39, he turned his attention to the resort community of Long Beach, employing dredging so extensive it was compared to the work on the Panama Canal. He built the Boardwalk and the village of Long Beach Estates and became mayor of Long Beach. But it was a rocky ride. His company went bankrupt. He was convicted of grand larceny but had his conviction overturned.

And then he built his ultimate fantasy, the $5 million luxury hotel project just east of Long Beach in Lido Beach. It officially opened just as the stock market was crashing in 1929.

Mr. Reynolds died two years later, his full plan for a seaside wonderland unfinished. But the hotel, with its bubble-gum-pink stucco facade and pair of gilded turrets, became the area’s signature building and a Gatsbyesque haven for socialites and celebrities in tuxedos and gowns.

That first golden age was short lived. When the Navy occupied Long Beach Island during World War II, the hotel became an amphibious base and discharge center. When the United Nations opened at its temporary home in Lake Success, N.Y., in 1946, some 600 delegates and staff members lived there briefly with light green and deep aqua furnishings, and state-of-the-art hide-a-bed sofas and electric blankets.

It returned to hotel use, in the end as a kosher resort with Catskill-style entertainment, and then, its prospects sagging, it became condominiums with the feel of a resort.

The grande dame of a building even has its own grande dame, Dodo Burke, who at 98 has lived there for 50 years, first at the hotel when it was open just for the summer, now in a fourth-floor condominium facing the ocean. She remembers the hotel with its chamber and jazz ensembles playing from the Romeo and Juliet balcony during dinner, the big-name entertainers like Milton Berle and Robert Goulet and the rules for the cabanas — Row A for children with nannies, Row B for the card players, Rows C and D for families. She figures the towers will come back, minus a few of the older residents and maybe with a bit of the luster, like the gorgeous landscaping, lost.

“I compare it to Versailles,” she said. “It will come back. It has to. You’re talking almost 100 years of beautiful things. I’m already looking forward to the party.”

Along with the destruction, there was a bit of luck. In January 2005, the towers’ board began a wholesale renovation that grew to $18 million amid division about the cost and past neglected maintenance. There was a new facade, new roof, windows, doors, terraces and emergency stairwells, even a return to the bubble-gum-pink exterior.

“We were ready for this storm even though we didn’t know that we were building for this storm,” said Gary Weiss, the board chairman.

Still, the toll for residents, especially those on the first floor without flood insurance, will be immense, and it is not yet clear who will pay for what. One thing that did survive, though, was the painting of the original grand plans for the project.

Indeed, with climate change and rising concerns about building on the ocean, the Pink Lady, in some ways, is just as quixotic an undertaking now as it was when Reynolds first rolled the dice. And, even with the wreckage, it is perhaps just as alluring.

Leonard Feigenbaum, who has a duplex on the first and second floors, was one of those who rode out the storm. Standing among the flooded-out cars in the parking lot, seaweed clinging to ruined chassis, he channeled his inner Reynolds and looked toward the next act.

“This is the best place in the world to live,” he said.

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Halle Berry's ex arrested after fight at her house

LOS ANGELES (AP) — Halle Berry's ex-boyfriend Gabriel Aubry was arrested for investigation of battery Thursday after he and the Oscar-winning actress's current boyfriend got into a fight at her Hollywood Hills home, police said.

Aubry, 37, was booked for investigation of a battery, a misdemeanor, and released on $20,000 bail, according to online jail records. He's scheduled to appear in court Dec. 13.

Aubry came to Berry's house Thanksgiving morning and police responded to a report of an assault, said Los Angeles Police Officer Julie Boyer. Aubry was injured in the altercation and was taken to a hospital where he was treated and released.

Emails sent to Berry's publicist, Meredith O'Sullivan, and Aubry's family law attorney, Gary Fishbein, were not immediately returned.

