Congressional report says Equifax was ‘entirely preventable’ – MyAJC

The cyber breach of the credit reporting agency Equifax that exposed the sensitive personal data of 148 million Americans last year was “entirely preventable” and due in part to outdated security systems and an unaccountable corporate management structure, according to a blistering report from congressional investigators.

The Republican staff of the House Oversight and Government Reform Committee said Atlanta-based Equifax, one of three massive companies that collect and analyze reams of consumers’ information to sell to lenders, has a “heightened responsibility” to protect its data — and that it failed egregiously.

“Equifax failed to fully appreciate and mitigate its cybersecurity risks,” the 96-page report states. “Had the company taken action to address its observable security issues prior to this cyberattack, the data breach could have been prevented.”

The report, released Monday, caps off the committee’s 14-month investigation into the breach, which is one of the largest in U.S. history. It makes recommendations about ways that Congress, federal agencies and private companies can prevent future hacks, including moving away from Social Security numbers as the prime way to authenticate a person’s identity and studying ways to mitigate security risks.

But much like everything Congress does, the analysis is not without controversy.

The investigation was largely bipartisan, but the committee’s top Democrat, U.S. Rep. Elijah Cummings of Maryland, said the final report did not incorporate suggestions from Democrats to prevent future breaches. And Equifax itself said it identified “significant inaccuracies” with the report’s factual findings, even as it said it agreed with many of its recommendations.

“We are deeply disappointed that the Committee chose not to provide us with adequate time to review and respond to a 100-page report consisting of highly technical and important information,” company spokesman Jacob Hawkins said. “During the few hours we were given to conduct a preliminary review we identified significant inaccuracies and disagree with many of the factual findings.”

‘Failure to implement’

Equifax is a key cog in the global financial system, collecting consumer data such as Social Security numbers, driver’s license numbers and birthdates to help lenders verify a person’s identity and decide whether he or she is credit-worthy.

The sensitive nature of that information is what made the news so dire when the company announced in September 2017 that a security flaw allowed hackers to access the data of more than half of American adults from mid-May through the end of July last year, when the company discovered the breach.

The investigative report echoed testimony before Congress last year finding that Equifax was warned about the flaw in March 2017, but the company failed to make the fix before hackers could infiltrate the company’s systems.

The new House Oversight report said two main internal factors allowed the breach to occur.

First, it said the company grew too rapidly. As Equifax accelerated its acquisitions of smaller firms beginning in 2005, it couldn’t merge and streamline its information technology security programs fast enough, the report states.

Second, the structure of the Equifax’s IT department allowed for a “lack of accountability and no clear lines of authority.” The chaos led to the company allowing more than 300 security certificates to expire, with one critical vulnerability going unpatched for 145 days.

“The company’s failure to implement basic security protocols, including file integrity monitoring and network segmentation, allowed the attackers to access and remove large amounts of data,” according to the report.

The House Oversight panel also blamed Equifax for being wildly unprepared once it informed the public of the breach. A new website and 1,500-person call center were immediately overwhelmed, and employees were not properly trained to help consumers protect their identity. And the company’s Twitter account directed consumers to a phishing website for nearly two weeks before being fixed.

Consumer advocates have warned that victims could potentially be at risk for years because the pilfered information could be used to impersonate consumers and wreck their finances.

New recommendations

The report makes several recommendations to prevent future hacks, even as it did little to implicate Congress for failing to pass cybersecurity legislation before or after the breach. 

The document said lawmakers should review the powers of the Federal Trade Commission to punish businesses for making false or misleading claims about security or failing to take reasonable preventive measures. It also calls on the executive branch to make recommendations to Congress about identification protection services and to work with the private sector to mitigate cybersecurity risks.

In a separate report, Democrats called on Congress to pass a comprehensive law governing how and when the victims of data breaches should be notified and give the FTC power to levy stricter civil penalties when companies violate consumer data security rules.

Equifax’s Hawkins said the company was “generally supportive” of many of the recommendations in the GOP report and that it has already “made significant strides in many of these areas.”

“Since the incident, Equifax has moved forward, taking meaningful steps to enhance our technology and security programs and will continue to focus on consumers, customers and regaining trust with all stakeholders,” Hawkins said.

But the tone of Equifax’s response did not satisfy Liz Coyle, the executive director of the consumer advocacy group Georgia Watch.

“The tone was very much that Equifax was a victim, and that is just not the case,” she said. “Equifax uses consumer data to make money.”

