Possible Dorner Sighting Leads to Store Evacuation

A Northridge, Calif., home improvement store was evacuated tonight because of a possible sighting of suspected cop-killer Christopher Dorner, just hours after police announced a $1 million reward for information leading to his arrest.

As helicopters hovered overhead and a command center was established, police searched the Lowe's store and eventually told shoppers they could leave, but could not take their cars out of the parking lot.

LAPD spokesman Gus Villanueva said the major response to the possible sighting was a precaution, but couldn't say whether Dorner was in the area.

The announcement of the $1 million reward today came as authorities in Big Bear, Calif., scaled back their search for Dorner, the disgruntled ex-cop who is suspected in three revenge killings.

"This is the largest local reward ever offered, to our knowledge," Los Angeles Police Chief Charlie Beck said at a news conference today. "This is an act of domestic terrorism. This is a man who has targeted those that we entrust to protect the public. His actions cannot go unanswered."

The money for the reward was pooled by businesses, government, local law enforcement leaders and individual donors, Beck said.

PHOTOS: Former LAPD Officer Suspected in Shootings

The reward comes on the fourth day of a manhunt for Dorner, who has left Southern California on edge after he allegedly went on a killing spree last week to avenge his firing from the police force. Dorner outlined his grievances in a 6,000 word so-called "manifesto" and said he will keep killing until the truth is known about his case.

Irvine Police Department/AP Photo

Manhunt for Alleged Cop Killer Heads to California Mountains Watch Video

Christopher Dorner Search: Officials Search for Ex-officer in the Mountains Watch Video

Dorner's threats have prompted the LAPD to provide more than 50 law enforcement families with security and surveillance detail, Beck said.

Authorities are chasing leads, however they declined to say where in order to not impede the investigation.

Dorner's burned-out truck was found Thursday near Big Bear Lake, a popular skiing destination located 80 miles northeast of Los Angeles.

Investigators found two AR-15 assault rifles in the burned-out truck Dorner abandoned, sources told ABC News.

The truck had a broken axle, which may be the reason he decided to set fire to it, the police sources said.

Full Coverage: Christopher Jordan Dorner

Officers have spent the past couple of days going door-to-door and searching vacant cabins. The manhunt was scaled back to 25 officers and one helicopter in the resort town today, according to the San Bernadino Sheriff's Office.

On Saturday, Beck announced he would reopen the investigation into Dorner's firing but said the decision was not made to "appease" the fugitive ex-cop.

"I feel we need to also publicly address Dorner's allegations regarding his termination of employment, and to do so I have directed our Professionals Standards Bureau and my Special Assistant for Constitutional Policing to completely review the Dorner complaint of 2007; To include a re-examination of all evidence and a re-interview of witnesses," Beck said. "We will also investigate any allegations made in his manifesto which were not included in his original complaint."

Dorner is suspected of killing Monica Quan and her fiancé Keith Lawrence last Sunday in their car in the parking lot of their Irvine, Calif., condominium complex. Both were struck with multiple gunshot wounds.

Quan's father, Randal Quan, was a retired captain with the LAPD and attorney who represented Dorner before a police review board that led to Dorner's dismissal from the force in 2008.

On Wednesday, after Dorner was identified as a suspect in the double murder, police believe he ambushed two Riverside police officers, killing one and wounding the other.

The next day, Randal Quan reported he received a taunting call from a man claiming to be Dorner who told him that he "should have done a better job of protecting his daughter," according to court documents documents.

Anyone with information leading to the arrest of Christopher Dorner is asked to call the LAPD task force at 213-486-6860.

ABC News' Dean Schabner, Jack Date, Pierre Thomas, Jason Ryan and Clayton Sandell and The Associated Press contributed to this report.

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Israel's Lieberman says Palestinian peace accord impossible

JERUSALEM (Reuters) - Israel has no chance of signing a permanent peace accord with the Palestinians and should instead seek a long-term interim deal, the most powerful political partner of Prime Minister Benjamin Netanyahu said on Saturday.

The remarks by Avigdor Lieberman, an ultranationalist whose joint party list with Netanyahu narrowly won a January 22 election while centrist challengers made surprise gains, seemed designed to dampen expectations at home and abroad of fresh peacemaking.

