DealBook: S.E.C. Weighs Suing Aletheia Manager

Federal regulators are preparing a civil fraud case against a prominent Los Angeles money manager, a government lawyer said at a court hearing on Wednesday.

The manager, Peter J. Eichler Jr., chief executive of Aletheia Research and Management, has received a so-called Wells notice from the Securities and Exchange Commission, an indication that the agency is considering an enforcement action.

Gary Leung, an S.E.C. staff lawyer, disclosed the potential lawsuit during a hearing in United States Bankruptcy Court in Los Angeles. Aletheia filed for bankruptcy protection on Nov. 11, and owes as much as $50 million.

A bankruptcy lawyer for Aletheia, Brian Davidoff, said that his client disputed the S.E.C.’s possible claims. A Wells notice typically gives the recipient a chance to dissuade the S.E.C. from proceeding with its case.

Regulators are said to be looking into accusations of improper trading, including whether client accounts were manipulated through the late allocation of trades. It is also examining whether money-losing trades were shifted from client accounts into Aletheia’s accounts, said a person briefed on the case who spoke on condition of anonymity.

The Justice Department has also taken an interest in Aletheia’s bankruptcy case. On Monday, prosecutors in the tax division of the United States attorney’s office in Los Angeles made a request with the bankruptcy court that it be notified of all pleadings filed in the case.

The S.E.C.’s warning is the latest setback for Mr. Eichler, who until recently was a highly regarded money manager. At its peak, Aletheia managed nearly $10 billion in assets and had a superior long-term investment track record that handily outperformed the Standard & Poor’s 500-stock index. The firm’s flagship growth strategy attracted business from Goldman Sachs and Morgan Stanley, which both invested their clients’ money in Aletheia funds. Both banks have terminated their relationships with Aletheia.

Aletheia also drew attention for its involvement in several prominent shareholder fights, including when it teamed up with the billionaire investor Ronald Burkle to wage a proxy battle with the bookseller Barnes & Noble.

Named after the Greek word for “truth and disclosure,” Aletheia was started in 1997 by Mr. Eichler, a former executive at Bear Stearns. He operated the firm out of wood-paneled headquarters at 100 Wilshire Boulevard in Santa Monica, a prestigious office building with commanding views of the Pacific Ocean.

But Mr. Eichler and Aletheia have been under a cloud since 2010, when a senior executive at the firm, Roger B. Peikin, filed an explosive wrongful-termination lawsuit. He depicted Mr. Eichler as a tyrannical boss who ruled Aletheia “with an iron fist” and operated the firm as his “personal fiefdom.” The complaint also accused Mr. Eichler of misconduct related to “general disregard for regulatory controls, wanton expenditure of corporate assets for Eichler’s personal benefit, and overall neglect of the business side of Aletheia’s operations.”

Aletheia has had mounting legal problems in recent years. It already had a dispute with the S.E.C. when, in 2011, it paid the agency $400,000 to settle civil charges related to deficient record-keeping.

The firm is also engaged in a legal fight with Proctor Investment Managers, a private equity firm based in New York, over the terms of a deal in which Proctor took a 10 percent stake in Aletheia.

Despite its legal woes and tepid performance across its funds, Aletheia still managed about $1.4 billion as of Sept. 30, according to securities filings.

A version of this article appeared in print on 11/22/2012, on page B5 of the NewYork edition with the headline: S.E.C. Weighs Suing Aletheia Manager.

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Israel and Hamas Reach Cease-Fire

CAIRO — Israel and Hamas agreed to a cease-fire on Wednesday after eight days of lethal fighting over the Gaza Strip, the United States and Egypt said after intensive negotiations in Cairo.

The cease-fire, which is to take effect at 9 p.m. local time (2 p.m. E.S.T.), was formally announced by Secretary of State Hillary Rodham Clinton and Foreign Minister Mohamed Amr of Egypt at a news conference here. It appeared to avert an escalating battle between Palestinians and Israelis that had threatened to turn into wider war.

“This is a critical moment for the region,” Mrs. Clinton, who rushed to the Middle East late Tuesday in an intensified effort to halt the hostilities, told reporters in Cairo. She thanked Egypt’s president, Mohamed Morsi, who played a pivotal role in the negotiations, for “assuming the leadership that has long made this country a cornerstone of regional stability and peace.”

The negotiators reached an agreement after days of nearly nonstop Israeli aerial assaults on Gaza, the Mediterranean enclave run by Hamas, the militant Islamist group, which had fired hundreds of rockets into Israel from an arsenal it has been amassing in the aftermath of the three-week Israeli invasion four years ago.

The agreement came despite fears that a bus bombing in Tel Aviv earlier in the day, which Hamas and other Palestinian militant groups applauded, would scuttle the negotiations. There were also fears that Israeli strikes overnight into Gaza had further dimmed the prospects for success by Mrs. Clinton and Mr. Morsi.

Egyptian and American officials did not immediately divulge details of the agreement, and it was unclear how it would be enforced.

An agreement had been on the verge of completion Tuesday, but was delayed on a number of issues, including Hamas’s demands for unfettered access to Gaza via the Rafah crossing into Egypt and other steps that would ease Israel’s economic and border control over other aspects of life for the more than one million Palestinian residents of Gaza, which Israel vacated in 2005 after 38 years of occupation.

