Infosys to settle US visa fraud case for $34M

PLANO, Texas — Federal authorities say the $34 million settlement it reached with Indian technology outsourcing giant Infosys fixes "systemic issues" targeted in a major visa fraud and immigration abuse case.

Infosys said Wednesday that it agreed to settle the case following a two-year federal investigation.

Infosys had been under investigation for using short-term B-1 visas to bring thousands of workers to the United States instead of the more expensive, long-term H1-B visa. An Infosys consultant flagged what he said was an illegal practice and later filed a whistleblower lawsuit against the company, which was dismissed.

John M. Bales, the U.S. attorney for Texas' eastern district, said the settlement will require Infosys to change its visa practices.

Infosys said in a statement that it denies "any claims of systemic visa fraud."

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Minimum wage fight moves to Wash. city ballot

SEATAC, Wash. — The latest flashpoint in the nation's debate over the minimum wage will happen on the ballot in a small suburb south of Seattle.

Residents of SeaTac, Wash., will decide on November 5 whether to give employees at Seattle-Tacoma International Airport a $15-an-hour minimum wage and sick days.

The vote follows summertime fast food worker rallies across the country that attempted to bring attention to their struggle to earn a living.

There have been seven other cities that have approved similar regulations for their nearby airports, including San Francisco and Los Angeles. In Seattle, it has gained attention in the city's mayoral election, with both candidates approving a rate hike.

The SeaTac proposal is backed by community groups and unions, while the opposition is being funded by corporation and industry groups.

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Surgical Care Affiliates climbs after $235M IPO

NEW YORK — Shares of Surgical Care Affiliates are rising after the outpatient surgical center operator's initial public offering raised a total of $234.7 million.

The company's IPO of 9.8 million shares priced at $24 per share, at the high end of its estimates. The stock rose $3.60, or 15 percent, to $27.60 Wednesday morning.

Surgical Care Affiliates Inc. is selling 7.9 million shares for $188.6 million in gross proceeds. The remaining shares are being sold by company shareholders.

The underwriters of the IPO will have the option to buy another 1.5 million shares from those shareholders.

Surgical Care Affiliates is based in Deerfield, Ill. It runs the third-largest network of outpatient surgery centers in the U.S. Its shares are trading on the Nasdaq Global Select Market under the ticker symbol "SCAI."

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Calder's heirs accuse longtime NY dealer of fraud

NEW YORK — Heirs of sculptor Alexander Calder are accusing his dealer of swindling his estate out of tens of millions of dollars.

The New York Times reports  that a lawsuit filed in New York describes art dealer Klaus G. Perls as a tax cheat who stashed millions in a Swiss bank account. The suit also says Perls sold dozens of fake Calders.

A lawyer for the Perls side declined to comment. But in court papers he describes the lawsuit as a "sham and manufactured claim."

Calder was one of the most celebrated American artists of the 20th century, best known for hanging mobiles. He died in 1976. He came from a family of artists: His father was also a sculptor, and his grandfather created a statue of William Penn that's perched atop Philadelphia's City Hall.

Perls died in 2008.

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Information from: The New York Times, http://www.nytimes.com

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ADP: US companies add just 130K jobs in October

WASHINGTON — A private survey shows U.S. businesses added just 130,000 jobs in October, as the 16-day partial government shutdown slowed an already-weak job market.

Payroll processor ADP also said Wednesday that companies created just 145,000 jobs in September, far below the 166,000 it had reported earlier this month.

The job market had been weakening even before the shutdown started Oct. 1. Employers were also worried about a standoff over raising the federal borrowing limit.

The September job figures were the fewest for the ADP survey since April. Hiring was especially sluggish among companies with fewer than 500 employees. Job creation at services companies fell to 107,000 in October from 130,000 last month.

"The ADP data are pointing to some negative effects from the turmoil in Washington," said Jim O'Sullivan, chief U.S. economist at High Frequency Economics.

The shutdown, which began on Oct. 1, led some private contractors that do business with the government to temporarily lay off workers. It also may have prompted some companies to hold off on adding new workers.