Paul Stephens, the director of policy and advocacy at Privacy Rights Clearinghouse in California, commended Congress for “not trying to sweep it under the rug.” But he also said Congress has utterly failed to pass meaningful legislation — with steep financial penalties — to hold companies accountable for data security.

“You need to create financial incentives either through penalties or other tactics to dissuade companies from being sloppy with personal data in the future,” Stephens said. “There need to be standards and companies need to be held accountable if they don’t meet those standards.”

Coyle agreed, even as she said she agreed with some of the House Oversight panel’s specific recommendations on issues such as Social Security numbers.

After the breach

In addition to the congressional probe, a coalition of state attorneys general, including Georgia’s Chris Carr, launched an investigation into the hacking. The U.S. Attorney’s Office in Atlanta is also leading a federal criminal probe into the breach as well as a criminal investigation into allegations of insider trading by Equifax employees.

Two former Equifax employees were indicted on securities fraud charges earlier this year, and one pleaded guilty to trading his shares before the hacking was made public.

The breach led to the downfall of then-CEO Rick Smith, who over his tenure transformed the company from a pure credit bureau into a mammoth data analysis machine. Other senior executives also left the company, including the chief information and chief security officers at the time of the breach.

In the more than 14 months since the breach was disclosed, Equifax has also hired cybersecurity consultants and beefed up its data protections.

The company also cleaned house, appointing a new executive leadership team.

But mostly, Equifax has plowed ahead.

The company reported $2.6 billion in revenue and $274.2 million in profit through the first nine months of 2018.

In 2017, the company reported $113.3 million in pretax costs related to the hacking, and tens of millions more in costs related to providing a suite of credit protection services to consumers affected by the breach, according to securities filings.

Equifax said in its latest quarterly filing that it expects “to incur significant professional services expenses associated with the 2017 cybersecurity incident in future periods,” as well as costs related to technology and security improvements.


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Google CEO Denies the Company Is Politically Biased in Planned Testimony to Congress – TIME

Google Chief Executive Officer Sundar Pichai backed privacy legislation and denied the company is politically biased, according to a transcript of testimony he plans to deliver to Congress later this week.

“I lead this company without political bias and work to ensure that our products continue to operate that way,” Pichai said, according to the transcript released on Monday. “To do otherwise would go against our core principles and our business interests.”

He also described user privacy as “an essential part of our mission,” while stressing Google’s U.S. roots.

“As an American company, we cherish the values and freedoms that have allowed us to grow and serve so many users,” Pichai said. “I am proud to say we do work, and we will continue to work, with the government to keep our country safe and secure.”

Pichai is set to testify on Tuesday before a House Judiciary Committee hearing about the company’s data collection, search business and a range of other issues.

Alphabet Inc.’s Google proposed a framework for federal privacy legislation earlier this year.

The remarks did not directly address Google’s retreat from a U.S. Department of Defense contract or its proposed plans to bring a search engine back to China, two subjects that will likely come up during Tuesday’s hearing.

Contact us at editors@time.com.

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Fear of interest rate hikes is fading as next Fed meeting approaches – CNBC

The fear of the Fed is fading.

looming recession.

As of Monday, the odds were pretty low in the futures market that the Fed would raise interest rates more than one more time, though traders still expect the Fed to hike the fed funds rate by a quarter point next week. Stocks closed higher Monday, after the S&P 500 bounced off its early October low, and tech rallied as market leader Apple turned around.

The S&P 500 was up 0.2 percent to 2,637 but is still down more than 11 percent from its September high. Treasury yields, which move opposite price, also rose as investors sold bonds. The easing of anxiety in markets was paralleled by a view that the Fed might be easier in its approach to interest rate policy.

“To us the trade war and the Fed are the two biggest headwinds for the market,” said Julian Emanuel, head U.S. equity and derivatives strategist at BTIG. “I think part of the reason we’re not lower right now is that the market is starting to discount the probability of the Fed not moving next week.”

Emanuel said the expectations for a hike, based on the futures market, were less than 70 percent. “If you’re less than 75 percent, there’s a good chance the Fed won’t go,” he said. While most Fed watchers expect a hike when the Fed meets Dec. 18 and 19, there is definitely a different tone in the market.

“They could just basically say: We’re going to sit back, we’re going to see how things develop, you fix China and those kinds of things,” Emanuel said. Like many other strategists, Emanuel does not predict a recession next year, but the economy is expected to grow at a slower pace and the trade wars raise concerns that earnings growth could slow even more.