The Hamas Health Ministry in Gaza said the Palestinian death toll after a week of fighting stood at 140 at noon. At least a third of those killed are believed to have been militants. On the Israeli side, five Israelis have been killed, including one soldier.

Around noon on Wednesday in the Gaza Strip, according to the Hamas government media office, a bomb hit the house of Issam Da’alis, an adviser to Ismail Haniya, the Hamas prime minister. The house had been evacuated. Earlier, a predawn airstrike near a mosque in the Jabaliya refugee camp killed a 30-year-old militant, a spokesman said, and F-16 bombs destroyed two houses in the central Gaza Strip.

There were 23 punishing strikes against the southern tunnels that are used to bring weapons as well as construction material, cars and other commercial goods into Gaza from the Sinai Peninsula.

Within Gaza City, Abu Khadra, the largest government office complex, was obliterated overnight. Businesses were also damaged, including two banks and a tourism office, and electricity cables fell on the ground and were covered in dust.

Separately, a bomb dropped from an F-16 created a 20-foot-wide crater in an open area in a stretch of hotels occupied by foreign journalists. Several of the hotels had windows blown out by the strike around 2 a.m., but no one was reported injured. By morning, the hole in the ground had filled with sludgy water, apparently from a burst pipe, appearing almost like a forgotten swimming hole with walls made of sand and cracked cinder block.

Surveying damage near a government complex, Raji Sourani of the Palestinian Center for Human Rights said Gaza civilians were “in the eye of the storm,” and accused Israel of “inflicting pain and terror” on them. Israeli officials accuse Hamas of locating military sites in or close to civilian areas.

Overnight, as the conflict entered its eighth day, the Israeli military said in Twitter posts that “more than 100 terror sites were targeted, of which approximately 50 were underground rocket launchers.” The targets included the Ministry of Internal Security in Gaza, described as “one of Hamas’s main command and control centers.”

While there was no immediate or formal claim of responsibility for the bus bombing in Tel Aviv, a message on a Twitter account in the name of Al Qassam Brigades, the armed wing of the Hamas authorities in the Gaza Strip, declared: “We told you IDF that our blessed hands will reach your leaders and soldiers wherever they are, ‘You opened the Gates of hell on Yourselves.’ ” The letters I.D.F. refer to the Israel Defense Forces.

On several occasions since the latest conflagration seized Gaza last week, militants have aimed rockets at Tel Aviv, but they have either fallen short, landed in the sea or been intercepted. Hundreds of rockets fired by militants in Gaza have struck other targets.

But the bombing seemed to be the first time in the fighting that violence had spread directly onto the streets of Tel Aviv.

On Tuesday — the deadliest day of fighting in the conflict — Mrs. Clinton arrived hurriedly in Jerusalem and met with Prime Minister Benjamin Netanyahu of Israel to push for a truce.

Her visit to Cairo on Wednesday to consult with Egyptian officials in contact with Hamas placed her and the Obama administration at the center of a fraught process with multiple parties, interests and demands.

Before leaving for Cairo, Mrs. Clinton visited the West Bank to meet Mahmoud Abbas, the head of the Palestinian Authority, which is estranged from the Hamas rulers of the Gaza Strip and has increasingly strained ties with Israel over a contentious effort to upgrade the Palestinian status at the United Nations to that of a nonmember state. Mr. Abbas’s faction is favored by the United States, but it is not directly involved in either the fighting in Gaza or the effort in Cairo to end it. Like Israel and much of the West, the United States regards Hamas as a terrorist organization.

The Israelis, who had amassed tens of thousands of troops on the Gaza border, had threatened to invade for a second time in four years to end the rocket fire.

David D. Kirkpatrick reported from Cairo, Ethan Bronner from Jerusalem and Rick Gladstone from New York. Reporting was contributed by Jodi Rudoren and Fares Akram from Gaza, Isabel Kershner from Jerusalem, Alan Cowell from London, Andrea Bruce from Rafah and Christine Hauser from New York.

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Boxer 'Macho' Camacho critical in Puerto Rico

SAN JUAN, Puerto Rico (AP) — Hector "Macho" Camacho was clinging to life Wednesday after being shot in the face while in a car, with doctors and his family expected to decide whether to remove the former boxing champion from life support.

Doctors had said Camacho was in critical, but stable condition and expected to survive after he was shot Tuesday night in his hometown of Bayamon. But his condition worsened overnight and his heart stopped at one point, said Dr. Ernesto Torres, director of the Centro Medico trauma center in San Juan.

"He's battling minute to minute. This is the most important fight of his life," Torres told The Associated Press outside the hospital in the Puerto Rican capital.

Torres said doctors were trying to determine the boxer's level of brain activity.

The specialists will then consult with other doctors and Camacho's mother, who flew in Wednesday from New York, to discuss whether he should be removed from life support, said Ismael Leandry, a longtime friend and former manager who was also at the hospital.

"We just have to wait to see if 'Macho' gets better. It's a hard battle," Leandry told AP.

Torres said Camacho's mother, Maria, spent about 20 minutes with her son, one of the most dynamic boxing personalities of his era, and was expected to return for a second visit on Wednesday night.

