Assad's forces fire Scuds in Syria escalation: U.S. official

WASHINGTON/BRUSSELS (Reuters) - Forces loyal to Syrian President Bashar al-Assad have fired Scud missiles at rebels trying to overthrow Syria's government, a senior U.S. official said on Wednesday, a step seen as an escalation in Assad's struggle to retain power.

U.S. officials said they were unaware of any previous instances in which Scuds were used against the rebels since the start of the 20-month-old uprising, which has killed more than 40,000 people.

White House spokesman Jay Carney declined to confirm the reports, saying he was aware of them but could not discuss intelligence matters.

"If true, this would be the latest desperate act from a regime that has shown utter disregard for innocent life," he said. "The idea that the Syrian regime would launch missiles in its borders at its own people is stunning, desperate, a completely disproportionate military escalation."

A senior U.S. official, speaking on condition of anonymity, said Scuds had been used.

In Brussels, a NATO official, who also spoke on condition of anonymity, said a number of "Scud-type" short-range ballistic missiles had been launched inside Syria in recent days.

"Allied intelligence, surveillance and reconnaissance assets have detected the launch of a number of unguided, short-range ballistic missiles inside Syria this week," the official said.

"Trajectory and distance travelled indicate they were Scud-type missiles," the NATO official said.

Thomas Houlahan, a military analyst at the Center for Security and Science, said the weapons were probably North Korean-made Hwasong-6 missiles, an improved variant of the original Soviet Scuds.

"In terms of the short-range battlefield missiles, they produce a pretty good missile and because of North Korea's constant need for hard currency, they sell them pretty cheap. So they have moved a lot of missiles around and Syria has ended up with a lot of them," Houlahan said.

"MORE ACCURATE"

He said the Hwasong-6 was more accurate than the original Scud, could carry a warhead of about 1,800 pounds (820 kg) and had a range of about 450 miles.

But he said the use of the weapon raised questions as to why the Syrians were not using their air force instead, which was a better alternative.

"If I want to dump 1,800 pounds of explosives on somebody with fairly decent accuracy and I have an air force and they don't, why the hell am I not using a plane?" Houlahan said.

"If you see a country or an army that has much better options not using them, you start to ask yourself why," he added. "Is it the old problem where dictators can't always trust their air forces?"

NATO agreed last week to send Patriot anti-missile systems to alliance member Turkey to reinforce its air defenses and calm its fears of coming under missile attack, possibly with chemical weapons, from neighboring Syria.

The NATO official said the Syrian missiles had landed inside Syria and no missiles had hit Turkish territory. He said the Western alliance had no information about what casualties or damage the missiles had caused.

Asked if there was any evidence of Syrian use of chemical weapons, he said: "We have no information concerning the payload."

U.S. President Barack Obama warned Assad last week not to use chemical weapons against Syrian opposition forces, saying there would be unspecified consequences if he did so.

The United States, Germany and Netherlands have all agreed to send Patriot missiles to protect Turkey, but the missile batteries are not expected to arrive for several more weeks.

The New York Times, which initially reported Syria's use of the missiles, quoted one official as saying more than six had been fired at the rebels. Another official said the missiles had been launched from the Damascus area at targets in northern Syria, the Times said.

U.S. officials, speaking on condition of anonymity, told Reuters they would not dispute the Times report.

News of Syria's use of Scud missiles broke as Western and Arab nations sympathetic to the uprising against Assad gave full political recognition to the opposition at a meeting in Morroco.

(Reporting by David Alexander in Washington and Adrian Croft in Brussels; Editing by Michael Roddy and David Brunnstrom)

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China 'lacks leverage' over N. Korea: state media

BEIJING: Beijing lacks leverage over North Korea and will block moves for strong new sanctions for fear of weakening its position further, Chinese state media said Thursday following Pyongyang's rocket launch.

China is the North's sole major ally, considered the nation with the most influence over Pyongyang, and after Wednesday's rocket flight US officials urged it to intervene.

But in an editorial Thursday the state-run Global Times said: "China's ability to influence countries in the region is limited... The real problem is China's strength is not sufficient to influence its neighbour's situation."

"NK move shows China's lack of leverage" read its headline.

China voiced "regret" over the launch but state press said it could not support strong further measures against Pyongyang for fear of weakening its relationship.

A bellicose Western reaction risked driving North Korea into a corner with potentially devastating results, editorials said.

