Downtown condo market seeing rebound









Downtown Chicago's condo market is on the rebound after many moribund years, as sales volume and pricing improve in a market constrained by a lack of inventory.

It's a rare piece of good news for downtown condo owners as well as for developers pondering projects and trying to line up financing.

With a steady stream of apartment projects delivering in the next two years, the lack of new condo construction could signal opportunities for companies interested in pursuing smaller projects in key neighborhoods because the demand is there. Until those projects materialize, condo owners looking to sell face a better market than they have in several years.

Sales of existing downtown condos rose 31.2 percent last year, to 4,675 units sold, while the median sales price of $300,000 was a gain of about 2.6 percent from 2011, according to data from Appraisal Research Counselors.

Another piece of good news for current condo owners: Of the 65 downtown buildings studied by the firm, the average sales price per square foot of units sold during the second half of last year rose while the number of distressed condo sales in those buildings saw a substantial drop. Distressed sales, which accounted for  28 percent of sales since 2010, fell to 17 percent of sales during the second half of 2012.

In addition, only 1,104 newly constructed condo units remain unsold downtown.

"When we see more transactions occurring, that's a really good indication of demand," said Gail Lissner, a vice president at the firm. "The look of the condo market has changed in terms of unsold inventory."

Lissner's remarks came Tuesday during a lunchtime briefing on the local housing market.

Most of the unsold inventory, more than 500 units, is in the South Loop and the bulk of it is in the newly named and repositioned 500-unit South Loop Luxury by Related.

The three buildings, once called One Museum Park West, 1600 Museum Park and Museum Park Place 2 were taken over by New York-based Related Cos. in July have been renamed the Grant, Adler Place and Harbor View, respectively.


Since December, 40 units there are under contract, according to Related Midwest, which officially launched sales in the project Tuesday.

Other new projects reporting positive sales trends are Park Monroe Phase II, a 48-unit adaptive reuse project with 16 sales and CA3, a 40-unit building with 18 sales.

"These are all great indicators of strong sales," Lissner said. "Price stabilization has occurred in the market. You don't hear people talking about bottoming out. That was so yesterday."

mepodmolik@tribune.com | Twitter @mepodmolik



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No bail for suspects in Hadiya Pendleton slaying








Two suspects in the slaying of 15-year-old Hadiya Pendleton were ordered held without bond today.
Cook County Judge Israel Desierto ordered that Michael Ward, the alleged gunman, and Kenneth Williams, the alleged accomplice, remain in custody as they await trial.

Police say Ward, 18 and Williams, 20 were out for revenge from a previous shooting when they opened fire on a group of students in a South Side park Jan. 29 and hit Pendleton. Ward confessed to police that he and Williams mistook a Pendleton companion for rivals who had shot and wounded Williams last July, police and prosecutors say.

In court today, prosecutors disclosed that surveillance video captured the two as they fled in a white Nissan after the shooting. Police had identified Williams and Ward as occupants of the car "within approximately 10 minutes of the shooting," prosecutors said.

The two weren't arrested until this past weekend. Both made admissions to police about the shooting, with Ward telling detectives that Pendleton "had nothing to do with it. She was just there."

Williams told police he and Ward were driving around, looking for members of a rival gang, when they pulled up to the park. Ward got out and "snuck up on the group and they didn't see him coming," prosecutors quoted Ward as telling police. "Ward admitted he approached the fence and fired the gun six times. He ran back to the car and both defendants fled."

Ward told police that his gang and the rival gang "had been shooting at one another since 2010," and that one of Ward's friends have been killed by rival gang members. "It hurt, it hurt," he told police, according to prosecutors. "It hurt to a point where everyone had to go."

Detectives arrested the two Saturday night as the suspects were on their way to a suburban strip club to celebrate a friend's birthday, McCarthy said. Pendleton had been buried only hours earlier in a funeral attended by first lady Michelle Obama.
Williams did not confess and police have not recovered a weapon, McCarthy said.

McCarthy said that two days before the killing, police had stopped Ward in his Nissan Sentra as part of a routine gang investigation. That information wound up being the starting point for detectives when witnesses in the shooting described seeing a similar car driving away from the shooting scene, he said.