"His mother came and she is devastated," he said. "She knows the prognosis is not at all favorable."

A godson, Widniel Adorno, said the family has discussed the possibility of organ donation but no final decision has been made.

The 50-year-old Camacho was outside a bar in a parked Ford Mustang with a friend when he was shot in the face. The friend, identified as 49-year-old Adrian Mojica Moreno, was killed. Police said two assailants fled in an SUV but no arrests have been made and no motive has been disclosed.

Camacho was rushed to Centro Medico, where doctors initially said he was fortunate in that the bullet passed through his head and lodged in his shoulder. Torres did warn, however, that the boxer, who was trailed by drug and alcohol problems during a career that included some high-profile bouts, could be paralyzed from the shooting.

Steve Tannenbaum, who has also represented Camacho in the past, said he was told by friends at the hospital that the boxer would make it.

"This guy is a cat with nine lives. He's been through so much," he said. "If anybody can pull through it will be him."

Friends and family members waited anxiously at the hospital, fondly recalling Camacho's high-energy personality and his powerful skills in the ring.

"He was like a little brother who was always getting into trouble," said former featherweight champion Juan Laporte, a fellow Puerto Rican who grew up and trained with Camacho in New York.

Camacho has been considered one of the more controversial figures in boxing.

The fighter's last title bout came against then-welterweight champion Oscar De La Hoya in 1997, a loss by unanimous decision. He last fought in May 2010, losing to Saul Duran. Tannenbaum said they were looking at a possible bout in 2013.

"We were talking comeback even though he is 50," he said. "I felt he was capable of it."

Camacho was born in Bayamon, one of the cities that make up the San Juan metropolitan area

He left Puerto Rico as a child and grew up mostly in New York's Harlem neighborhood, one of the reasons he later earned the nickname "the Harlem Heckler."

He went on to win super lightweight, lightweight and junior welterweight world titles in the 1980s.

Camacho has fought other high-profile bouts in his career against Felix Trinidad, Julio Cesar Chavez and Sugar Ray Leonard. Camacho knocked out Leonard in 1997, ending what was that former champ's final comeback attempt.

Camacho has a career record of 79-6-3.

In recent years, he has divided his time between Puerto Rico and Florida, appearing regularly on Spanish-language television.

Drug, alcohol and other problems have trailed Camacho since the prime of his boxing career. He was sentenced in 2007 to seven years in prison for the burglary of a computer store in Mississippi. While arresting him on the burglary charge in January 2005, police also found the drug ecstasy.

A judge eventually suspended all but one year of the sentence and gave Camacho probation. He wound up serving two weeks in jail, though, after violating that probation.

Twice his wife filed domestic abuse complaints against him, and she filed for divorce several years ago.

____

Associated Press writer Ben Fox contributed to this report.

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Ask an Expert: Ask and Expert About Alzheimer’s, Part 3

(Some questions published here have been edited, and not all questions can be answered.)

The doctor’s answers are meant for educational purposes and are not meant to be a substitute for advice from your own doctor. Readers should contact their physician before making health care decisions.

Q. What practical steps can a baby boomer take to stave off dementia of any type? — Canoe9, Hawaii

Q. My dad’s family has a history of Alzheimer’s disease: my grandfather and many of his brothers have either passed away from the disease, or are currently suffering from it. The disease can be traced back for many generations. My father has not yet started to show symptoms. Are there any medications he can take as a preventative measure? What are the best diet and lifestyle choices a person can make who has an increased risk of developing the disease? — VB, Canada

Q. Both of my inlaws have Alzheimer’s. What steps can my husband and his brothers take now to delay/prevent the disease? And should he be monitored at an Alzheimer’s center? — lbs, New Jersey

Q. My mother, two older brothers and two older sisters all had progressive mental dementia (I believe Alzheimer’s ) before age of 65. I am 64 and had extensive mental exam that found no symptoms. For prevention I am doing it as follows. 1. Have become a Vegan with very little use of vegetable oils after reading China Study by Campbell and Starch Solution by McDougall. 2. I use lots of turmeric, ginger, cinnamon in my food. 3. I have run 20 to 30 miles a week for the last 10 years. 4. I retired to reduce work related stress. Is there any other preventive measures you recommend? — Jaque, Champaign, Ill.

Q. My mother had a form or dementia, not sure if it was Alzheimer’s, and she lived to 96. And what can I do to improve my chances? I work out and am not overweight and am in good health otherwise. — Mitchellmcg, New York

A. There are dozens of causes of dementia and steps for prevention are different for each one. We have no proven preventive strategies for Alzheimer’s. The decision to monitor people at risk is made on a case by case basis, but I don’t usually recommend any monitoring until someone is about five years within the age their relative developed it; or they note changes in their memory. My top strategies to keep your brain healthy are listed below.

1. Vascular risks: Minimize your risk for strokes, heart disease and diabetes (keep your body weight, blood pressure, cholesterol and sugar in normal range). Studies find strong links between vascular risks and Alzheimer’s.

2. Exercise regularly: Regular aerobic activities, such as walking, may reduce risk for dementia by keeping the brain’s blood vessels healthy, boosting nerve growth chemicals and slowing age-related brain shrinkage.