"That is why China should not take a cooperative stance with the US, Japan and South Korea in imposing sanctions on North Korea," the Global Times said.

"China will veto radical resolutions made by the three countries. At the same time North Korea should pay for its actions."

It acknowledged fears in the region should North Korea eventually be able to arm a ballistic missile with a nuclear weapon.

The reaction to the launch "is almost the same as that of North Korea's nuclear test", the paper said, and "a vicious circle" of escalation could lead to Japan abandoning its pacifist constitution and threaten peace in Northeast Asia.

The situation was "subtle, complex and dangerous", said the People's Daily, the official mouthpiece of the Communist Party, urging calm and a return to the six-party talks on North Korea hosted by China and including Russia, the United States, South Korea and Japan.

"The reaction by the Security Council should be prudent and measured," the paper added.

One columnist in Global Times, which often takes a nationalist stance, suggested that China should seize the opportunity to establish a regional security framework.

The country is embroiled in territorial disputes with Japan over islands in the East China Sea, and several littoral states over the South China Sea, which Beijing claims almost in its entirety.

"Now it's high time to establish a political and security mechanism," wrote Ding Gang. "China is a big power in the region.

"China itself will certainly be confined by the mechanism, but the credibility it acquires will be more important. "The mechanism will not only regulate North Korea, but also the Philippines and Vietnam."

- AFP/ck

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DA case: SC orders CBI to continue probe against Mulayam, Akhilesh

NEW DELHI: The Supreme Court has asked the CBI to continue with its probe into the disproportionate assets case against Mulayam Singh Yadav and Akhilesh Yadav.

The court also ordered investigations to continue against Mulayam's other son Prateek. However, the apex court dropped DA charges against Akhilesh's wife Dimple Yadav.

The Supreme Court had ordered the DA probe agianst Mulayam's family on March 1, 2007.

The court modified its 2007 order which had asked CBI to submit preliminary probe report to the Centre for further action.

The judges said it was an error to ask CBI to submit report to the Centre.

The court ordered CBI to proceed with the DA investigations against the Yadavs independently and take steps in accordance with the law.

The court had on February 17, 2011 reserved its verdict on Mulayam's plea for annulment of the order.

Mulayam in his plea had said he could not be made to suffer a CBI probe when he and his family members had regularly filed income tax returns. He had also said that the court had adopted a different stand -- "Supreme Court cannot be the ground for settling political battles" -- when it came to investigating identical charges against RJD leader Lalu Prasad.

On a petition filed by Vishwanath Chaturvedi, whom Mulayam accuses to be associated with rival Congress party, the court had on March 1, 2007 ordered the CBI to conduct a preliminary probe and surprisingly asked the agency to submit a probe report to the government for further action.

The probe was ordered against Mulayam, his sons Akhilesh and Prateek and his daughter-in-law Dimple. The Centre, after initially supporting the petitioner and taking a stand against Mulayam 's review petition, backed the SP leader's plea last year.

A bench of Justices Altamas Kabir and H L Dattu had reserved orders on the review petitions filed by Mulayam and his kin after hearing Chaturvedi's counsel and senior advocate K T S Tulsi, who criticized the Centre for its double standards and quoted the Centre's November 13, 2006 affidavit supporting the probe into the alleged illegal wealth of the Yadavs.

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DA investigating Texas' troubled $3B cancer agency

AUSTIN, Texas (AP) — Turmoil surrounding an unprecedented $3 billion cancer-fighting effort in Texas worsened Tuesday when its executive director offered his resignation and the state's chief public corruption prosecutor announced an investigation into the beleaguered agency.

No specific criminal allegations are driving the latest probe into the Cancer Prevention and Research Institute of Texas, said Gregg Cox, director of the Travis County district attorney's public integrity unit. But his influential office opened a case only weeks after the embattled agency disclosed that an $11 million grant to a private company bypassed review.

That award is the latest trouble in a tumultuous year for CPRIT, which controls the nation's second-largest pot of cancer research dollars. Amid the mounting problems, the agency announced Tuesday that Executive Director Bill Gimson had submitted his letter of resignation.

"Unfortunately, I have also been placed in a situation where I feel I can no longer be effective," Gimson wrote in a letter dated Monday.

Gimson said the troubles have resulted in "wasted efforts expended in low value activities" at the agency, instead of a focused fight against cancer. Gimson offered to stay on until January, and the agency's board must still approve his request to step down.