“The Fed’s ability to surprise the market has kind of diminished. They’ve been so transparent. They gave us this playbook that they’re going to follow,” said Boris Rjavinski, director rate strategy at Wells Fargo. “They kept telling us they’re data dependent and the data’s getting a little softer. If you rank it on a relative scale of where the possibility of the greatest surprise would be coming from now, it’s politics. It’s not monetary policy for the time being.”

Most Fed watchers still expect a December rate hike, but the fact that there is doubt about it shows the high level of anxiety in markets about both the economy and financial conditions, or the behavior of markets themselves. The fact that the November employment report Friday came in at just 155,000 payrolls, about 45,000 less than expected, also added to the sentiment that the Fed would have room to pause.

“You had this repricing with no new data, and the Federal Reserve officials are in the blackout period. The only new development was Brexit … and especially the increased probability there could be a hard Brexit,” said Jon Hill, BMO fixed income strategist. He said expectations for a March rate hike are just 12 percent, down from 20 percent early Monday.

Hill said the market is now pricing in just 60 percent of one quarter-point hike for all of next year. It had been pricing in one full hike last week.

But with Fed officials sounding more dovish and concerned about global growth, the Fed as an issue has fallen into the background somewhat. The markets are still fearful trade wars will hurt growth, as could geopolitical uncertainties surrounding Brexit and the special counsel’s investigation into President Donald Trump.

“It just feels like this is a time where people realize that political risks are of major consequence to the market, whether it’s Brexit, France, the special counsel’s investigation, the fact we now have a diplomatic skirmish with China as well as a trade war. You put it all together and it’s a lot for the market to handle, particularly during a part of the year where the liquidity tends to become less liquid in terms of the holiday bias is beginning,” Emanuel said.

Goldman Sachs economists, this past weekend, were among the latest to tweak their forecast for Fed rate hikes. They said there is now less than a 50 percent chance for a Fed rate hike in March, though they still see a 90 percent chance of a hike in December. They had previously forecast four hikes next year.

“The much more significant change is the sharp tightening in financial conditions. For a variety of reasons —including an initial bout of concern about [Fed Chairman Jerome] Powell’s ‘long way from neutral’ remark, the inevitable slowing of GDP and profit growth from their exceptionally strong pace, and the broadening tension between the US and China — rising investor anxiety has pushed up our [financial conditions index] by about 80bp since early October. If the FCI remains constant at its current level, we estimate that tighter financial conditions would take ¾-1pp off real GDP growth over the next year,” the Goldman economists wrote.

The Goldman economists had expected the Fed to raise rates four times, including March, and have forecast that growth would fall below 2 percent in the second part of next year. They now say it’s possible the Fed will change its rate hike forecast, expected to be released after its meeting next week.

Powell was responsible for some of the change in tone after he said the Fed is close to neutral, contradicting a comment he made in early October that neutral is a long way off. Neutral is the level that would no longer be stimulative or slowing to the economy. A parade of Fed officials also sounded more dovish recently, including Fed Vice Chairman Richard Clarida, who has flagged slowing global growth as an issue.

“The Fed has been very sensitive to the elements of growth and the elements of weakness and vulnerability in our economy and the world economy,” said John Stoltzfus, chief investment strategist at Oppenheimer Asset Management.

Stoltzfus said the market doesn’t trust the Fed, however, and it continues to be a fear factor. “There still is fear of the Fed. Some have said the honeymoon is over with Jay Powell. There never was a honeymoon as far as I’m concerned. The market didn’t trust [Ben] Bernanke for his whole term, and he was good to them. It didn’t trust Janet Yellen. It was a leftover from the [Alan] Greenspan era, when the Fed wasn’t transparent,” he said.

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Uber app is down across the country, according to user and driver reports – SF Gate

The Uber mobile application appears to be down in San Francisco, New York and other major cities.

People on social media were reporting problems with the app as of 4 p.m. Some claimed they had ordered from Uber Eats, only for their delivery to never arrive.

UBER NEWS: Uber’s self-driving cars set to return in smaller test

To those tweeting about the app issues, Uber Support replied: “We’re sorry for the trouble. Our team is looking into this and working to resolve ASAP.”

According to Down Detector, a website that offers status reports for websites and applications, nearly a thousand users reported problems with the Uber app starting at around 3 p.m. A live outage map shows the app is down for some users in Northern and Southern California, Las Vegas, Phoenix, Denver, Omaha, New York City, Raleigh and Washington D.C.