3. Stimulate your mind: Socialize actively, make new friends, try new activities, travel to new places and be passionate about learning new things. Adult brains can grow new brain cell connections and developing a greater cognitive reserve might help the buffer against dementia pathology.

4. Heart healthy diet: follow a heart healthy diet such as a Mediterranean diet but heed the old Okinawan saying Hari Hachi Bu – eat only till you are 80 percent full; drink in moderation (but not till you cannot remember what happened the prior night!)

5. Minimize your risk for head injury by wearing helmets. (The Hovding is a new invisible helmet that promises to keeps your hair looking pretty and your head safe!)

6. Take part in clinical trials – pros are that trials may offer regular check-ups and you are helping science; cons are that there are safety risks. Our book, The Alzheimer’s Action Plan gives a step-by-step guide to evaluate which clinical trials are best for you. You might enjoy reading the new book, “Super Brain.” It’s coauthored by the dementia scientist Rudolf Tanzi and the mind-body guru, Deepak Chopra.

Q. I can´t find a Spanish version of “The Alzheimer’s Action Plan.” Will we have it soon? — Marisabel Neuman, Orlando, Fla.

A. Not yet, but we are open to it if you know an interested publisher! But your question does highlight the fact that many Spanish only speakers in the United States and elsewhere are often left out of the mainstream of information on Alzheimer’s. Hispanics in the United States may be at a slightly greater risk for Alzheimer’s due to higher rates of heart disease. Gracias por su interes!

Q. Since my mother developed Alzheimer’s in her mid-80’s, presumably I am at greater risk than the general population, should I live to a similar age. What is your best guess about the likelihood of preventative medications or treatments being developed in the next 25 years? — Beth, Singapore

A. The track record of scientists at predicting a “cure” is not very good (about the same as that of stock analysts predicting the market). The last dozen or so experimental medicines for Alzheimer’s (all touted as the next big thing) have not only failed but results have often been the opposite of what was predicted.

That said, in the next 5-10 years, we will have the results from over 25 trials testing a broad range of strategies such as drugs targeting plaques, drugs targeting tangles, drugs boosting brain memory chemicals, aerobic exercise, different types of diets and medical foods, gene therapy, as well as novel devices to stimulate the brain’s memory centers. (You can check clinicaltrials.org or adcs.org for more information). So the odds are quite good that we will have one or more new treatments by 2025. But even if a cure were in a test tube today, it would take ten years to get to the market. That’s why it’s critical that individuals, such as yourself, sign up for clinical trials.

You may be surprised to learn that one type of “cure” is already available. About 10 years ago, a woman with familial early onset Alzheimer’s successfully conceived a healthy baby free of the harmful APP gene mutation through a technique called preimplantation genetic diagnosis (PGD) at a fertility clinic run by the doctor, Yuri Verlinski. That baby, who would now be 10 years old, has hopefully been cured of familial Alzheimer’s and will in turn be able to have risk free children.

Q. My father, his mother, his mother’s sister, my maternal grandmother and her sister and my maternal aunt all had or have Alzheimer’s - symptomatic onset at 70 and in the early 80’s. I have just turned 60 and think I’d be a great research subject in terms of lifestyle. Can you suggest any research projects that might use me? I understand that some very important studies are being run through Duke. — Kristin Pop’s daughter, Ithaca.

Q. Kristin’s background, age, concerns, and interest in research studies mirror mine - which I have posted. Please inform us of potential studies. I am willing to travel, even to Duke, which she mentioned in her post. —Mary Christian Madden, East Greenwich, RI

A. Thanks for the offer! Most research studies require people to come for multiple visits over several months/years which would be difficult for people living far away. A university affiliated medical center closer to your home might be more ideal. Clinicaltrials.gov has a listing of all ongoing prevention studies. Many such studies are also advertised in pages of local newspapers. The Alzheimer’s Association chapter in your home town may be able to guide you to find a suitable research study in your town. Don’t sign up for a trial just because you have a spare half day. Make sure you thoroughly research the pros and cons. Fewer than 1 percent of drug trials are positive, but 100 percent of all drug trials carry risks. So the odds of you personally benefiting are the same as in a lottery.

Q. Her whole life my mother drank four cups of tea every day, read two to three books a week, ate mostly vegetables, didn’t smoke, drank wine moderately, and stayed slim. She started showing signs of Alzheimers in her mid 50’s and has been steadly declining for 15 years now. Although a bad lifestyle can cause dementia in many people, it is more complicated than that. — Joseph, Fla.

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Blue Laws Curb Consumerism Where Pilgrims Gave Thanks

Charlie Mahoney for The New York Times

The annual Thanksgiving celebration in Plymouth, Mass., is held the weekend before the holiday, so as not to interfere.

PLYMOUTH, Mass. — Here in the birthplace of Thanksgiving, where the Pilgrims first gave thanks in 1621 for their harvest and their survival, some residents are giving thanks this year for something else: the Colonial-era blue laws that prevent retailers from opening their doors on the fourth Thursday of November.

Charlie Mahoney for The New York Times

Participants in Saturday's town parade.

While shoppers in the rest of the country will skip out on Thanksgiving to go to Walmart or Kmart or other big-box stores, William Wrestling Brewster, whose ancestors arrived on the Mayflower and participated in that first Thanksgiving, will limit his activities to enjoying a traditional meal here with his extended family at his parents’ house.