His departure would complete a remarkable house-cleaning at CPRIT in a span of just eight months. It began in May, when Dr. Alfred Gilman resigned as chief science officer in protest over a different grant that the Nobel laureate wanted approved by a panel of scientists. He warned it would be "the bomb that destroys CPRIT."

Gilman was followed by Chief Commercialization Officer Jerry Cobbs, whose resignation in November came after an internal audit showed Cobbs included an $11 million proposal in a funding slate without a required outside review of the project's merits. The lucrative grant was given to Dallas-based Peloton Therapeutics, a biomedical startup.

Gimson chalked up Peloton's award to an honest mistake and has said that, to his knowledge, no one associated with CPRIT stood to benefit financially from the company receiving the taxpayer funds. That hasn't satisfied some members of the agency's governing board, who called last week for more assurances that no one personally profited.

Cox said he has been following the agency's problems and his office received a number of concerned phone calls. His department in Austin is charged with prosecuting crimes related to government officials; his most famous cases include winning a conviction against former U.S. House Majority Leader Tom DeLay in 2010 on money laundering charges.

"We have to gather the facts and figure what, if any, crime occurred so that (the investigation) can be focused more," Cox said.

Gimson's resignation letter was dated the same day the Texas attorney general's office also announced its investigation of the agency. Cox said his department would work cooperatively with state investigators, but he made clear the probes would be separate.

Peloton's award marks the second time this year that a lucrative taxpayer-funded grant authorized by CPRIT instigated backlash and raised questions about oversight. The first involved the $20 million grant to M.D. Anderson Cancer Center in Houston that Gilman described as a thin proposal that should have first been scrutinized by an outside panel of scientific peer-reviewers, even though none was required under the agency's rules.

Dozens of the nation's top scientists agreed. They resigned en masse from the agency's peer-review panels along with Gilman. Some accused the agency of "hucksterism" and charting a politically-driven path that was putting commercial product-development above science.

The latest shake-up at CPRIT caught Gilman's successor off-guard. Dr. Margaret Kripke, who was introduced to reporters Tuesday, acknowledged that she wasn't even sure who she would be answering to now that Gimson was stepping down. She said that although she wasn't with the agency when her predecessor announced his resignation, she was aware of the concerns and allegations.

"I don't think people would resign frivolously, so there must be some substance to those concerns," Kripke said.

Kripke also acknowledged the challenge of restocking the peer-review panels after the agency's credibility was so publicly smeared by some of the country's top scientists. She said she took the job because she felt the agency's mission and potential was too important to lose.

Only the National Institutes of Health doles out more cancer research dollars than CPRIT, which has awarded more than $700 million so far.

Gov. Rick Perry told reporters in Houston on Tuesday that he wasn't previously aware of the resignation but said Gimson's decision to step down was his own.

Joining the mounting criticism of CPRIT is the woman credited with brainstorming the idea for the agency in the first place. Cathy Bonner, who served under former Texas Gov. Ann Richards, teamed with cancer survivor Lance Armstrong in selling Texas voters in 2007 on a constitutional amendment to create an unprecedented state-run effort to finance a war on disease.

Now Bonner says politics have sullied an agency that she said was built to fund research, not subsidize private companies.

"There appears to be a cover-up going on," Bonner said.

Peloton has declined comment about its award and has referred questions to CPRIT. The agency has said the company wasn't aware that its application was never scrutinized by an outside panel, as required under agency rules.

___

Follow Paul J. Weber on Twitter: www.twitter.com/pauljweber

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Gunman 'Tentatively' Identified in Oregon Shooting

A masked gunman who opened fire in the crowded Clackamas Town Center mall in suburban Portland, Ore., killing two individuals before killing himself, has been "tentatively" identified by police, though they have not yet released his name.

The shooter, wearing a white hockey mask, black clothing, and a bullet proof vest, tore through the mall around 3:30 p.m. Tuesday, entering through a Macy's store and proceeding to the food court and public areas spraying bullets, according to witness reports.

Police have not released the names of the deceased. Clackamas County Sheriff's Department Lt. James Rhodes said authorities are in the process of notifying victims' families.

The injured victim has been transported to a local hospital, where she is "fighting for her life," according to Clackamas County Sheriff Craig Roberts.

PHOTOS: Oregon Mall Shooting

Nadia Telguz, who said she was a friend of the injured victim, told ABC News affiliate KATU-TV in Portland that the woman was expected to recover.