This story will be updated as more information becomes available. 

Read Michelle Robertson’s latest stories and send her news tips at mrobertson@sfchronicle.com.

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Analysts: Output Cuts To Balance Oil Markets In 2019 | OilPrice.com – OilPrice.com

With a few days to digest the specifics of the OPEC+ deal, most analysts deem the result a success. But that does not mean that there are no pitfalls left for the oil market.

On its face, the numbers are impressive. The group will cut a combined 1.2 million barrels per day (mb/d) beginning in January. “This agreement provided relief to oil markets, with Brent prices up $3/bbl initially, and the accompanying decline in fundamental uncertainty should further help reduce price and implied volatility levels from their recent highs,” Goldman Sachs wrote on Friday after the agreement was announced.

OPEC will cut by 0.8 mb/d and non-OPEC will reduce by 0.4 mb/d. Crucially, because the baseline for the cuts is October and not November, the cuts will be significant. “By our calculations, this means that OPEC’s January output will be 31.7mb/d, about 1.2mb/d less than November; a significantly larger fall from current output than the 0.8mb/d headline OPEC cut might suggest,” Standard Chartered wrote in a note. “We have previously suggested that any reduction that takes OPEC output below 32mb/d should be considered bullish.” Saudi Arabia will cut output to 10.2 mb/d in January, down about 0.9 mb/d from November levels.

“We think the projected level of output will balance the global market in 2019,” Standard Chartered concluded.

Other analysts agreed. “The announced reduction should lead to a relatively balanced global oil market and will likely push Brent and WTI prices back to our respective expected averages of $70/bbl and $59/bbl in 2019,” Bank of America Merrill Lynch wrote in a note. The investment bank said that the Brent futures market should flip back into a state of backwardation, in which front-month oil futures trade at a premium to longer-dated futures. That implies a bit of bullishness in the market. Related: Geopolitical Stakes Are Huge On This Tiny Island

There are also the mandatory cuts from Canada to consider – roughly 325,000 bpd will go offline in January for a period of time until surplus inventories are drained. “Combined with the production cuts in Canada, approx. 1.5 million fewer barrels per day will thus be available to the oil market in early 2019.

This should be more or less sufficient to rebalance the oil market next year,” Commerzbank wrote.

But that’s not all. Although several troubled countries received exemptions, including Libya, Iran and Nigeria, the odds of further losses from them are relatively high. Goldman Sachs forecasts 0.5 mb/d of declines from those countries.

So, we have 1.2 mb/d of reductions from OPEC+, 0.5 mb/d of declining production from the exempted countries, and 325,000 of cuts from Canada. There are still a lot of uncertainties in terms of compliance and unexpected events, but on its face, those reductions together total somewhere close to 2 mb/d.

Of course, things aren’t that simple, and Saudi Arabia in particular will likely adjust output levels in response to market conditions. If the losses from Iran, Libya or Nigeria are larger than expected, for instance, Riyadh could put supply back onto the market. As such, supply probably won’t fall by 2 mb/d. Related: OPEC+ Succeeds, What’s Next For Oil?

Moreover, the lack of country-specific production quotas leaves another aspect of uncertainty. Hard data on reductions may be necessary before oil prices can really climb higher. “[W]e reiterate our view that this additional price upside will need to be driven in coming months by evidence of (1) the implementation of the cuts in loadings data, as well as (2) a normalization of excess inventory levels, the stated goals of the agreement,” Goldman Sachs wrote. “The need for this physical evidence emanates from both the surprisingly large surplus of the global oil market in 2H18…as well the absence of a clear picture on the implementation of the cuts.”

Nevertheless, the supply picture is set to tighten significantly as we head into 2019. Many oil watchers see a somewhat balanced market in the first half of the year. Supplies could even tighten further if the Trump administration takes a hard line on Iran, with sanctions waivers set to expire in May.

The flip side is that the global economy is starting to show wider cracks. Oil fell quite a bit on Monday, dragged down by the broader gloom spreading over financial markets.

By Nick Cunningham of Oilprice.com

More Top Reads From Oilprice.com:

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Verizon’s 5G aspirations lead to over 10,000 voluntary resignations – Android Authority

Verizon logo

  • Approximately 10,400 Verizon employees voluntarily resigned from the company.
  • As many as 44,000 Verizon employees were offered exit packages.
  • Verizon announced a four-year, $10 billion cost-cutting program last year.