The ADP survey covers only private businesses and did not reflect government furloughs caused by the shutdown. The figures often diverge from the Labor Department's more comprehensive employment report, which is due on Nov. 8.

Government statistics show that private and government employers added an average 143,000 jobs a month from July through September, down from an average 195,000 a month from January through June.

Job growth was strong enough in September to lower the unemployment rate to 7.2 percent, the lowest since November 2008. However, the rate remains extremely high more than four years after the Great Recession ended.

And unemployment has been falling partly because many Americans have stopped looking for work and are no longer counted among the unemployed. Instead, they've retired, enrolled in school or given up on finding a job. The percentage of Americans working or looking for work — the so-called labor force participation rate — remained at a 35-year low 63.2 percent in September.

"The government shutdown and debt limit brinkmanship hurt the already softening job market in October," said Mark Zandi, chief economist at Moody's Analytics, which helps compile the ADP report. "Any further weakening would signal rising unemployment. "

The weaker job market makes it less likely that the Federal Reserve will announce any reduction this year in its $85 billion-a-month bond-buying program. The bond purchases are intended to push down long-term interest rates and encourage borrowing and spending. The Fed wraps up a two-day meeting Wednesday.

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Concerns raised about security of health website

WASHINGTON — Defending President Barack Obama's much-maligned health care overhaul in Congress, his top health official was confronted Wednesday with a government memo raising new security concerns about the trouble-prone website that consumers are using to enroll.

The document, obtained by The Associated Press, shows that administration officials at the Centers for Medicare and Medicaid Services were concerned that a lack of testing posed a potentially "high" security risk for the HealthCare.gov website serving 36 states. It was granted a temporary security certificate so it could operate.

Security issues are a new concern for the troubled HealthCare.gov website. If they cannot be resolved, they could prove to be more serious than the long list of technical problems the administration is trying to address.

"You accepted a risk on behalf of every user...that put their personal financial information at risk," Rep. Mike Rogers, R-Mich., told Health and Human Services Secretary Kathleen Sebelius during questioning before the House Energy and Commerce Committee. "Amazon would never do this. ProFlowers would never do this. Kayak would never do this. This is completely an unacceptable level of security."

Sebelius countered that the system is secure, even though the site has a temporary certificate, known in government parlance as an "authority to operate." Sebelius said a permanent certificate will only be issued once all security issues are addressed.

Added spokeswoman Joanne Peters: "When consumers fill out their online...applications, they can trust that the information they're providing is protected by stringent security standards and that the technology underlying the application process has been tested and is secure. Security testing happens on an ongoing basis using industry best practices."

A security certificate is required before any government computer system can process, store or transmit agency data. Temporary certificates are allowable, but under specific circumstances.

Earlier, the secretary said she's responsible for the "debacle" of cascading problems that overwhelmed the government website intended to make shopping for health insurance clear and simple.

"Hold me accountable for the debacle," Sebelius said during a contentious hearing. "I'm responsible."

Sebelius is promising to have the problems fixed by Nov. 30, even as Republicans opposed to Obama's health care law are calling in chorus for her resignation. She told the committee that the technical issues that led to frozen screens and error messages are being cleared up on a daily basis.

Addressing consumers, Sebelius added, "So let me say directly to these Americans, you deserve better. I apologize."

The Sept. 27 memo to Medicare chief Marylin Tavenner said a website contractor wasn't able to test all the security controls in one complete version of the system.

"From a security perspective, the aspects of the system that were not tested due to the ongoing development, exposed a level of uncertainty that can be deemed as a high risk for the (website)," the memo said.

It recommended setting up a security team to address risks, conduct daily tests, and a full security test within two to three months of going live.

HealthCare.gov was intended to be the online gateway to coverage for millions of uninsured Americans, as well those who purchase their policies individually. Many people in the latter group will have to get new insurance next year, because their policies do not meet the standards of the new law.

Sebelius' forthright statement about her ultimate accountability came as she was being peppered with questions by Rep. Marsha Blackburn, R-Tenn., about who was responsible. It was Blackburn who introduced the term "debacle."