“Thanksgiving is supposed to be about giving thanks for all you have,” said Mr. Brewster, 47, who runs a computer repair business. “I cringe to think what society is doing to itself,” he said of the mercantile mania that threatens one of the least commercial holidays.

Some of the nation’s biggest retailers — Sears, Target and Toys “R” Us among them — announced this month that they would be moving up their predawn Black Friday door-buster sales to Thanksgiving Day or moving up their existing Thanksgiving sales even earlier on Thursday. Walmart, which has already been open on Thanksgiving for many years, is advancing its bargain specials to 8 p.m. Thursday from 10 p.m.

But in Maine, Massachusetts and Rhode Island, the stores will sit dark until the wee hours of Friday. Even Walmart will not open in Maine until just after midnight Friday or in Massachusetts or Rhode Island until 1 a.m.

New England’s blue laws were put down by early settlers to enforce proper behavior on Sundays. (The origin of the term is unclear. Some have said the laws were printed on blue paper, while others have said the word “blue” was meant to disparage those like the “blue noses” who imposed rigid moral codes on others.)

Over decades, many of those laws — which banned commerce, entertainment and the sale of alcohol, among other things — were tossed aside or ignored, or exemptions were granted. In some cases, the statutes were extended to holidays and barred retailers specifically from operating on Thanksgiving or Christmas.

Maine granted an exception to L. L. Bean, whose store in Freeport is open around the clock every day, including Christmas. When the blue laws, which had faded, were revived in the 1950s, the store in Freeport was already operating 24/7, said Carolyn Beem, a spokeswoman. She said that the store, which originally catered to hunters and fishermen who shopped at odd hours, was grandfathered in and allowed to stay open on the holidays.

Nationwide, a protest is developing against Thanksgiving Day sales. Workers at some stores have threatened to strike, saying the holiday openings were disrupting their family time. Online petitions have drawn hundreds of thousands of signatures protesting the move. The stores say that many of their workers have volunteered to work on the holiday, when they will get extra pay, and that consumers wanted to shop early. It is not yet clear what effect the protests might have.

At the same time, this corner of New England is serving as something of a bulwark against the forces of commercialism.

Even the Retailers Association of Massachusetts is treading gently on the notion of Thanksgiving sales.

“There hasn’t been any outcry from our members over the years pushing this,” said Bill Rennie, vice president of the association.

But, as Thanksgiving shopping becomes more common, he said, “it may be time to have a discussion about it.”

Blue laws seem anachronistic when people can shop anytime online, he said.

There is also the case of simple economics. These states are already at risk of losing sales to stores in New Hampshire, which has no sales tax. Now, Mr. Rennie pointed out, they could lose even more in the holiday bargain rush when stores in New Hampshire are open and stores here are closed.

Still, Barry Finegold, a Massachusetts state senator whose district abuts New Hampshire, said that so far, none of the retailers in his district had asked for a change in the law.

This article has been revised to reflect the following correction:

Correction: November 20, 2012

An earlier version of this article misstated William Wrestling Brewster’s occupation. He runs a computer repair business, not a computer store.

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Rutgers to announce its joining Big Ten

NEW YORK (AP) — Rutgers is leaving the Big East for the Big Ten and cashing in on the school's investment in a football program that only 10 years ago seemed incapable of competing at the highest level.

The school will make its decision official Tuesday at a news conference on its campus in Piscataway, N.J., with Big Ten Commissioner Jim Delany joined by Rutgers University President Robert Barchi and athletic director Tim Perenetti.

Rutgers will leave the Big East, where it has been competing since 1991. The move follows Maryland's announcement Monday that it was departing the Atlantic Coast Conference to join the Big Ten in 2014. Rutgers will be the Big Ten's 14th member.

Rutgers also plans to join its new conference in 2014, though the Big East requires 27 months' notification for departing members. The Scarlet Knights will have to negotiate a deal with the Big East to leave early.

Whenever Rutgers enters the Big Ten, it will be the culmination of one of the most remarkable turnarounds in college sports.

In 2002, the Scarlet Knights football team went 1-11 under second-year coach Greg Schiano, who then seemed like the latest coach incapable of reviving a program that had been the laughingstock of major college football for more than a decade.

However, the team made steady improvement on the field as the university made the huge financial commitments necessary to support a major college football program.

Facilities were upgraded, the on-campus stadium was expanded and as Schiano started to win, his salary began to rise into the millions. Not everyone on campus embraced the idea of turning Rutgers into a big-time football school, and it did come at a cost.

The expanded and renovated stadium cost of $102 million. The school had hoped to raise the money through private donors, but fell short. Rutgers scaled back plans for the expansion and issued bonds and borrowed money to complete the project.

In 2006, the school had to cut six varsity sports, including men's tennis and crew. As the football program has become a consistent winner — Rutgers has gone to a bowl six of the last seven years — the athletic department has received tens of millions in subsidies from the university.

Schiano left for the NFL last year, and Rutgers hired longtime assistant Kyle Flood, who has the Scarlet Knights poised to take make another big step in their development. No. 21 Rutgers (8-2) is in position to win its first Big East championship and go to a BCS game for the first time.