Through surveillance and interviews — including several fruitful interviews with parolees in the neighborhood — detectives were able to home in on Ward and Williams, McCarthy said. On Saturday night, the decision was made to stop the two if they were spotted. Police watched as they departed in a caravan of cars headed to the strip club in Harvey. They were stopped near 67th Street and South King Drive and taken in for questioning.

McCarthy said Williams was shot July 11 at 39th Street and South Lake Park Avenue, and an arrest was made. But that gunman was let go after Williams refused to cooperate, McCarthy said.

McCarthy also noted that at the time of Hadiya's slaying, Ward was on probation for a weapons conviction. McCarthy said weak Illinois gun laws allowed Ward to avoid jail time because of the absence of mandatory minimum sentences.

"This incident did not have to occur," McCarthy said. "And if mandatory minimums existed in the state of Illinois, Michael Ward would not have been on the street to commit this heinous act."


jmeisner@tribune.com


jgorner@tribune.com



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The New Old Age Blog: Debate Over Brain Scans and Alzheimer's

Should brain scans for older adults with suspected Alzheimer’s disease be covered by Medicare?

Many medical experts say yes. But late last month, an expert panel convened by the Centers for Medicare and Medicaid Services concluded that data supporting use of the scans was weak.

Specifically, the panel noted there is no solid evidence that these imaging tests have a meaningful impact on patients’ health; studies that might establish this have not yet been done.

This controversy deserves attention because positron emission tomography, known as PET scans, are becoming available across the country, and proposed guidelines for their use have just been published by the Alzheimer’s Association and the Society of Nuclear Medicine and Molecular Imaging.

Currently, Medicare does not pay for the tests, which cost about $3,000 — an amount that puts them out of reach for many families. The expert panel’s findings will be used by the government later this year to determine whether Medicare should change this policy.

Nearly 400 medical centers already offer this technology or are preparing to do so, according to Eli Lilly, which makes a radioactive agent used in the scans. That agent binds to protein clusters known as amyloid plaques that are a signature characteristic of Alzheimer’s disease, making it possible to see them for the first time in the brains of living patients.

The Medicare panel confronted the question: “How useful is this information, for which patients and under what conditions?” Several experts who testified in late January suggested that the PET imaging tests could help physicians diagnose Alzheimer’s disease or other types of dementia. Currently, diagnosis proceeds from a comprehensive medical evaluation, a careful patient history, and typically, a round of neuropsychiatric tests.

“Should I tell my patients that we have a test available to help clarify their diagnosis but we can’t use it because Medicare doesn’t cover it?” asked Dr. Stephen Salloway, a professor of neurology at the Warren Alpert Medical School at Brown University.

If scans show a lack of amyloid plaques, the “worried well” could be reassured that they don’t have Alzheimer’s and doctors could pursue other lines of medical inquiry, like investigating the potential for thyroid problems, depression or vitamin B12 deficiency, said Dr. Paul Aisen, a professor of neuroscience at the University of California, San Diego, School of Medicine.

If the tests are positive, they could rule out conditions like frontotemporal dementia and motivate patients to start taking medications for Alzheimer’s, enroll in clinical trials and get their financial, legal and household affairs in order, other experts said.

But while amyloid plaques are closely associated with Alzheimer’s, their role has not yet been definitively established. They could be a cause of this condition, a byproduct or serve another function not yet understood. Underscoring this is a notable research finding: about 30 percent of older adults with no symptoms of dementia have been found to have amyloid plaque buildup in their brains.

That means the brain scans cannot ensure the accurate diagnosis of Alzheimer’s. “I see a big potential for overuse and misuse,” warned Dr. Raymond Faught, Jr., a member of the Medicare advisory panel and a professor of neurology at Emory University in Atlanta.

Given that large caveat, the question emerges of which patients would benefit most from getting the tests.

The Alzheimer’s Association and the Society of Nuclear Medicine and Molecular Imaging tried to address that in their recently published “appropriate use” guidelines. The guidelines, which have no binding force, suggest that scans should be considered for patients with Alzheimer’s-type symptoms but “an unclear clinical presentation”; those who develop dementia symptoms before age 65; and those with “persistent” mild cognitive impairment, a condition that often precedes Alzheimer’s.