"My friend's sister got shot," Teleguz told KATU. "She's on her way to (Oregon Health and Science University hospital). They're saying she got shot in her side and so it's not life-threatening, so she'll be OK."

Christopher Onstott/Pamplen Media Group/Portland Tribune

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Witnesses from the shooting rampage said that a young man who appeared to be a teenager ran through the upper level of Macy's to the mall food court, firing multiple shots, one right after the other, with what is believed to be a black, semi-automatic rifle.

More than 10,000 shoppers were at the mall during the day, police said. Roberts said that officers responded to the scene of the shooting within minutes, and four SWAT teams swept the 1.4 million-square-foot building searching for the shooter. He was eventually found dead, an apparent suicide.

"I can confirm the shooter is dead of an apparent self-inflicted gunshot wound," Rhodes said. "By all accounts there were no rounds fired by law enforcement today in the mall."

Roberts said more than 100 law enforcement officers responded to the shooting, and at least four local agencies were working on the investigation, including the FBI and Bureau of Alcohol, Tobacco and Firearms, which is working to trace the shooter's weapon.

READ: Guns in America: A Statistical Look

Roberts also said that shoppers, including two emergency room nurses and one physician who happened to be at the mall, provided medical assistance to victims who had been shot. Other shoppers helped escort individuals out of the mall and out of harm's way, he said.

"There were a huge amount of people running in different directions, and it was chaos for a lot of citizens, but true heroes were stepping up in this time of high stress," Roberts said. "E.R. nurses on the scene were providing medical care to those injured, a physician on the scene was helping provide care to the wounded."

Mall shopper Daniel Martinez told KATU that he had just sat down at a Jamba Juice inside the mall when he heard rapid gunfire. He turned and saw the masked gunman, dressed in all black, about 10 feet away from him.

"I just saw him (the gunman) and thought, 'I need to go somewhere,'" Martinez said. "It was so fast, and at that time, everyone was moving around."

Martinez said he ran to the nearest clothing store. As he ran, he motioned for another woman to follow; several others ran to the store as well, hiding in a fitting room. They stayed there for an hour and a half until SWAT teams told them it was safe to leave the mall.

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North Korea's new leader burnishes credentials with rocket

SEOUL/TOKYO (Reuters) - North Korea successfully launched a rocket on Wednesday, boosting the credentials of its new leader and stepping up the threat the isolated and impoverished state poses to its opponents.

The rocket, which North Korea says put a weather satellite into orbit, has been labeled by the United States, South Korea and Japan as a test of technology that could one day deliver a nuclear warhead capable of hitting targets as far as the continental United States.

"The satellite has entered the planned orbit," a North Korean television news-reader clad in traditional Korean garb triumphantly announced, after which the station played patriotic songs with the lyrics "Chosun (Korea) does what it says".

The rocket was launched just before 10 a.m. Korea time (9 p.m. ET on Tuesday), according to defense officials in South Korea and Japan, and easily surpassed a failed April launch that flew for less than two minutes.

The North American Aerospace Defense Command (NORAD) said that it "deployed an object that appeared to achieve orbit", the first time an independent body has verified North Korean claims.

North Korea followed what it said was a similar successful launch in 2009 with a nuclear test that prompted the United Nations Security Council to stiffen sanctions that it originally imposed in 2006 after the North's first nuclear test.

The state is banned from developing nuclear and missile-related technology under U.N. resolutions, although Kim Jong-un, the youthful head of state who took power a year ago, is believed to have continued the state's "military first" programs put into place by his deceased father Kim Jong-il.

Washington condemned Wednesday's launch as a "provocative action" and breach of U.N. rules, while Japan's U.N. envoy called for a Security Council meeting. However, diplomats say further tough sanctions are unlikely to be agreed at the body as China, the North's only major ally, will oppose them.

"The international community must work in a concerted fashion to send North Korea a clear message that its violations of United Nations Security Council resolutions have consequences," the White House said in a statement.

Japan's likely next prime minister, Shinzo Abe, who is leading in opinion polls ahead of an election on December 16 and who is known as a North Korea hawk, called on the United Nations to adopt a resolution "strongly criticizing" Pyongyang.

There was no immediate official reaction from the Chinese government, which is North Korea's only major ally.