Rep. Henry Waxman of California, the ranking Democrat on the committee, scoffed at Republican "oversight" of a law they have repeatedly tried to repeal.

"I would urge my colleagues to stop hyperventilating," said Waxman. "The problems with HealthCare.gov are unfortunate and we should investigate them, but they will be fixed. And then every American will have -- finally have access to affordable health insurance."

Throughout the hearing, Sebelius was respectful and poised, often addressing lawmakers as "sir" or "congresswoman." She kept her cool as some lawmakers repeatedly cut off her answers. But she did not shy a few times from tersely interjecting her views while a member was speaking.

The standing-room-only hearing room was silent when she swore an oath to tell the truth and began her statement. "I apologize," she told the rapt committee.

Sebelius faced questions about problems with the website as well as a wave of cancellation notices hitting individuals and small businesses who buy their own insurance.

Lawmakers also want to know how many people have enrolled in plans through the health exchanges, a number the Obama administration has so far refused to divulge, instead promising to release it in mid-November.

On Tuesday, Medicare chief Marilyn Tavenner was questioned for nearly three hours by members of the House Ways and Means Committee who wanted to know why so many of their constituents were getting cancellation notices from their insurance companies.

The cancellations problem goes to one of Obama's earliest promises about the health law: You can keep your plan if you like it. The promise dates back to June 2009, when Congress was starting to grapple with overhauling the health care system to cover uninsured Americans.

As early as last spring, state insurance commissioners started giving insurers the option of canceling existing individual plans for 2014, because the coverage required under Obama's law is significantly more robust. Some states directed insurers to issue cancellations. Large employer plans that cover most workers and their families are unlikely to be affected.

The law includes a complicated "grandfathering" system to try to make good on Obama's pledge. It shields plans from the law's requirements provided the plans themselves change very little. Insurers say it has proven impractical. The cancellation notices are now reaching policyholders.

Tavenner blamed insurance companies for cancelling the policies and said most people who lose coverage will be able to find better replacement plans in the health insurance exchanges, in some cases for less money.

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Anheuser-Busch InBev, Teamsters to start talks

ST. LOUIS — Anheuser-Busch InBev and the Teamsters union are about to begin contract talks for the first time since the Belgian brewer InBev purchased the maker of Budweiser, Bud Light and other beers five years ago.

Meetings will start early next month, both sides said in a joint statement Tuesday, though a specific time and place were not disclosed. Anheuser-Busch InBev commands a 47.6 percent share of the U.S. beer market.

At issue is a new contract for workers at Anheuser-Busch's 12 U.S. breweries, including St. Louis, the U.S. headquarters for Anheuser-Busch InBev. The current contract expires on Feb. 28.

"The Company and the Union expect these negotiations to be professional and productive, and look forward to a conclusion which they believe is in the best interests of the Company, its employees, its shareholders and the International Brotherhood of Teamsters," read a statement from Pat Knipper, vice president of labor relations for A-B, and David Laughton, a Teamsters director.

It will be the first Teamsters contract since InBev purchased St. Louis-based Anheuser-Busch in 2008. Soon after the merger was announced, Anheuser-Busch and the Teamsters reached agreement on the five-year contract covering more than 5,000 employees. That deal included a renewal of the company's contractual commitment to keep all 12 breweries open for the span of the contract.

It wasn't clear if that issue would be on the table again. Anheuser-Busch spokesman Anthony Paraino on Wednesday declined comment beyond the written statement. A message left with the Teamsters was not immediately returned.

In addition to St. Louis, Anheuser-Busch operates breweries in Newark, N.J., Los Angeles, Houston, Columbus, Ohio, Jacksonville, Fla., Merrimack, N.H., Williamsburg, Va., Fairfield, Calif., Baldwinsville, N.Y., Fort Collins, Colo., and Cartersville, Ga.

The brewer is expected to announce third-quarter earnings on Thursday.

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Oil falls after another increase in US supplies

NEW YORK — The price of oil fell more than $1 a barrel Wednesday as the U.S. government reported another big increase in crude oil supplies.