Tests should not be given to “normal” patients or those who have Alzheimer’s disease already, they say. In other words, if you’re getting older, have mild memory loss, but are still functioning well, you’re not a candidate. Nor is there any value in giving the tests to people who are already deep in the throes of dementia.

The recommendations assume that there is value in knowing test results for physicians, patients and families; that physicians will be better able to manage patients’ care as a consequence; and that doctors will order fewer diagnostic tests or more appropriate tests once they have findings from amyloid PET imaging in hand.

But those assumptions are not backed up by solid evidence yet. Medications for patients with Alzheimer’s have a modest impact on symptoms for a limited period of time and no impact on the underlying illness. Given this, “the clinical utility of a diagnostic test to alter patient management and result in a quantifiable benefit is very difficult to establish,” the panel writes in the journal Alzheimer’s & Dementia. Also, they note, “data supporting specific outcomes for amyloid PET are not yet available.”

This lack of data was the reason the Medicare panel gave amyloid brain imaging such low marks late last month. Dr. Rita Redberg, chairwoman of the Medicare Evidence Development and Coverage Advisory Committee and a professor of medicine at the University of California, San Francisco, summed up that group’s deliberations this way:

We were there to evaluate the impact of this test on patient outcomes. But all of the speakers said there wasn’t any data linking amyloid scans to outcomes . . . They presented evidence that the test is very good at identifying amyloid, but they did not present evidence that it was very good at identifying the clinical presence of Alzheimer’s disease.

Wei-Li Shao, senior director of the Alzheimer’s business division of Eli Lilly, which stands to benefit from the greater use of the scans, disagreed, saying, “Lilly remains steadfast and resolved in its belief that amyloid imaging provides significant clinical value for clinicians and patients.” The company will work with Medicare going forward to try to secure coverage, he said.

For Dr. Redberg, the essential question is this: “Would you want to know you have an increased chance of getting a disease in (the future) when there are no effective treatments available and you might not even get it in the end? Is that of benefit to patients?”

What do you think, readers?

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Chicago leads nation in gas-price spikes









Drivers in Chicago are seeing a painful rise in gas prices get even worse this month.

The average price of regular unleaded in the Chicago metro area on Tuesday is $3.93, according to AAA. That's up 12 cents from a week ago. A month ago, the average was $3.42. Statewide, the average is about $3.79, up 8 cents from last week and 46 cents last month.

Prices are rising at pumps across the country, too, but not as dramatically. The national average is $3.60, up about 7 cents from a week ago and 30 cents higher than this time last month.

It's not typical to see gas price spikes at this time of year. Demand is typically low and picks up in the spring before driving season. And in general, gas is cheaper to produce in the winter because refineries can use less expensive blends.

The main reason for the spike is the higher price of crude oil. The price of oil has gone from around $85 a barrel in December to around $97 now because of improving economic certainty as the country moved past the election and the fiscal cliff deadline, according to energy analyst Phil Flynn. It's also being driven by better-than-expected growth in China, the world's second largest economy.

Prices in the Chicago area are typically some the highest in the nation, but the cost of a local fill-up is accelerating at almost double the national rate.

Flynn attributes this to a number of refinery issues in the region. Some scheduled maintenance at refineries -- where gasoline and other products are produced from oil -- occurred earlier than usual, which cut off some supply, affecting prices. Many close at this time of year to start the switchover to lower-emission summer blends of gasoline.

Besides a major overhaul of BP's Whiting refinery, the largest supplier of gasoline to Midwest markets, that's believed to be driving prices higher, a fire temporarily shut down a refinery in northwest Ohio.

AAA, which tracks daily gasoline prices around the country, predicts they will continue their rapid climb as local refinery issues continue into the beginning of peak driving season.

Flynn is more optimistic.

He believes that once the major Whiting refinery overhaul is complete later this year, gas prices will stabilize.

"I'm probably in the minority but I think we are starting to see some light at the end of the tunnel," he said.

sbomkamp@tribune.com | Twitter: @SamWillTravel



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Charges in Hadiya Pendleton slaying could come soon: McCarthy









Charges against two people being questioned in the shooting death of 15-year-old Hadiya Pendleton could come this evening, Chicago Police Superintendent Garry McCarthy said.