Berry and Aubry have been involved in a custody dispute involving their 4-year-old daughter, Nahla. The proceedings were sealed because the former couple are not married. Both appeared in the case as recently as Nov. 9, but neither side commented on the outcome of the hearing.

Berry has been dating French actor Olivier Martinez, and he said earlier this year that they are engaged.

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Recipes for Health: Pear Clafoutis — Recipes for Health

Andrew Scrivani for The New York Times NYTCREDIT:

If you don’t want to make a crust but want something tartlike for your Thanksgiving dessert, a clafoutis, which is something like a cross between a flan and a pancake, is a great choice. It’s a very easy dessert, yet it’s always impressive.

2 tablespoons pear eau-de-vie or liqueur (optional)

2 tablespoons mild-flavored honey, like clover

2 pounds ripe but firm pears, like Bartlett or Comice

3 large eggs

1 vanilla bean, scraped

1/3 cup sugar

2/3 cup sifted unbleached white flour

1/2 cup plain yogurt

1/2 cup milk

pinch of salt

1. Combine the pear eau-de-vie and the honey in a bowl. Peel, core and slice the pears and toss with the mixture. Let sit for 30 minutes.

2. Preheat the oven to 375 degrees. Butter a 10-inch ceramic tart pan or baking dish.

3. In the bowl of an electric mixer or with a whisk, beat together the eggs, the seeds from the vanilla bean and the sugar. Pour off the marinade from the pears and add to the egg mixture. Gradually beat in the flour, then beat in the yogurt, milk and salt.

4. Arrange the pears in the baking dish. Pour on the batter. Place in the oven and bake 40 to 50 minutes, until the top is beginning to brown. Serve hot or warm.

Yield: 8 servings.

Advance preparation: Although this is best served warm, you can allow it to cool completely and serve it at room temperature. It will hold for several hours out of the refrigerator. Leftovers make a nice breakfast treat.

Nutritional information per serving: 195 calories; 2 grams fat; 1 gram saturated fat; 0 grams polyunsaturated fat; 1 gram monounsaturated fat; 71 milligrams cholesterol; 40 grams carbohydrates; 4 grams dietary fiber; 47 milligrams sodium; 5 grams protein

Martha Rose Shulman is the author of “The Very Best of Recipes for Health.”

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News Analysis: Case Casts a Shadow on a Hedge Fund Mogul

In 2010, the billionaire hedge fund manager Steven A. Cohen gave a rare interview to Vanity Fair. He said that he wanted to combat persistent rumors that his firm, SAC Capital Advisors, routinely violated securities laws by trading on confidential information.

“In some respects I feel like Don Quixote fighting windmills,” Mr. Cohen said at the time. “There’s a perception, and I’m trying to fight that perception.”

Federal prosecutors only heightened that perception on Tuesday, bringing a criminal case against a former SAC employee in what Preet Bharara, the United States attorney in Manhattan, who brought the charges in Federal District Court in Manhattan, called the most lucrative insider trading scheme ever charged.

And for the first time, the evidence suggests that Mr. Cohen participated in trades that the government says illegally used insider information — though prosecutors have not said that Mr. Cohen himself knew the information was confidential, and he has not been charged.

Any prosecution of Mr. Cohen would most likely hinge on the cooperation of Mathew Martoma, the former SAC employee charged in the case. Mr. Bharara said in the charges that Mr. Martoma obtained secret data from a doctor about clinical trials for an Alzheimer’s drug being developed by the companies Elan and Wyeth. The information enabled SAC to avoid losses of almost $194 million on the stocks, which it sold and then bet against, reaping $83 million in profit — a total benefit to the firm of more than $276 million. SAC executed the trades shortly after Mr. Martoma e-mailed Mr. Cohen and said he needed to discuss something important.

As to Mr. Cohen’s potential culpability in the case, the crucial issue is what Mr. Martoma told Mr. Cohen that led SAC to quickly dump $700 million worth of stock. Did he provide his boss details on why he had turned sour on Wyeth and Elan? Specifically, did he share the leak about the drug trial’s negative results and identify the source of the secret information? Through a spokesman, he said he was confident he had acted appropriately.