China had expressed "deep concern" over the launch which was announced a day after a top politburo member, representing new Chinese leader Xi Xinping, met Kim Jong-un in Pyongyang.

STUMBLING BLOCK

On Wednesday, China's state news agency Xinhua said North Korea had the "right to conduct peaceful exploration of outer space" but also called on it to abide by U.N. resolutions.

"China has been the stumbling block to firmer U.N. action and we'll have to see if the new leadership is any different than its predecessors," Bruce Klingner, a Korea expert at the Heritage Foundation, a U.S. thinktank told a conference call.

A senior adviser to South Korea's president said last week it was unlikely there would be action from the U.N. and that Seoul would expect its allies to tighten sanctions unilaterally.

Kim Jong-un, believed to be 29 years old, took office after his father died on December 17 last year and experts believe that Wednesday's launch was intended to commemorate the first anniversary of the death.

The April launch was timed for the centennial of the birth of Kim Il Sung, the founder of North Korea and the grandfather of its current ruler.

Wednesday's success puts the North ahead of the South which has not managed to get a rocket off the ground.

"This is a considerable boost in establishing the rule of Kim Jong-un," said Cho Min, an expert at the Korea Institute of National Unification.

There have been few indications the secretive and impoverished state, where the United Nations estimates a third of the population is malnourished, has made any advances in opening up economically over the past year.

North Korea remains reliant on minerals exports to China and remittances from tens of thousands of its people working on labor projects overseas.

The 22 million population often needs handouts from defectors who have escaped to South Korea in order to afford basic medicines.

Given the puny size of its economy - per capita income is less than $2,000 a year - one of the few ways the North can attract world attention is by emphasizing its military threat.

Pyongyang wants the United States to resume aid and to recognize it diplomatically, although the April launch scuppered a planned food deal.

It is believed to be some years away from developing a functioning nuclear warhead although it may have enough plutonium for around half a dozen nuclear bombs, according to nuclear experts.

The North has also been enriching uranium which would give it a second path to nuclear weapons as it sits on vast natural uranium reserves.

"A successful launch puts North Korea closer to the capability to deploy a weaponized missile," said Denny Roy a senior fellow at the East-West Center in Hawaii.

"But this would still require fitting a weapon to the missile and ensuring a reasonable degree of accuracy. The North Koreans probably do not yet have a nuclear weapon small enough for a missile to carry."

Pyongyang says that its development is part of a civil nuclear program, but has also boasted of it being a "nuclear weapons power".

(Additional reporting by Jumin Park and Yoo Choonsik in SEOUL; David Alexander, Matt Spetalnick and Paul Eckert in WASHINGTON; Linda Sieg in TOKYO; Sui-Lee Wee in BEIJING; Rosmarie Francisco in MANILA; Writing by David Chance; Editing by Raju Gopalakrishnan)

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China raps N. Korea over rocket launch

BEIJING: China on Wednesday rapped North Korea over its long-range rocket launch, demanding North Korea comply with UN resolutions against using ballistic missiles, the official news agency Xinhua said.

"Pyongyang should... abide by relevant UN Security Council resolutions... which demands the DPRK not to conduct 'any launch using ballistic missile technology' and urges it to 'suspend all activities related to its ballistic missile programme'," Xinhua said in a commentary.

China, North Korea's sole major ally and its biggest trading partner and aid provider, is seen as one of the few nations with any influence over the regime in Pyongyang and had previously expressed concerns over the launch.

Over the past decade, Beijing has repeatedly called for calm as North Korea tested nuclear weapons and carried out ballistic missile tests, despite wide condemnation from the international community, including the United States.

Following Wednesday's launch, Xinhua again urged all sides to exercise restraint.

"All parties concerned should stay cool-headed and refrain from stoking the flames so as to prevent the situation from spiralling out of control," Xinhua said.

"In place of bellicose rhetoric and gestures, they need to take concrete actions to foster a conducive milieu for dialogue and return to the negotiating table as soon as possible."

Xinhua also called for the resumption of long-stalled six-party talks over the North's nuclear programme, which are chaired by China and take in both Koreas, the United States, Japan and Russia.

"For years, the situation on the peninsula seems to have entered a reinforcing loop of misunderstanding, mistrust and animosity. The only viable way begins with trust-building," the agency added.

However, it said that the Democratic People's Republic of Korea -- the North's official name -- had "the right to conduct peaceful exploration of the outer space".