"We will bring this all to closure, probably sometime this evening we're anticipating hopefully that we'll have charges," McCarthy said at a news conference with Mayor Rahm Emanuel and Cook County State's Attorney Anita Alvarez to announce a push for stiffer state prison terms for people convicted of gun crimes.






McCarthy declined to provide more specifics, saying the investigation is ongoing.

"We're still doing lineups. We're still crossing some t's and dotting some i's that we need to do before we can get charges approved for these individuals," he said.

Chicago police on Sunday were questioning two persons of interest in Hadiya's slaying, according to law enforcement sources. On Saturday, first lady Michelle Obama attended the funeral for the teenager whose death has become a symbol of escalating violence in Chicago.

The suspects, are 18 and 20 year old men who were pulled over near East 67th Street and South Chicago Avenue late Saturday night or early Sunday morning after detectives canvassed the area of the park where she was shot and killed Jan. 29 and tracked down witnesses, the sources said. No charges have been filed.

Hadiya was fatally shot in Vivian Gordon Harsh Park, about a mile north of President Barack Obama's Kenwood neighborhood home on the South Side, a little more than a week after the honor student performed with the King College Prep band in Washington during inauguration festivities. Two other teens were wounded.

The shooting in the 4400 block of South Oakenwald Avenue happened after classes were dismissed for the day during finals week at King. Hadiya, a sophomore at King, was at the park with a group of teens, primarily other students from the school, when a male gunman climbed over a fence, ran to the group and started firing, police have said. The shooter escaped in what has been described as a white Nissan vehicle, possibly driven by a getaway driver.

One of the sources said at least one of the men brought into custody was riding in a Nissan Sentra, one of the two vehicles police pulled over when bringing the pair into custody. The source didn't know that Nissan's color.

Police have insisted that the teens in Hadiya's group who had gathered in the park were not involved in gangs. But police have been looking into whether the gunman may have mistaken them for rival gang members.

While police and neighbors have generally described Harsh Park and its immediate surroundings as safe, there has been an internal gang conflict brewing in the area between factions of the Gangster Disciples, police said. The two men being questioned Sunday are alleged members of the Gangster Disciples, sources said.

One of the two men has a previous weapons conviction, according to court records.

In addition to Hadiya's homicide, there have been at least three other shootings within blocks of Harsh Park so far this year, according to police records.

No charges have been filed against the men, who are being held at Area Central police headquarters on the South Side.

Mayor Rahm Emanuel personally called Hadiya's parents, Cleopatra Cowley-Pendleton and Nathaniel Pendleton, to inform them of the development, according to a source. Nathaniel Pendleton told the Tribune on Sunday night that he didn't want to say too much about the men being questioned because charges have not been filed.

“Right now, we're just happy that Chicago police have some leads and things are moving,” he said.

Shatira Wilks, a cousin of Hadiya's and a family spokesperson, said the development is a “good response” and better news than the family had Saturday.

Arrests and charges “will bring a small level of closure to the family, although (the shooter) still will be allowed to eat, drink, mingle,” Wilks said. “The thing about that is, Hadiya is no longer (able) to do so.”

On how Hadiya's family is doing, Wilks said, “Everyone keeps asking that. I don't know if you'll ever get an answer that we're feeling good or we're feeling fine.”

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Famous film couple back 9 years on in “Before Midnight”






BERLIN (Reuters) – Ethan Hawke and Julie Delpy reprise the roles of Jesse and Celine in “Before Midnight”, the third but not necessarily the last movie in their long-running series based on the same characters as they age over time.


In this film, set 18 years after “Before Sunrise”, the couple is on holiday in Greece and we learn that they live with their twin daughters in Paris while Jesse’s son has stayed with his mother in Chicago.






Screening at the Berlin film festival on Monday, “Before Midnight” examines how life’s twists have taken their toll on the American tourist and French student who met on a train bound for Vienna in 1995 and again in Paris nine years later in “Before Sunset”.


They still love each other but this time they are older, heavier, and bicker more, and the forces pulling Jesse back towards his teenage son and Celine’s determination to pursue her career in France test that bond to its limits.


Director Richard Linklater, on board throughout the series, underlined the organic nature of the “Before…” films when he was asked whether there might be a fourth installment, presumably sometime around 2022.