Even though Verizon’s eyes are set on its 5G-filled future, not all of its employees will get to see that future. Verizon announced approximately 10,400 of its employees voluntarily resigned as part of its “realigned organization structure.”

According to a prepared statement from Verizon CEO Hans Vestberg, the changes were “well-planned and anticipated.” Vestberg also insinuated that customers will not see any service interruption as a result of the resignations.

The 10,400 resignations represent 6.8 percent of Verizon’s workforce, which totaled 152,300 employees at the end of third quarter 2018. As many as 44,000 Verizon employees were offered exit packages.

Those that resigned did so through Verizon’s Voluntary Separation Program. The program offers up to 60 weeks’ salary, bonus, and benefits, depending on how long an employee worked for. Employees that voluntarily resigned were notified today of their last day on payroll and whether they were accepted into the program.

Based on “the needs of the business,” employees’ last day on payroll could be anywhere from the end of 2018 to the end of March 2019 or June 2019.

The realignment is a four-year, $10 billion cost-cutting program that also includes scaled-back media and advertising ambitions. Verizon shuttered its struggling Go90 digital media app in July partially due to a lack of viewership and advertiser deals.

The cost-cutting program should help Verizon retool for its 5G technology. Verizon announced it will release a Samsung 5G smartphone in the first half of 2019 and a 5G-capable hotspot at some point next year. The hotspot will feature the Snapdragon 855 chip and Snapdragon X50 5G modem.

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Trump administration hid report revealing Wells Fargo charged high fees to students – POLITICO




Wells Fargo

Wells Fargo is the second-largest provider of campus accounts with average annual fees of $46.99 per account. | Lisa Lake/Getty Images for Wells Fargo

The Trump administration for months concealed a report that showed Wells Fargo charged college students fees that were on average several times higher than some of its competitors.

The “unpublished” report was obtained by POLITICO through a Freedom of Information Act request. It was produced by the Consumer Financial Protection Bureau office previously led by Seth Frotman, who quit as the bureau’s top student loan official in protest of Trump administration policies. Frotman said in his resignation letter that CFPB leaders had “suppressed the publication” of the report.

Story Continued Below

The previously unseen analysis examined the fees associated with debit cards and other financial products provided by 14 companies through agreements with more than 500 colleges across the country.

Wells Fargo provided roughly one-quarter of those accounts but the bank collected more than half of all fees paid by students, according to the report data. The bank’s average annual fee per account was nearly $50, the highest of any provider.

The report raises questions about whether campus accounts with high fees comply with Education Department rules requiring colleges to make sure the products they help promote are “not inconsistent with the best financial interests” of their students.

The CFPB first warned in December 2016 that some financial products offered on college campuses may run afoul of those regulations. The latest report is a more in-depth analysis of the fees charged to students during the 2016-17 academic year, the first year that colleges were required to make that information public.

“Our analysis finds that most students at most colleges are able to use their college-sponsored account fee free,” the CFPB report says, but it notes that “certain account fees and providers still pose risks to student consumers.”

The CFPB did not include the analysis as part of its annual public report on campus financial products completed last year. But it did provide a copy to the head of the Education Department’s Office of Federal Student Aid in February, which means it’s been available for at least 10 months.

A spokesperson for the CFPB did not comment on why the bureau did not make the report public. “The Bureau shared this information directly with the Department of Education,” the spokesperson, who declined to be named, said in a statement.

The Education Department did not comment on whether it took any action based on the report, which it did not make public, either.

Rep. Bobby Scott (D-Va.), who is poised to become chairman of the House education committee, said earlier this year that the allegation that the CFPB had concealed the report on fees charged to students warranted an “immediate investigation” and called for congressional hearings.

The report found that more than 1.3 million students using college-sponsored debit cards or other products collectively paid $27.6 million in fees during the 2016-17 school year.

The largest provider of campus accounts was BankMobile, which is offered by Customers Bank and had annual average fees of $12.12 per account. PNC Bank, the third-largest provider, charged average annual fees of $15.84.

Wells Fargo was the second-largest provider with average annual fees of $46.99 per account.

Jim Seitz, a spokesperson for Wells Fargo, said the bank does not charge extra fees for its campus product but noted that “customers use their accounts in different ways.”

“For example, some campuses have higher concentrations of nontraditional or part-time students with more complex banking needs, such as sending wires or purchasing more checks,” he said in a statement. “Others may have high international populations that send and receive money to/from overseas.”