A spring visit to Israel and the Palestinian territories by U.S. President Barack Obama, announced this week, has stirred speculation that foreign pressure for a diplomatic breakthrough could build - though Washington played down that possibility.

In a television interview, ex-foreign minister Lieberman linked the more than two-year-old impasse to pan-Arab political upheaval that has boosted Islamists hostile to the Jewish state.

These include Hamas, rivals of U.S.-backed Palestinian President Mahmoud Abbas, who control the Gaza Strip and spurn coexistence with Israel though they have mooted extended truces.

"Anyone who thinks that in the center of this socio-diplomatic ocean, this tsunami which is jarring the Arab world, it is possible to arrive at the magic solution of a comprehensive peace with the Palestinians does not understand," Lieberman told Israel's Channel Two.

"This is impossible. It is not possible to solve the conflict here. The conflict can be managed and it is important to manage the conflict ... to negotiate on a long-term interim agreement."

Abbas broke off talks in late 2010 in protest at Israel's settlement of the occupied West Bank. He angered Israel and the United States in November by securing a U.N. status upgrade that implicitly recognized Palestinian independence in all the West Bank, East Jerusalem and Gaza.

Israel insists it will keep East Jerusalem and swathes of West Bank settlements under any eventual peace deal. Most world powers consider the settlements illegal because they take up land seized in the 1967 Middle East war.

Lieberman, himself a West Bank settler, said the ball was "in Abu Mazen's (Abbas') court" to revive diplomacy.

Abbas has demanded Israel first freeze all settlement construction. With two decades gone since Palestinians signed their first interim deal with Israel, he has ruled out any new negotiations that do not solemnize Palestinian statehood.

Netanyahu's spokesman Mark Regev noted that Lieberman, in the Channel Two interview, had said he was expressing his own opinion.

Asked how Netanyahu saw peace prospects for an accord with the Palestinians, Regev referred to a speech on Tuesday in which the conservative prime minister said that Israel, while addressing threats by its enemies, "must also pursue secure, stable and realistic peace with our neighbors".

Netanyahu has previously spoken in favor of a Palestinian state, though he has been cagey on its borders and whether he would be prepared to dismantle Israeli settlements.

Lieberman's role in the next coalition government is unclear as he faces trial for corruption. If convicted, he could be barred from the cabinet. Lieberman denies wrongdoing and has said he would like to regain the foreign portfolio, which he surrendered after his indictment was announced last year.

(Writing by Dan Williams; Editing by Stephen Powell)

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US S&P suit points to ratings industry's role in crisis

NEW YORK: The US government's $5 billion lawsuit against Standard & Poor's for exaggerating mortgage bond ratings in 2007 has cast a pall over the ratings industry and exposed its role in the financial crisis.

S&P competitors Moody's and Fitch find themselves potentially facing penalties after the Justice Department alleged S&P knowingly kept ratings on high-risk mortgage securities high in order to win revenues from issuers.

The Justice Department has not said whether it has the other two ratings agencies in its sights, but Moody's spent much of the week fending off questions about whether it faces similar action following the S&P suit.

The New York Attorney General has meanwhile launched an investigation into all three companies over their ratings prior to the 2008 crisis, sources close to the matter told AFP.

S&P parent McGraw-Hill's shares plunged 27 percent after the suit was filed, and Moody's dropped 22 percent for the week, underscoring the market's worry that the crackdown on S&P may be just the tip of the iceberg.

"Investors have been selling those stocks aggressively this week and keep doing so out of fear that the situation with the Department of Justice could get a lot worse in the future," said Wedbush Securities analyst Michael James.

"They think there is probably more bad news to come."

The government's case argues that S&P knowingly placed triple-A ratings on billions of dollars worth of mortgage-based financial securities even as the US housing market collapsed, misrepresenting their true credit risk.

Many of the top-rated issues cited in the suit were in default within one year or less.

S&P exaggerated the ratings in part to please clients and keep issuer revenues high, the suit alleges.

US Attorney General Eric Holder called S&P's conduct "egregious", saying "it goes to the very heart of the recent financial crisis".

S&P has dismissed the lawsuit as "meritless" and said it plans to vigorously contest the claims.

The litigation, which reportedly came after settlement talks failed, poses a huge financial challenge to S&P and McGraw-Hill.