It appears, for now, that Mr. Martoma will fight the charges. But the crucial question, as it relates to Mr. Cohen, is whether at some point Mr. Martoma will reverse course, admit to insider trading and agree to help the government build a case against his former boss. Without Mr. Martoma’s cooperation, it is unlikely that the prosecutors have enough evidence to charge Mr. Cohen.

“This has all the markings of a case where the government goes after the smaller fish and then pressures them to flip so they can get the whale,” said Bradley D. Simon, a criminal defense lawyer and former federal prosecutor in New York.

The government has several weapons for its effort to persuade Mr. Martoma to agree to a plea, including the stiff sentences for insider trading. Under the federal sentencing guidelines, Mr. Martoma could receive more than 15 years in prison, a term that could be reduced — or avoided altogether — if he agreed to testify against Mr. Cohen.

F.B.I. agents arrested Mr. Martoma, 38, early Tuesday morning at his home in Boca Raton, Fla., a nearly 8,000-square-foot Mediterranean-style mansion on the grounds of the elite Royal Palm Yacht and Country Club. He lives there with his wife, a pediatrician, and three children. A graduate of Duke University and Stanford University’s business school, Mr. Martoma is expected to make an appearance in Federal District Court in Manhattan Monday morning.

Described by a former colleague as low-key and cerebral, Mr. Martoma is one of scores of traders who have earned millions of dollars working under Mr. Cohen and feeding him their best investment ideas. He joined SAC in 2006. In 2008, the year he participated in the alleged illegal trade, the firm paid Mr. Martoma a $9.3 million bonus. But SAC fired him in 2010 after two years of subpar performance.

Charles A. Stillman, a lawyer for Mr. Martoma, said on the day of his arrest, “What happened today is only the beginning of a process that we are confident will lead to Mr. Martoma’s full exoneration.”

It is no secret that the government has been circling Mr. Cohen since the middle of last decade, when it began its crackdown on insider trading, an investigation that has resulted in more than 70 criminal charges. Prosecutors have already linked five former SAC employees to insider trading while at the fund — securing three convictions — though none of those cases connected Mr. Cohen to any illicit activity. But the complaint filed on Tuesday puts Mr. Cohen at the center of the supposed improper conduct.

Mr. Cohen, 56, is a legend on Wall Street, having amassed a multibillion-dollar fortune by posting phenomenal investment returns averaging about 30 percent over the last two decades. Starting with a $25 million grubstake, SAC now manages about $13 billion and has 900 employees across the globe. Mr. Cohen has also emerged as a major force in the art world, owning an eclectic collection that includes works by Picasso, Warhol and Cézanne.

Prosecutors have constructed their case against Mr. Martoma, and increased the pressure on him, by securing the cooperation of Dr. Sidney Gilman, the doctor who supposedly leaked to him the Alzheimer’s drug’s trial data. The case against Mr. Martoma will depend largely on Dr. Gilman’s credibility as a witness.

Dr. Gilman, 80, a neurologist at the University of Michigan medical school, was hired by Elan and Wyeth to monitor the trial’s safety, which gave him access to secret information about the results. SAC retained Dr. Gilman as a consultant and paid him about $108,000.

At first, Dr. Gilman’s reports on the trial’s progress were positive, and SAC built a position in the two drug makers worth approximately $700 million, according to prosecutors. But then, on July 17, 2008, Dr. Gilman told Mr. Martoma that there were problems with the drug, the government said.

A few days later, Mr. Martoma e-mailed Mr. Cohen that he needed to discuss something “important,” and the two then spoke for 20 minutes, according to court filings. Over the next four days, at Mr. Cohen’s direction, SAC Capital jettisoned its entire position in the two stocks and then placed a big negative bet on the drug makers, the government said.