In the Big Ten, the amount of revenue Rutgers receives from the league's television and media deals should quadruple in the short-term and could be even more than that in years to come.

The Big Ten reportedly paid its members about $24 million dollars last year. The Big East's payout to football members last year was $6 million.

In exchange, the Big Ten gets a member in the largest media market in the country, and new presence along the East Coast, with Rutgers and Maryland as north and south bookends.

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Responding to Illnesses Manifesting Amid Recovery From Storm

Nicole Bengiveno/The New York Times

Dr. Aaron Gardener, center, attended to a patient at an ad hoc medical unit in Long Beach, N.Y. Many people have coughs, rashes and other ailments.

Day and night, victims of Hurricane Sandy have been streaming into ad hoc emergency rooms and relief centers, like the MASH-type medical unit on an athletic field in Long Beach, and the warming tent in the Rockaways the size of a small high school gym.

They complain of rashes, asthma and coughing. They need tetanus shots because — house-proud and armed with survivalist instincts — they have been ripping out waterlogged boards and getting poked by rusty nails. Those with back pain from sifting through debris receive muscle relaxants; those with chest pain from overexertion are hooked up to cardiac monitors.

“I’ve been coughing,” said Gabriel McAuley, 46, who has been working 16-hour days gutting homes and hauling debris in the Rockaways since the storm hit. “I’ve never felt a cough like that before. It’s deeper down.”

It is impossible to say how many people have been sickened by what Hurricane Sandy left behind: mold from damp drywall; spills from oil tanks; sewage from floodwater and unflushable toilets; tons upon tons of debris and dust. But interviews with hurricane victims, recovery workers, health officials and medical experts over the last week reveal that some of the illnesses that they feared would occur, based on the toxic substances unleashed by the storm and the experience of other disasters, notably Hurricane Katrina, have begun to manifest themselves.

Emergency rooms and poison control centers have reported cases of carbon monoxide exposure — and in New Jersey, several deaths have been attributed to it — from the misuse of generators to provide power and stoves to provide heat.

In Livingston, N.J., the Burn Center at St. Barnabas Medical Center had 16 burn cases over about six days, three times as many as usual, from people trying to dispel the cold and darkness with boiling water, gasoline, candles and lighter fluid.

Raw sewage spilled into homes in Baldwin and East Rockaway, in Nassau County, when a sewage plant shut down because of the surge and the system could not handle the backup. Sewage also spilled from a huge plant in Newark. “We tried to limit our presence in the house because the stink was horrible,” said Jennifer Ayres, 34, of Baldwin, who has been staying temporarily in West Hempstead. She said that she felt ill for several days, that her son had a scratchy throat, and that her mother, who lives in the house, had difficulty breathing, all problems she attributed to the two days they spent inside their house cleaning up last week. “I had stomach problems. I felt itchy beyond itchy on my face.”

Coughing — locally known as the Rockaway cough — is a common symptom that health officials said could come from mold, or from the haze of dust and sand kicked up by the storm and demolitions. The air in the Rockaways is so full of particles that the traffic police wear masks — though many recovery workers do not, worrying people who recall the fallout of another disaster.

“It’s just like 9/11,” said Kathy Smilardi, sitting inside the skeleton of her gutted home in Broad Channel, wrapped in a white puffy jacket, her breath visible in the afternoon cold. “Everyone runs in to clean up, and they’re not wearing masks. Are we going to wait 20 years to figure out that people are dying?”

Health officials and experts say the risks are real, but are cautioning against hysteria. Some coughing could be due to cold, damp weather. Lasting health effects from mold, dust and other environmental hazards generally require long-term, continuous exposure, they said. And the short-term effects can be mitigated by taking precautions like wearing masks, gloves and boots and removing mold-infested wallboard. “The reality is that cleaning up both muck and sewage and spills and removing walls and reconstruction and dealing with debris all do in fact pose concerns,” Daniel Kass, New York City’s deputy commissioner for environmental health, said Friday. “Are they vast or uncontrollable? No. But they depend on people doing work correctly and taking basic precautions.”

The Katrina cough was found to be temporary, said Roy J. Rando, a professor at Tulane’s School of Public Health and Tropical Medicine. Felicia Rabito, an epidemiologist at the school, said that healthy children exposed to mold after Hurricane Katrina showed no lasting respiratory symptoms when they moved back to new or renovated homes.

Immediately after Hurricane Katrina, lead levels in New Orleans’s soil dropped after the top layers of dirt, where lead from paint and gasoline can accumulate, were washed away. But in the two years afterward, soil testing found extremely high lead levels, Dr. Rabito said, which she theorized came from renovating old homes. “That’s a cautionary tale,” she said. Lead in soil can be tracked into homes and pose a health hazard to children playing inside or outside.

Though at least one outbreak of norovirus, a contagious gastrointestinal virus, occurred in a Brooklyn high school that was used as a shelter, New York and New Jersey health officials said they had not seen any significant spike in respiratory or gastrointestinal diseases related to the storm.

In Broad Channel, most homes on Noel Road, where Ms. Smilardi lives, have outdoor oil tanks that were overturned by the storm. The innards of many homes, built when asbestos was used, lie spilled among major and minor roads.