Justice Department officials said they intend to press for at least $5 billion in civil penalties to match the losses suffered by investors on the securities.

S&P is also being sued by 13 states, adding to the potential damages.

The attorney general of California cited two large institutional investors, the California Public Employees Retirement System and the California State Teachers Retirement System, which lost approximately $1 billion on the high-rated mortgage bonds.

A California statement said the suit claims triple damages.

To put those figures in context, McGraw-Hill earned $911 million in all of 2011.

Many were wondering if or when the government will take action against Moody's. A multi-billion dollar suit could devastate that company as well: on Friday, Moody's reported 2012 earnings of $690 million.

Jacob Frenkel, a former federal criminal prosecutor now in private practice with Shulman Rogers, said S&P could possibly settle the case in the range of "hundreds of millions of dollars".

But he said that the terms of a settlement -- what the company admits to, in addition to paying fines -- are crucial.

A key question concerns whether the government insists on S&P admitting liability, which could expose the firm to additional suits by investors in the securities it rated, Frenkel said.

Charles Elson, director of the John L. Weinberg Center for Corporate Governance, thinks the government could have a hard time proving its case against S&P.

"Unless you can show the opinion was reached in an intentionally reckless way, it's pretty hard to prove," Elson said.

Frenkel said the language in the complaint suggests the government could have pursued a criminal case against S&P.

That would raise the stakes: the 2002 US criminal conviction of former accounting giant Arthur Andersen in the aftermath of the Enron scandal eventually led to the firm's demise.

But Frenkel said the government is mainly focused on "integrity in the ratings process".

"The government would prefer to win a civil case than lose a criminal case," he said, "particularly where there is a concern about vaporizing the company."

- AFP/al

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Conspiracy theory: Was due process flouted to deny Afzal Guru a bid to escape hangman?

NEW DELHI: Although both have been executed in a hush-hush manner citing security reasons, the dilution of due process was greater in Mohammad Afzal Guru's hanging than in Ajmal Kasab's.

The denial of an opportunity to challenge the President's decision on the mercy petition was more likely to have affected Guru's fate for, unlike Kasab, he was not present at the crime scene when Parliament was attacked and he did not himself kill anybody.

In fact, after Kehar Singh's execution in the Indira Gandhi case, Guru was the only conspirator to have ever been hanged in connection with any high-profile crime. The three conspirators in the Rajiv Gandhi case, although awarded death penalty earlier than Guru, have so far been spared the noose because of a stay from the Madras high court on their execution. The stay came in 2011 on their plea that the death penalty be commuted to life sentence as the President had rejected their mercy petitions after an "inordinate and unexplained" delay.

Had he and his counsel been similarly given an advance notice of the rejection of his mercy petition, Guru too could have exercised his right to challenge the President's decision on the ground of delay, as he had filed his plea more than seven years ago.

Besides, Guru was better placed than Kasab to seek clemency on procedural and substantive grounds. Thanks to his oft-quoted grievance that he did not get a counsel of his choice during the trial, there has been much debate in legal and human rights circles on whether Guru had been given a fair trial.

Another controversial aspect of Guru's conviction is that successive courts had allegedly glossed over his claim that, as a surrendered militant, he had provided logistical support for the attack on Parliament on the instructions of security agencies in Kashmir.

The dilution of due process was also evident from the government's failure to comply with the stipulation of the jail manual to inform Guru's family about the date of the execution. The compromise is more evident in Guru's case because, unlike Kasab, his family members are Indians, who live in Kashmir. The rationale behind this stipulation is to provide the convict a chance to meet his family members for the last time.

In Kasab's case, the government claimed to have sent a communication to Pakistan to inform his family before his hanging. Despite the government's claim to have done the same in Guru's case, his family was in fact delivered with a fait accomppli.

This is the third mercy petition to have been rejected by President Pranab Mukherjee. Saibanna's case highlighted the deviation made in the cases of Kasab and Guru. For, the rejection of Saibanna's plea was made public, giving him scope to challenge it as also to meet his relatives.

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After early start, worst of flu season may be over

NEW YORK (AP) — The worst of the flu season appears to be over.

The number of states reporting intense or widespread illnesses dropped again last week, and in a few states there was very little flu going around, U.S. health officials said Friday.