“Using the wide range of convenient tools and resources we offer can help customers to manage their account activity more effectively, and when possible, avoid incurring added costs,” he added.

The CFPB report also questioned the agreements under which financial services providers pay colleges to promote their products on campus. It found that students ended up paying three times more in average fees when their bank or account provider had paid the college.

Those arrangements, the report says, “raise questions about potential conflicts of interest, including whether revenue sharing encourages higher-fee financial products that crowd out competition from providers of accounts for which student accountholders would avoid high fees and/or accounts where all student accountholders overall would pay less in fees.”

Allied Progress, a liberal advocacy group that has been sharply critical of the Trump administration’s management of the CFPB, was among several groups that had been pushing the consumer bureau to release the report.

“This report shows Wells Fargo and other big banks that provide college-sponsored deposit and prepaid accounts are burying students with crippling fees and the Department of Education is doing nothing about it,” Karl Frisch, the group’s executive director, said in a statement. “No wonder Mulvaney’s CFPB tried to make sure it would never see the light of day. The actions by these banks and CFPB officials that sought to cover it up must be investigated by Congress.”

Mick Mulvaney, OMB director, has been the acting director of the bureau. The Senate last week confirmed Kathy Kraninger as the new director.

In a statement, Consumer Bankers Association President and CEO Richard Hunt said that “the more services – wire transfers, overdraft protections and the like – used by a customer of any age will result in increased annual costs. Each product and service carries a nominal fee – as the report notes – and is optional.”

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Alibaba Group takes majority control of loss-making movie unit Alibaba Pictures with $160M share purchase – TechCrunch

Alibaba Group announced today that it will increase its stake in Alibaba Pictures from 49% to 50.92%, making it the loss-making movie production company’s controlling shareholder. Under the agreement, Alibaba Pictures will issue one billion new shares, priced at HKD $1.25 each share for a total of HKD $1.25 billion (about $160 million), to Alibaba Group.

The announcement of Alibaba Group’s new share purchases comes the week after Alibaba Pictures chairman and chief executive officer Fan Luyuan took charge of Youku, Alibaba Group’s video streaming unit, after its former president Yang Weidong stepped down. Yang is currently under investigation as part of a police anti-corruption probe.

Now that it has majority control over the movie company, Alibaba Group said there will be more integration between Alibaba Pictures and its services, including Youku. In a press release, Fan said “Alibaba Pictures is excited to become a subsidiary of Alibaba Group. As an internet film and TV company, we can leverage the Group’s edge in big data technology and e-commerce and enhance cooperation with other Alibaba’s digital media and entertainment businesses such as Youku, Damai and Alibaba Literature.”

In his statement about the deal, Alibaba CEO Daniel Zhang said “the proposed share purchases is a vote of confidence in Alibaba Pictures, and we will continue to invest resources and take full advantage of our ecosystem to help Alibaba Pictures tap into the promising growth prospects of China’s film industry.”

Founded in 2014 to capitalize on China’s burgeoning movie market, expected to be the largest in the world soon, Alibaba Pictures has turned out to be a costly, money-burning venture. Despite doubling its revenue and posting its first profit in 2017, Alibaba Pictures’ losses also grew to $165 million in the same period. It’s misfortunes continued this year when its big-budget fantasy picture “Asura” became “the most expensive flop in Chinese history,” according to Variety.

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Three Sonic employees arrested for lacing kid’s meal with ecstasy – KTRK-TV

TAYLOR, Texas (KTRK) —

Three employees at a Sonic Drive-In were arrested after an ecstasy pill was found in a kid’s meal.

According to police, the 11-year-old sister was unwrapping 4-year-old brother’s hamburger and found the pill.

“When she opened the wrapping, she noticed a pill. Being an 11-year-old, she asked her parents if this was candy,” Taylor Chief of Police Henry Fluck said at a press conference.

The parents took the entire meal to the police station where a field test came back positive for ecstasy.

Officers arrested manager, 30-year-old Tanisha Dancer, along with two workers, 35-year-old Jonathan Roberson and 22-year-old Jose Molina.

Authorities said Dancer, who had an outstanding warrant for a parole violation, was found to have three more of the pills hidden in her clothing when corrections officers booked her at the Williamson County Jail.

She now faces felony charges of delivery of a controlled substance, possession of a controlled substance and endangering a child.

Police also arrested Roberson on the scene for having four outstanding warrants.

(Copyright ©2018 KTRK-TV. All Rights Reserved.)

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