North Korea insisted the mission was not a banned intercontinental missile test but was designed to place a scientific satellite in orbit, and said it had achieved all its objectives.

"In international relations, as in life, the best way to make an enemy of a country is to treat it like one," Xinhua said. "This rule of thumb is also true with making friends."

- AFP/ck

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Join BJP-led NDA and you can become PM: Shiv Sena leader to Sharad Pawar

PUNE: Senior Shiv Sena leader Manohar Joshi on Tuesday invited NCP president Sharad Pawar to join NDA, saying "he would be able to end quarrels within the BJP-led alliance and could also become Prime Minister".

Hailing the Maratha strongman's political skills, Joshi, who attended a function organised here on the eve of Pawar's birthday tomorrow, told reporters "Pawar should join NDA to end quarrels within the alliance and bring together all factions. If he joins NDA, he can also become the Prime Minister."

Asked whether other NDA constituents would accept such a proposal, the former Lok Sabha Speaker quipped "Pawar can get it done."

Earlier, the former Maharashtra chief minister, addressing the gathering, showered praise on Pawar and said the NCP leader has the capability to become Prime Minister.

To a question, Joshi maintained the temporary structure built at Mumbai's Shivaji Park, where the last rites of Sena chief Bal Thackeray were performed, was linked with "sentiments" of the party.

There would not be any compromise on the stand taken by the party on keeping the structure intact, he said.

When pointed out that Sena stand could precipitate a showdown with the Congress-NCP government in the state, Joshi said "we will persist with our stand in the matter".

On the talk about constructing Thackeray's memorial in the premises of Mumbai's Kohinoor Mill owned by him, the Sena leader said there was no place there for such a project.

"There are already three buildings standing there and there is no vacant space," he said.

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Surprise: New insurance fee in health overhaul law

WASHINGTON (AP) — Your medical plan is facing an unexpected expense, so you probably are, too. It's a new, $63-per-head fee to cushion the cost of covering people with pre-existing conditions under President Barack Obama's health care overhaul.

The charge, buried in a recent regulation, works out to tens of millions of dollars for the largest companies, employers say. Most of that is likely to be passed on to workers.

Employee benefits lawyer Chantel Sheaks calls it a "sleeper issue" with significant financial consequences, particularly for large employers.

"Especially at a time when we are facing economic uncertainty, (companies will) be hit with a multi-million dollar assessment without getting anything back for it," said Sheaks, a principal at Buck Consultants, a Xerox subsidiary.

Based on figures provided in the regulation, employer and individual health plans covering an estimated 190 million Americans could owe the per-person fee.

The Obama administration says it is a temporary assessment levied for three years starting in 2014, designed to raise $25 billion. It starts at $63 and then declines.

Most of the money will go into a fund administered by the Health and Human Services Department. It will be used to cushion health insurance companies from the initial hard-to-predict costs of covering uninsured people with medical problems. Under the law, insurers will be forbidden from turning away the sick as of Jan. 1, 2014.

The program "is intended to help millions of Americans purchase affordable health insurance, reduce unreimbursed usage of hospital and other medical facilities by the uninsured and thereby lower medical expenses and premiums for all," the Obama administration says in the regulation. An accompanying media fact sheet issued Nov. 30 referred to "contributions" without detailing the total cost and scope of the program.

Of the total pot, $5 billion will go directly to the U.S. Treasury, apparently to offset the cost of shoring up employer-sponsored coverage for early retirees.

The $25 billion fee is part of a bigger package of taxes and fees to finance Obama's expansion of coverage to the uninsured. It all comes to about $700 billion over 10 years, and includes higher Medicare taxes effective this Jan. 1 on individuals making more than $200,000 per year or couples making more than $250,000. People above those threshold amounts also face an additional 3.8 percent tax on their investment income.

But the insurance fee had been overlooked as employers focused on other costs in the law, including fines for medium and large firms that don't provide coverage.

"This kind of came out of the blue and was a surprisingly large amount," said Gretchen Young, senior vice president for health policy at the ERISA Industry Committee, a group that represents large employers on benefits issues.

Word started getting out in the spring, said Young, but hard cost estimates surfaced only recently with the new regulation. It set the per capita rate at $5.25 per month, which works out to $63 a year.

America's Health Insurance Plans, the major industry trade group for health insurers, says the fund is an important program that will help stabilize the market and mitigate cost increases for consumers as the changes in Obama's law take effect.