The season started earlier than normal, first in the Southeast and then spreading. But now, by some measures, flu activity has been ebbing for at least four weeks in much of the country. Flu and pneumonia deaths also dropped the last two weeks, the Centers for Disease Control and Prevention reported.

"It's likely that the worst of the current flu season is over," CDC spokesman Tom Skinner said.

But flu is hard to predict, he and others stressed, and there have been spikes late in the season in the past.

For now, states like Georgia and New York — where doctor's offices were jammed a few weeks ago — are reporting low flu activity. The hot spots are now the West Coast and the Southwest.

Among the places that have seen a drop: Lehigh Valley Hospital-Cedar Crest in Allentown, Pa., which put up a tent outside its emergency room last month to help deal with the steady stream of patients. There were about 100 patients each day back then. Now it's down to 25 and the hospital may pack up its tent next week, said Terry Burger, director of infection control and prevention for the hospital.

"There's no question that we're seeing a decline," she said.

In early December, CDC officials announced flu season had arrived, a month earlier than usual. They were worried, saying it had been nine years since a winter flu season started like this one. That was 2003-04 — one of the deadliest seasons in the past 35 years, with more than 48,000 deaths.

Like this year, the major flu strain was one that tends to make people sicker, especially the elderly, who are most vulnerable to flu and its complications

But back then, that year's flu vaccine wasn't made to protect against that bug, and fewer people got flu shots. The vaccine is reformulated almost every year, and the CDC has said this year's vaccine is a good match to the types that are circulating. A preliminary CDC study showed it is about 60 percent effective, which is close to the average.

So far, the season has been labeled moderately severe.

Like others, Lehigh Valley's Burger was cautious about making predictions. "I'm not certain we're completely out of the woods," with more wintry weather ahead and people likely to be packed indoors where flu can spread around, she said.

The government does not keep a running tally of flu-related deaths in adults, but has received reports of 59 deaths in children. The most — nine — were in Texas, where flu activity was still high last week. Roughly 100 children die in an average flu season, the CDC says

On average, about 24,000 Americans die each flu season, according to the CDC.

According to the CDC report, the number of states with intense activity is down to 19, from 24 the previous week, and flu is widespread in 38 states, down from 42.

Flu is now minimal in Florida, Kentucky, Maine, Montana, New Hampshire and South Carolina.

___

Online:

CDC: http://www.cdc.gov/flu/

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LAPD Reopens Case of Suspected Cop-Killer's Firing

The Los Angeles Police Department announced today it will reopen the case of the firing of Christopher Dorner, but said the decision was not made to "appease" the fugitive former cop suspected of killing three people.

Dorner, a fired and disgruntled former Los Angeles police officer, said in the so-called "manifesto" he released that he was targeting LAPD officials and their families and will keep killing until the truth is known about his case.

"I have no doubt that the law enforcement community will bring to an end the reign of terror perpetrated on our region by Christopher Jordan Dorner and he will be held accountable for his evil actions," LAPD Chief Charlie Beck said in a statement released tonight.

He spoke of the "tremendous strides" the LAPD has made in regaining public trust after numerous scandals, but added: "I am aware of the ghosts of the LAPD's past and one of my biggest concerns is that they will be resurrected by Dorner's allegations of racism within the Department."

To do that, he said, full re-investigation of the case that led to Dorner's firing is necessary.

"I feel we need to also publicly address Dorner's allegations regarding his termination of employment, and to do so I have directed our Professionals Standards Bureau and my Special Assistant for Constitutional Policing to completely review the Dorner complaint of 2007; To include a re-examination of all evidence and a re-interview of witnesses," he said. "We will also investigate any allegations made in his manifesto which were not included in his original complaint.

Irvine Police Department/AP Photo

Hundreds of Officers on Hunt for Alleged Cop Killer Watch Video

Christopher Dorner Manhunt: Ex-Cop Suspected in Killings Watch Video

"I do this not to appease a murderer. I do it to reassure the public that their police department is transparent and fair in all the things we do."

PHOTOS: Former LAPD Officer Suspected in Shootings

As police searched for Dorner today in the San Bernardino Mountains, sources told ABC News that investigators found two AR-15 assault rifles in the burned-out truck Dorner abandoned.

The truck had a broken axle, which may be the reason he decided to set fire to it, the police sources said.