Ominous red spots covered both sides of Paul Nowinski’s burly torso. After the storm, Mr. Nowinski, a musician, waded into the basement of his childhood home on Beach 146th Street in the Rockaways to try to salvage records, books and instruments. He was up to his chest in water, which he thinks might have been contaminated with sewage. He said that he did not know the cause of the red marks; and that he had been too busy “schlepping” to go to the doctor.

Angela Macropoulos contributed reporting.

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DealBook: Hewlett-Packard Takes $8.8 Billion Charge

Hewlett-Packard said on Tuesday that it had taken an $8.8 billion accounting charge, after discovering “serious accounting improprieties” and “outright misrepresentations” at Autonomy, a British software maker that it bought for $10 billion last year.

It is a major setback for H.P., which has been struggling to turn around its operations and remake its business.

The charge essentially wiped out its profit. In the latest quarter, H.P. reported a net loss of $6.9 billion, compared with a $200 million profit in the period a year earlier. The company said the improprieties and misrepresentations took place just before the acquisition, and accounted for the majority of the charges in the quarter, more than $5 billion.

Shares in H.P. plummeted nearly 11 percent in early afternoon trading on Tuesday, to less than $12.

Hewlett-Packard bought Autonomy in the summer of 2011 in an attempt to bolster its presence in the enterprise software market and catch up with rivals like I.B.M. The takeover was the brainchild of Léo Apotheker, H.P.’s chief executive at the time, and was criticized within Silicon Valley as a hugely expensive blunder.

Mr. Apotheker resigned a month later. The management shake-up came about one year after Mark Hurd was forced to step down as the head of H.P. after questions were raised about his relationship with a female contract employee.

“I’m both stunned and disappointed to learn of Autonomy’s alleged accounting improprieties,” Mr. Apotheker said in a statement. “The developments are a shock to the many who believed in the company, myself included. ”

Since then, H.P. has tried to revive the company and to move past the controversies. Last year, Meg Whitman, a former head of eBay, took over as chief executive and began rethinking the product lineup and global marketing strategy.

But the efforts have been slow to take hold.

In the previous fiscal quarter, the company announced that it would take an $8 billion charge related to its 2008 acquisition of Electronic Data Systems, as well as added costs related to layoffs. Then Ms. Whitman told Wall Street analysts in October that revenue and profit would be significantly lower, adding that it would take several years to complete a turnaround.

“We have much more work to do,” Ms. Whitman said at the time.

Hewlett-Packard continues to face weakness in its core businesses. Revenue for the full fiscal year dropped 5 percent, to $120.4 billion, with the personal computer, printing, enterprise and service businesses all losing ground. Earnings dropped 23 percent, to $8 billion, over the same period.

“As we discussed during our securities analyst meeting last month, fiscal 2012 was the first year in a multiyear journey to turn H.P. around,” Ms. Whitman said in a statement. “We’re starting to see progress in key areas, such as new product releases and customer wins.”

The strategic troubles have weighed on the stock. Shares of H.P. have dropped to less than $12 from nearly $30 at their high this year.

The latest developments could present another setback for Ms. Whitman’s efforts.

When the company assessed Autonomy before the acquisitions, the financial results appeared to pass muster. Ms. Whitman said H.P.’s board at the time – which remains the same now, except for the addition of the activist investor Ralph V. Whitworth – relied on Deloitte’s auditing of Autonomy’s financial statements. As part of the due diligence process for the deal, H.P. also hired KPMG to audit Deloitte’s work.

Neither Deloitte nor KPMG caught the accounting discrepancies. Deloitte said in a statement that it could not comment on the matter, citing client confidentiality. “We will cooperate with the relevant authorities with any investigations into these allegations,” the accounting firm said.

Hewlett-Packard said it first began looking into potential accounting problems in the spring, after a senior Autonomy executive came forward. H.P. then hired a third-party forensic accounting firm, PricewaterhouseCoopers, to conduct an investigation covering Autonomy sales between the third quarter 2009 and the second quarter 2011, just before the acquisition.

The company said it discovered several accounting irregularities, which disguised Autonomy’s actual costs and the nature of the its products. Autonomy makes software that finds patterns, data that is used by companies and governments.

H.P. said that Autonomy, in some instances, sold hardware like servers, which has higher associated costs. But the company booked these as software sales. It had the effect of underplaying the company’s expenses and inflating the margins.

“They used low-end hardware sales, but put out that it was a pure software company,” said John Schultz, the general counsel of H.P. Computer hardware typically has a much smaller profit margin than software. “They put this into their growth calculation.”

An H.P. official, who spoke on background because of ongoing inquiries by regulators, said the hardware was sold at a 10 percent loss. The loss was disguised as a marketing expense, and the amount registered as a marketing expense appeared to increase over time, the official said.

H.P. also contends that Autonomy relied on value-added resellers, middlemen who sold software on behalf of the company. Those middlemen reported sales to customers that didn’t actually exist, according to H.P.

H.P. also claims that that Autonomy was taking licensing revenue upfront, before receiving the money. That improper assignment of sales inflated the company’s gross profit margins.pfront, before receiving the money. It had the effect, the company said, of significantly bolstering Autonomy’s gross margin.

Hewlett Packard turned over its findings to Securities and Exchange Commission in the United States and the Serious Fraud Office in Britain with the last week. In a conference call with analysts, Ms. Whitman said the company might consider legal actions against several parties.