Benchmark U.S. crude for December delivery dropped $1.10 to $97.10 a barrel at midday on the New York Mercantile Exchange. The contract dropped 48 cents on Tuesday and is down about 4 percent in October.

An Energy Department report released Wednesday for the week ended Oct. 25 showed an increase of 4.1 million barrels in crude oil stocks. Over five weeks, supplies have risen by more than 25 million barrels.

Analysts surveyed by Platts, the energy information arm of McGraw-Hill Cos., expected supplies to rise 3.5 million barrels last week.

The market is also waiting for Wednesday's outcome of a two-day Federal Reserve policy meeting. The Fed is expected to reinforce expectations that it won't begin reducing its mammoth monetary stimulus until next year.

Brent crude, a benchmark for international crude also used by U.S. refineries, slipped 19 cents to $108.82 on the ICE exchange in London.

In other energy futures trading on Nymex:

— Wholesale gasoline rose 2 cents to $2.63 a gallon.

— Heating oil rose 1 cent to $2.98 a gallon.

— Natural gas rose 1 cent to $3.64 per 1,000 cubic feet.

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Search for dark matter comes up empty so far

LEAD, S.D. — Nearly a mile underground in an abandoned gold mine, one of the most important quests in physics has come up empty-handed in the search for the elusive substance known as dark matter, scientists announced Wednesday.

The most advanced Earth-based search for the mysterious material that has mass but cannot be seen turned up "absolutely no signal" of dark matter, said Richard Gaitskell of Brown University, a scientist working on the Large Underground Xenon experiment, or LUX. A detector attached to the International Space Station has so far also failed to find any dark matter, either.

Physicists released their initial findings Wednesday after the experiment's first few months of operation at the Sanford Underground Research Facility, which was built in the former Homestake gold mine in South Dakota's Black Hills.

With 4,580 feet of earth helping screen out background radiation, scientists tried to trap dark matter, which they hoped would be revealed in the form of weakly interacting massive particles, nicknamed WIMPS. The search, using the most sensitive equipment in the world, tried looking for the light fingerprint of a WIMP bouncing off an atomic nucleus of xenon cooled to minus 150 degrees.

But nothing was found, The team plans to keep looking for another year, but members are not optimistic about finding dark matter with the current setup. They are already planning to build a more sensitive experiment on the site, using a bigger tank of xenon.

"The short story is that we didn't see dark matter interacting, but we had the most sensitive search for dark matter ever performed in the world," said Daniel McKinsey, a physicist at Yale University.

The lab, in a bright, clean space at the end of an old mining tunnel filled with pipes and electric cables, is reached by a 10-minute ride in an elevator that once carried miners. Gaitskell and McKinsey said the experiment has far less radiation interference from cosmic rays than any other dark-matter lab.

Essentially, scientists are searching for something they are fairly sure exists and is crucial to the entire universe. But they do not know what it looks like or where to find it. And they are not sure if it's a bunch of light particles that weakly interact or if it is more like a black hole.

"It's ghost-like matter," McKinsey said.

Researchers "are really searching in the dark in a way," said Harvard University physicist Avi Loeb, who is not part of the LUX team. "We have no clue. We don't know what this matter is."

Even more so than the recently discovered Higgs boson, dark matter is central to the universe.

About one-quarter of the cosmos is comprised of dark matter — five times that of the ordinary matter that makes up everything we see. Dark matter is often defined by what it isn't: something that can be seen and something that is energy.

Scientists are pretty sure dark matter exists, but they are not certain what it is made of or how it interacts with ordinary matter. It is considered vital to all the scientific theories explaining how the universe is expanding and how galaxies move and interact.

"We know there's stuff out there that is something else and that makes these searches hugely important because we know we are missing most of the universe," said Neal Weiner, director of the Center for Cosmology and Particle Physics at New York University, who was not part of the search.

Gaitskell and McKinsey said they looked for three "candidate WIMP events" that other teams' experiments hinted at finding. And LUX came up completely empty, indicating that those other experiments must not have found anything.