A man identifying himself as Dorner taunted the father of Monica Quan four days after the former LAPD officer allegedly killed her and just 11 hours after he allegedly killed a police officer in Riverside, Calif., according to court documents obtained by ABC News

A man claiming to be Dorner called Randall Quan and told him that that he "should have done a better job of protecting his daughter," according to the documents.

In his 6,000-word "manifesto," Dorner named Randal Quan, a retired LAPD captain and attorney who represented him before a police review board that led to Dorner's dismissal from the force.

"I never had an opportunity to have a family of my own, I'm terminating yours," Dorner wrote, and directed Quan and other officials to "[l]ook your wives/husbands and surviving children directly in the face and tell them the truth as to why your children are dead."

Monica Quan and her fiancé Keith Lawrence were gunned down last Sunday in their car in the parking of their Irvine, Calif., condominium complex. Both were struck with multiple gunshot wounds.

The call, according to court records, was traced to Vancouver, Wash., but law enforcement officials do not believe Dorner was there at the time at the call.

Dorner is believed to have made the call early Thursday afternoon, less than half a day after he is suspected of killing a police officer and wounding two others early that morning, sparking an unprecedented man hunt involving more than a thousand police officers and federal agents spanning hundreds of miles.

FULL COVERAGE: Christopher Jordan Dorner

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Japan may release data proving Chinese radar incident: media

TOKYO (Reuters) - Japan may release data it says will prove a Chinese naval vessel directed its fire control radar at a Japanese destroyer near disputed islands in the East China Sea, local media reported.

Japan has said a Chinese frigate on January 30 locked its targeting radar on a Japanese destroyer - a step that usually precedes the firing of weapons - but China insists that its vessel used only ordinary surveillance radar.

The incident has added to tensions between the two nations over the disputed islands.

Japan will consider how much normally classified data it can release, the media reports said, citing comments by Japan Defence Minister Itsunori Onodera on local television.

"The government is considering the extent of what can be disclosed," Kyodo news agency quoted Onodera as saying.

China has accused Japan of smearing its name with the accusations, and on Saturday, the official Xinhua news agency continued the war of words.

"By spreading false accusations and posing as a poor victim, Japan had intended to tarnish China's image so as to gain sympathy and support, but a lie does not help," it said in an English language commentary.

"China has been exercising maximum restraint and stayed committed to solving the dispute through dialogue and consultation."

Japan and China have been involved in a series of incidents in recent months in the East China Sea where Chinese and Japanese naval vessels regularly shadow each others movements.

Both countries claim a small clusters of islands, known as Diaoyu in China and Senkaku in Japan, believed to be rich in oil and gas. Controlled by Japan, possession of the uninhabited outcrops and the sea surrounding them would provide China with easier access to the Pacific.

Hopes had been rising for an easing in tensions, including a possible summit between Japanese Prime Minister Shinzo Abe and Chinese Communist Party chief Xi Jinping. But the radar issue has seen China and Japan engage in a fresh round of invective.

China's Defence Ministry on Thursday said Japan's complaints did not "match the facts". The Chinese ship's radar, it said, had maintained regular alerting and surveillance operations and the ship "did not use fire control radar".

Japan's position against China has hardened since Abe led his conservative party to a landslide election victory in December, promising to beef up the military and stand tough in territorial disputes.

The commander of U.S. forces in the Asia-Pacific said the squabble between Japan and China underlined the need for rules to prevent such incidents turning into serious conflict.

China also has ongoing territorial disputes with other Asian nations including Vietnam and the Philippines over islands in the South China Sea.

(Reporting by Tim Kelly; Additional reporting by Ben Blanchard in BEIJING; Editing by Michael Perry)

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Japan mulls disclosing evidence on China radar lock

TOKYO: Japan said on Saturday it was considering disclosing evidence to bolster its claim that a Chinese frigate locked its weapon-targeting radar on a Japanese ship, after Beijing rejected the charge.

The incident, which Japan said happened last week, marked the first time the two nations' navies have locked horns in a territorial dispute that has some commentators warning about possible armed conflict.

The neighbours -- also the world's second and third-largest economies -- have seen ties sour over uninhabited Japanese-controlled islands in the East China Sea known as Senkaku in Tokyo and Diaoyu by Beijing, which claims them.

"The government is considering the extent of what can be disclosed," Japan's Defence Minister Itsunori Onodera said on a television programme Saturday.