But employers already offering coverage to their workers don't see why they have to pony up for the stabilization fund, which mainly helps the individual insurance market. The redistribution puts the biggest companies on the hook for tens of millions of dollars.

"It just adds on to everything else that is expected to increase health care costs," said economist Paul Fronstin of the nonprofit Employee Benefit Research Institute.

The fee will be assessed on all "major medical" insurance plans, including those provided by employers and those purchased individually by consumers. Large employers will owe the fee directly. That's because major companies usually pay upfront for most of the health care costs of their employees. It may not be apparent to workers, but the insurance company they deal with is basically an agent administering the plan for their employer.

The fee will total $12 billion in 2014, $8 billion in 2015 and $5 billion in 2016. That means the per-head assessment would be smaller each year, around $40 in 2015 instead of $63.

It will phase out completely in 2017 — unless Congress, with lawmakers searching everywhere for revenue to reduce federal deficits — decides to extend it.

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Woman Gets Life for Lottery Winner's Murder

DeeDee Moore, the Tampa woman accused of swindling and then killing lottery winner Abraham Shakespeare, was found guilty today of first degree murder and other charges, after she declined to take the stand and the defense rested without calling a single witness.

In addition to the murder charge, Moore was also found guilty of possessing and discharging a firearm resulting in death. Prosecutors did not pursue the death penalty in the case, and Moore was sentenced to life in prison without parole.

"After trial and listening to all of this over two weeks, words that were said cool, calculated, manipulated. Abraham Shakespeare was your prey and victim. Money was the route of evil you brought to Abraham. You are sentenced to life in prison you shall not be elegible for parole," Judge Emmet Battles said.

Jurors deliberated for more than three hours Monday before delivering their verdict.

Prosecutors argued that Moore, 40, befriended Shakespeare before he vanished in April 2009 after he'd won $30 million in the Florida lottery. After Shakespeare had given away most of his money to people who simply asked for it, Moore agreed to manage the little he had left, but instead, prosecutors said, stole his winnings and killed him.

During a dramatic trial Moore has broken down in tears several times, and at one point said that she went into anaphylactic shock while in custody after taking the drug Bactrim when she was having problems with cuts on her ankles from being cuffed every day.

Early today the defense announced it would rest its case without calling any witnesses. Moore did not testify during her trial.

Jay Conner/The Tampa Tribune/AP Photo

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"There is no witness that can say she ever admitted to doing the killing or participating as a principle in helping anyone else do the killing," Moore's defense attorney Byron Hileman said today.

In the courtroom this morning, Moore's friend, former inmate Rose Condora was accused of threatening witnesses by Tampa Judge Emmett Battles, and was thrown out of the courtroom.

Authorities say Shakespeare, 47, was shot twice in the chest by a .38-caliber pistol sometime in April 2009. He wasn't reported missing until November 2009. His body was found under a slab of cement in a backyard in January 2010.

Polk County authorities claim Moore offered someone a $200,000 house in exchange for reporting a false sighting of Shakespeare. She also allegedly sent the victim's son $5,000 in cash for his birthday, and used the victim's cellphone to send text messages purportedly from him.

Shakespeare's mother, Elizabeth Walker, also testified that Moore tried to hide that her son was missing, and said that he had AIDS.

Sentorria Butler, Shakespeare's ex-girlfriend and the mother of his child, also testified. Butler told the court last week that Moore is a divisive and manipulative woman who told her Shakespeare "ran off with the lady from the bank."

During the trial, jurors also watched a Walmart surveillance video that the prosecution said links Moore to Shakespeare's killing. The footage shows Moore making a $104 cash purchase of gloves, duct tape, plastic sheeting and other items detectives later found close to where Shakespeare's body was buried.

Jurors hearing the case also heard a rambling two-page letter that witness Greg Smith, a police informant who was a former friend of Shakespeare and supposed friend of Moore, says Moore allegedly forged while at a Comfort Inn & Suites in Lakeland, Fla.

The letter was meant to appear to be from Shakespeare, prosecutors said. They say the letter was a ruse to convince Shakespeare's mother that he was still alive. Moore attempted to cover her tracks while it was written, according to prosecutors.

During the trial, jurors had to be accompanied by a security escort into the courtroom after they told the judge Smith and Shakespeare's family and friends were making them feel uncomfortable outside the courthouse. None of the jurors had to be excused by the judge.

The Associated Press contributed to this report.

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