The lack of success could just mean the equipment isn't sensitive enough, so bigger, more sensitive and expensive instruments will be needed, Gaitskell and McKinsey said.

Or, considering the lack of knowledge about what dark matter really is, "perhaps we're going in the wrong direction," Loeb said.

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Borenstein reported from Washington. He can be followed at http://twitter.com/borenbears .

Chet Brokaw can be followed at http://twitter.com/ChetBrokaw .

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Online:

Sanford lab: http://sanfordlab.org

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City: Odor from Sriracha chili plant a nuisance

IRWINDALE, Calif. — It looked like things were really starting to heat up for this little Southern California factory town when the maker of the Sriracha chili sauce known the world over decided to open a sprawling 650,000-square-foot factory within its borders.

Getting the jobs and economic boost was great. Getting a whiff of the sauce being made wasn't, at least for a few Irwindale residents. So much so that the city is now suing Huy Fong Foods, seeking to shut down production at the 2-year-old plant until its operators make the smell go away.

"It's like having a plate of chili peppers shoved right in your face," said Ruby Sanchez, who lives almost directly across the street from the shiny, new $40 million plant where some 100 million pounds of peppers a year are processed into Sriracha (pronounced "sree-YAH-chah) and two other popular Asian food sauces.

As many as 40 trucks a day pull up to unload red hot chili peppers by the millions. Each plump, vine-ripened jalapeno pepper from central California then goes inside on a conveyor belt where it is washed, mixed with garlic and a few other ingredients and roasted. The pungent smell of peppers and garlic fumes is sent through a carbon-based filtration system that dissipates them before they leave the building, but not nearly enough say residents.

"Whenever the wind blows that chili and garlic and whatever else is in it, it's very, very, very strong," Sanchez said. "It makes you cough."

Down the street, her neighbor Rafael Gomez said it not only makes him and his kids cough and sneeze, but gives them headaches, burns their throats and makes their eyes water.

If the kids and their dog are playing in the backyard, he brings them inside. If the windows are open, he closes them.

"I smelled it a half a mile away the other day when I was picking my kids up at school," he said.

The odor is only there for about three months, during the California jalapeno pepper harvest season, which stretches from August to about the end of October or first week of November.

"This is the time, as they are crushing the chilis and mixing them with the other ingredients, that the odors really come out," said City Attorney Frank Galante, adding Irwindale officials have gotten numerous complaints.

City officials met with company executives earlier this month and, although both sides say the meeting was cordial, the company balked at shelling out what it said would be $600,000 to put in a new filtration system it doesn't believe it needs. As company officials were looking into other alternatives, said director of operations Adam Holliday, the city sued. The case goes to court on Thursday.

"We don't think it should have ever come to this," Holliday said.

In one respect, Huy Fong is a victim of its amazing success.

Company founder David Tran started cooking up his signature product in a bucket in 1980 and delivering it by van to a handful of customers. The company quickly grew and he moved it to a factory in the nearby city of Rosemead. When it outgrew that facility two years ago he came to Irwindale, bringing about 60 full-time jobs and 200 more seasonal ones to the city of about 1,400 people.

He says his privately held business took in about $85 million last year.

His recipe for Sriracha is so simple that the Vietnamese immigrant has never bothered to conceal it: chili pepper, garlic, salt, sugar and vinegar.

"You could make it yourself at home," he told a visitor during a tour of the plant on Tuesday. But, he added with a twinkle in his eye, not nearly as well as he can.

The secret, he said, is in getting the freshest peppers possible and processing them immediately.

The result is a sauce so fiercely hot it makes Tabasco and Picante seem mild, though to those with fireproof palates and iron stomachs it is strangely addicting. Thirty-three years after Tran turned out his first bucketful, Sriracha's little plastic squeeze bottles with their distinctive green caps are ubiquitous in restaurants and home pantries around the world.

Even Galante, who is suing Huy Fong Foods, speaks highly of the sauce.

"It is a good product. The city has no issue with the product," he said. "They just want them to upgrade, as good neighbors, and not negatively affect the residents."

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