The comment came a day after Prime Minister Shinzo Abe demanded that Beijing apologise and admit the incident had happened.

Tokyo also charges that in the middle of last month a Chinese frigate's radar locked on to a helicopter, in a procedure known as "painting" that is a precursor to firing weaponry.

On both January 19 and January 30, China's defence ministry said in a statement faxed to AFP, the Chinese ship-board radar maintained normal operations and "fire-control radar was not used".

Japan hit back, with Foreign Minister Fumio Kishida saying he "cannot accept" the explanation and Prime Minister Abe demanding an apology from Beijing.

The Japanese premier on Thursday called the radar incident "extremely regrettable", "dangerous" and "provocative" but also said that dialogue must remain an option.

- AFP/xq

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Parliament House attack case convict hanged to death at 8am

NEW DELHI: Parliament House attack case convict Afzal Guru was hanged to death at Tihar Central Jail on Saturday morning.

The hanging took place in complete secrecy at around 8am with only a very select group of officials and home minister Sushilkumar Shinde knowing the operation to execute his death sentence.

His mercy plea, which had been pending since 2006, was rejected by the President Mukherjee late last month after getting the file from the home ministry on January 23.

Afzal Guru was convicted for his role in the attack on Parliament in 2001.

His hanging took place in as secret an operation as it had happened in the case of the hanging of the 26/11 Mumbai terror attack case convict Mohammed Ajmal Kasab who was hanged to death in a Pune jail in November last year.

Afzal Guru was given the death sentence by the Supreme Court in 2004. His hanging, scheduled for October 2006, was stayed after his wife filed a mercy petition on his behalf to the President.

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After early start, worst of flu season may be over

NEW YORK (AP) — The worst of the flu season appears to be over.

The number of states reporting intense or widespread illnesses dropped again last week, and in a few states there was very little flu going around, U.S. health officials said Friday.

The season started earlier than normal, first in the Southeast and then spreading. But now, by some measures, flu activity has been ebbing for at least four weeks in much of the country. Flu and pneumonia deaths also dropped the last two weeks, the Centers for Disease Control and Prevention reported.

"It's likely that the worst of the current flu season is over," CDC spokesman Tom Skinner said.

But flu is hard to predict, he and others stressed, and there have been spikes late in the season in the past.

For now, states like Georgia and New York — where doctor's offices were jammed a few weeks ago — are reporting low flu activity. The hot spots are now the West Coast and the Southwest.

Among the places that have seen a drop: Lehigh Valley Hospital-Cedar Crest in Allentown, Pa., which put up a tent outside its emergency room last month to help deal with the steady stream of patients. There were about 100 patients each day back then. Now it's down to 25 and the hospital may pack up its tent next week, said Terry Burger, director of infection control and prevention for the hospital.

"There's no question that we're seeing a decline," she said.

In early December, CDC officials announced flu season had arrived, a month earlier than usual. They were worried, saying it had been nine years since a winter flu season started like this one. That was 2003-04 — one of the deadliest seasons in the past 35 years, with more than 48,000 deaths.

Like this year, the major flu strain was one that tends to make people sicker, especially the elderly, who are most vulnerable to flu and its complications

But back then, that year's flu vaccine wasn't made to protect against that bug, and fewer people got flu shots. The vaccine is reformulated almost every year, and the CDC has said this year's vaccine is a good match to the types that are circulating. A preliminary CDC study showed it is about 60 percent effective, which is close to the average.

So far, the season has been labeled moderately severe.

Like others, Lehigh Valley's Burger was cautious about making predictions. "I'm not certain we're completely out of the woods," with more wintry weather ahead and people likely to be packed indoors where flu can spread around, she said.

The government does not keep a running tally of flu-related deaths in adults, but has received reports of 59 deaths in children. The most — nine — were in Texas, where flu activity was still high last week. Roughly 100 children die in an average flu season, the CDC says

On average, about 24,000 Americans die each flu season, according to the CDC.

According to the CDC report, the number of states with intense activity is down to 19, from 24 the previous week, and flu is widespread in 38 states, down from 42.

Flu is now minimal in Florida, Kentucky, Maine, Montana, New Hampshire and South Carolina.

___

Online:

CDC: http://www.cdc.gov/flu/

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