The former management team of Autonomy, which includes the company’s founder Mike Lynch, rejected H.P. claims about the accounting issues.

“H.P. has made a series of allegations against some unspecified former members of Autonomy Corporation PLC’s senior management team. The former management team of Autonomy was shocked to see this statement today, and flatly rejects these allegations, which are false,” the group said in a statement. “It took 10 years to build Autonomy’s industry-leading technology and it is sad to see how it has been mismanaged since its acquisition by H.P.”

While Mr. Schultz would not detail H.P.’s future legal strategy, he said “we intend to be aggressive in recovering value for our shareholders.” In addition to Mr. Lynch, the company indicated this could include other individuals, including perhaps former senior executives of H.P. who missed the bad accounting. “We’re not limiting it to Autonomy,” Mr. Shulz said.

H.P. also underscored the importance of Autonomy to the broader strategy, emphasized the quality of the products. “This is a very healthy company with good products that exist,” said Mr. Shultz. “At its core, these are very good products.”

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Palestinian Death Toll Rises as Israel Presses Onslaught

GAZA CITY — The top leader of Hamas dared Israel on Monday to launch a ground invasion of Gaza and dismissed diplomatic efforts to broker a cease-fire in the six-day-old conflict, as the Israeli military conducted a new wave of deadly airstrikes on this besieged Palestinian enclave including a second hit on a 15-story building that houses media outlets. A volley of Gaza rockets fired into southern Israel included one that hit a vacant school.

Speaking at a news conference in Cairo, where the diplomatic efforts were under way, the Hamas leader, Khaled Meshal, suggested that the Israeli infantry mobilization on the border with Gaza was a bluff on the part of Prime Minister Benjamin Netanyahu of Israel.

“If you wanted to launch it, you would have done it,” Mr. Meshal told reporters. He accused Israel of using the invasion threat as an attempt to “ dictate its own terms and force us into silence.”

Rejecting Israel’s contention that Hamas had precipitated the conflict, Mr. Meshal said the burden was on the Israelis. “The demand of the people of Gaza is meeting their legimitate demands — for Israeli to be restrained from its aggression, assassinations and invasions and for the siege over Gaza to be ended,” he said.

The Hamas Health Ministry said Monday evening that a total of 100 people had been killed since last Wednesday morning, when Israeli airstrikes began following months of Palestinian rocket fire into Israel.

While it was difficult to tell how many of the dead were militants, since Hamas’s own fighting brigade and the other factional groups are secretive, the ministry said they included 24 children, 10 women and 12 men over 50 years of age, who were presumably not involved in combat. Islamic Jihad announced on its Web site that five of its fighters had died, and at least a 15 of the dead were well-known members of Hamas’s Al Qassam Brigades, which leaves  34 men whose status is unknown. Hamas health officials said 850 had been wounded, 260 of them children, 140 of them women and 55 men old than 50.

Three people have been killed so far in Israel, all civilians, in a rocket strike that hit an apartment house in the southern Israeli town of Kiryat Malachi last Thursday morning. The Israelis have said at least 79 Israelis have been wounded and that Gaza rockets have reached as far north as Tel Aviv.

The latest Gaza casualties — 19 people reported killed since midnight local time — included Palestinians killed in strikes by warplanes and a drone attack on two men on a motorcycle, the Health Ministry said. Another Israeli drone attack killed the driver of a taxi hired by journalists and displaying “Press” signs, although it was not clear which journalists hired it, Palestinian officials said.

On Sunday, Israeli forces attacked two buildings housing local broadcasters and production companies used by foreign outlets. Israeli officials denied targeting journalists, but on Monday Israeli forces again blasted the Al Sharouk block, a multiuse building where many local broadcasters as well as Britain’s Sky News and the Al Arabiya channel had offices.

That attack, which struck a computer shop on the third floor, sparked a blaze that sent plumes of dark smoke creeping up the sides of the building. Video footage showed clouds of smoke billowing.

An Israeli bomb pummeled a home deep into the ground here on Sunday, killing 11 people, including nine in three generations of a single family, in the deadliest single strike since the latest conflict began. Members of the family were buried Monday in a rite that turned into a gesture of defiance and became a rally supporting Gaza’s militant Hamas rulers.

A militant leader said Tel Aviv, in the Israeli heartland, would be hit “over and over” and warned Israelis that their leaders were misleading them and would “take them to hell.”

Israel says its onslaught is designed to stop Hamas from launching the rockets, but, after an apparent lull overnight, more missiles hurtled toward targets in Israel, some of them intercepted by Israel’s Iron Dome defense system. Of five rockets fired on Monday at the southern Israeli city of Ashkelon, four were intercepted but one smashed through the concrete roof at the entrance to an empty school. There were no reports of casualties. Other rockets rained on areas along the border with Gaza.

Fares Akram and Jodi Rudoren reported from Gaza City, and Alan Cowell from London. Reporting was contributed by Isabel Kershner from Ashkelon, Israel; Ethan Bronner, Myra Noveck and Irit Pazner Garshowitz from Jerusalem; Rina Castelnuovo from Ashdod, Israel; Peter Baker from Bangkok; and David D. Kirkpatrick from Cairo.

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