On July 30, after disclosure of the poor trial results, shares of Elan and Wyeth sank. According to the prosecutors’ calculations, SAC would have lost about $194 million had it kept the stock; taking a short position instead generated profits of about $83 million.

Dr. Gilman and the Justice Department have entered into a nonprosecution agreement under which he will cooperate in exchange for not being criminally charged.

Thus far, any potential evidence against Mr. Cohen is entirely circumstantial. The government’s complaint includes e-mails about secretly selling the Elan and Wyeth shares through esoteric methods like algorithms and dark pools. But that is common practice among large, sophisticated funds that do not want to alert competitors or move the stock too much. Moreover, while SAC dumped its large positions in the two stocks quickly — raising the question of what prompted it to do so — Mr. Cohen is known for a rapid-fire trading style. He frequently moves aggressively in and out of stocks while processing gobs of information fed to him by his underlings.

It would be difficult for a jury to infer anything incriminating just from the way these trades were executed.

The government in this case also lacks the powerful wiretap evidence that it has used to convict dozens others, including Raj Rajaratnam, the head of the Galleon Group. Federal agents did wiretap Mr. Cohen’s home telephone for a short period in 2008, according to a person with direct knowledge of the investigation who spoke only on the condition of anonymity. But it is unclear whether the eavesdropping, which was first reported by The Wall Street Journal, yielded any fruit.

Even without incriminating wiretap evidence, the government has brought cases that rely almost entirely on witnesses testifying against their bosses.

One of those cases is now under way in federal court in Manhattan. Prosecutors are currently trying the former hedge fund portfolio managers Anthony Chiasson of Level Global Investors and Todd Newman of Diamondback Capital Management. Prosecutors say that the two were part of a conspiracy that made about $68 million illegally trading technology stocks.

The outcome of that trial is expected to depend largely on whether the jury believes the testimony of two cooperating witnesses who admitted to the conspiracy — Spyridon Adondakis and Jesse Tortora, former junior analysts at Level Global and Diamondback. The two say they shared secret information with the defendants. Defense lawyers have attacked the witnesses’ credibility, accusing them of lying to avoid prison.

That case, too, has strong ties to SAC. Mr. Chiasson and his co-founder were star traders under Mr. Cohen before starting the now-defunct Level Global. And the owners of Diamondback are both former SAC employees; one is Mr. Cohen’s brother-in-law, Richard Schimel. Diamondback, which continues to operate, has not been accused of wrongdoing.

“SAC’s extraordinary profits have always been something of a market mystery,” said Sebastian Mallaby, the author of “More Money Than God,” a book on the history of hedge funds. “As more and more lawsuits implicate former SAC traders, we may at last understand where SAC’s profits came from.”

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Egypt Leader and Obama Forge Link in Gaza Deal

Lefteris Pitarakis/Associated Press

Israelis in the town of Sderot watched a Palestinian missile on Wednesday, before a cease-fire.

WASHINGTON — President Obama skipped dessert at a long summit meeting dinner in Cambodia on Monday to rush back to his hotel suite. It was after 11:30 p.m., and his mind was on rockets in Gaza rather than Asian diplomacy. He picked up the telephone to call the Egyptian leader who is the new wild card in his Middle East calculations.

Over the course of the next 25 minutes, he and President Mohamed Morsi of Egypt hashed through ways to end the latest eruption of violence, a conversation that would lead Mr. Obama to send Secretary of State Hillary Rodham Clinton to the region. As he and Mr. Morsi talked, Mr. Obama felt they were making a connection. Three hours later, at 2:30 in the morning, they talked again.

The cease-fire brokered between Israel and Hamas on Wednesday was the official unveiling of this unlikely new geopolitical partnership, one with bracing potential if not a fair measure of risk for both men. After a rocky start to their relationship, Mr. Obama has decided to invest heavily in the leader whose election caused concern because of his ties to the Muslim Brotherhood, seeing in him an intermediary who might help make progress in the Middle East beyond the current crisis in Gaza.

The White House phone log tells part of the tale. Mr. Obama talked with Mr. Morsi three times within 24 hours and six times over the course of several days, an unusual amount of one-on-one time for a president. Mr. Obama told aides he was impressed with the Egyptian leader’s pragmatic confidence. He sensed an engineer’s precision with surprisingly little ideology. Most important, Mr. Obama told aides that he considered Mr. Morsi a straight shooter who delivered on what he promised and did not promise what he could not deliver.

“The thing that appealed to the president was how practical the conversations were — here’s the state of play, here are the issues we’re concerned about,” said a senior administration official who spoke on the condition of anonymity to discuss private conversations. “This was somebody focused on solving problems.”

The Egyptian side was also positive about the collaboration. Essam el-Haddad, the foreign policy adviser to the Egyptian president, described a singular partnership developing between Mr. Morsi, who is the most important international ally for Hamas, and Mr. Obama, who plays essentially the same role for Israel.

“Yes, they were carrying the point of view of the Israeli side but they were understanding also the other side, the Palestinian side,” Mr. Haddad said in Cairo as the cease-fire was being finalized on Wednesday. “We felt there was a high level of sincerity in trying to find a solution. The sincerity and understanding was very helpful.”

The fledgling partnership forged in the fires of the past week may be ephemeral, a unique moment of cooperation born out of necessity and driven by national interests that happened to coincide rather than any deeper meeting of the minds. Some longtime students of the Middle East cautioned against overestimating its meaning, recalling that Mr. Morsi’s Muslim Brotherhood constitutes a philosophical brother of Hamas even if it has renounced violence itself and become the governing party in Cairo.

“I would caution the president from believing that President Morsi has in any way distanced himself from his ideological roots,” said Robert Satloff, executive director of the Washington Institute for Near East Policy. “But if the president takes away the lesson that we can affect Egypt’s behavior through the artful use of leverage, that’s a good lesson. You can shape his behavior. You can’t change his ideology.”

Other veterans of Middle East policy agreed with the skepticism yet saw the seeds of what might eventually lead to broader agreement.

“It really is something with the potential to establish a new basis for diplomacy in the region,” said Tamara Cofman Wittes, who was Mr. Obama’s deputy assistant secretary of state for the Middle East until earlier this year and now runs the Saban Center for Middle East Policy at the Brookings Institution. “It’s just potential, but it’s particularly impressive potential.”

The relationship between the two leaders has come a long way in just 10 weeks. Mr. Morsi’s election in June as the first Islamist president of Egypt set nerves in Washington on edge and raised questions about the future of Egypt’s three-decade-old peace treaty with Israel. Matters worsened in September when Egyptian radicals protesting an anti-Islam video stormed the United States Embassy in Cairo.

Peter Baker reported from Washington, and David D. Kirkpatrick from Cairo.

This article has been revised to reflect the following correction:

Correction: November 21, 2012

An earlier version of this article misstated the given name of the director of the Saban Center for Middle East Policy at the Brookings Institution. She is Tamara Cofman Wittes, not Teresa.

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Chevy Chase is leaving NBC's sitcom 'Community'

LOS ANGELES (AP) — The NBC series "Community" will finish the season without Chevy Chase.

Sony Pictures Television said Wednesday that the actor is leaving the sitcom by mutual agreement with producers.

His immediate departure means he won't be included in the last episode or two of the show's 13-episode season, which is still in production.

Chase had a rocky tenure playing a bored and wealthy man who enrolls in community college. The actor publicly expressed unhappiness at working on a sitcom and feuded last year with the show's creator and former executive producer, Dan Harmon.

The fourth-season premiere of "Community" is Feb. 7, when it makes a delayed return to the 8 p.m. EST Thursday time slot. The show's ensemble cast includes Joel McHale and Donald Glover.

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