“The fact that we’ve made two sequels, I guess it begs the question, but I think I speak for the group here, I’m sure we have absolutely no idea what that (sequel) could possibly be,” he told reporters at the 11-day film festival.


“We probably won’t for another six years. Who knows the future?”


French actress Delpy joked that the final film in the series would be a remake of Michael Haneke’s Oscar-nominated drama “Amour”, about an elderly couple aged in their 80s facing the inevitability of imminent death.


“STIFLING” EXPECTATIONS


Critical reaction to “Before Midnight” has been mixed.


In its review, the Guardian newspaper said the movie felt forced, but The Hollywood Reporter wrote: “Though this stage is harder to watch, audiences who have aged along with Celine and Jesse will treasure this new episode.”


Hawke said he, Delpy and Linklater, who jointly developed the script over two years, felt the weight of expectation as they embarked on the third part of a story which many viewers identified with so closely.


“I haven’t met a director in the last nine years that didn’t tell me what he or she thought the third film should be. So we knew we were up against a lot of people having an agenda about where Jesse and Celine should be. That agenda is stifling.”


“Before Midnight” consists of a handful of long, single-shot scenes focusing on the couple as they navigate a life complicated by broken families, work pressures and the familiarity of living together.


In the first scene Jesse sees his son off at the airport in an awkward exchange that underlines how the two have grown apart. In the next Jesse and Celine discuss children, work and their relationship in frank and often funny exchanges.


At one point Celine says men measure themselves against leading figures from history. When Jesse counters that women do too, he mentions Joan of Arc.


“She was burned at the stake and was a virgin,” jokes Celine. “Who wants to be Joan of Arc?”


As the film goes on, banter becomes bickering, then descends into a blazing row. Linklater stressed that the dialogue may seem off-the-cuff but it required a lot of hard work.


“It feels improvised. It’s not,” he said. “It’s meticulously rehearsed and structured.”


(Reporting by Mike Collett-White; Editing by Belinda Goldsmith)


Movies News Headlines – Yahoo! News





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Dozens of airline fees rose, changed in 2012









Airline travel fees — including charges to check a bag and to board early — have become so prevalent that travelers almost need an advanced degree in mathematics to calculate overall trip costs.


Last year at least 36 airline fees increased, and 16 others were redefined, bundled or unbundled with other services, according to a recent study by the consumer travel website Travelnerd.


One bright spot in the Travelnerd study of 14 U.S. airlines is that most fee increases were only $5 to $10 each.





In one case an airline had a big fee reduction. The study found that United Airlines reduced its fee for checking an overweight bag to $100 from $200 for bags 50 to 70 pounds and to $200 from $400 for bags 71 to 100 pounds.


"Travelers really have to be extra cautious when booking a flight," said Alicia Jao, vice president of travel media at Travelnerd, who predicts travelers will see even more fees in 2013. "U.S. carriers are becoming creative at charging consumers extra fees."


But some airlines seem to charge fees arbitrarily, said Perach Mazol, a Los Angeles resident who recently flew to Florida with friends from Romania to take a cruise.


On her flight from L.A. to Fort Lauderdale, Fla., on Spirit Airlines, she said the Florida airline did not charge for the carry-on bags she and her friends were carrying, but the carrier asked for $50 each to carry the same bags on the flight back. (Spirit is one of only two airlines in the U.S. that charge passengers for carry-on luggage.)


"I don't understand why they charged us on one flight and they don't on the other," Mazol said. "It's confusing."


A spokeswoman for Spirit said the airline tries to enforce its policies consistently.


"Maybe she got lucky one way and didn't have to pay," Spirit spokeswoman Misty Pinson said.


United offering satellite-based Wi-Fi


United Airlines was one of the last major airlines to offer onboard wireless Internet. But the Chicago carrier is trying to make up for its tardiness.


United offers Wi-Fi in about 3% of its fleet of about 700 planes, one of the lowest rates of any major carrier in the nation, according to a recent study.


But United recently became the first U.S.-based international carrier to offer satellite-based Wi-Fi Internet for passengers traveling on long-haul overseas flights.


The carrier has installed satellite-based Wi-Fi on nearly a dozen planes, with plans to expand the service to more than 300 planes, or about 43% of the fleet, by the end of the year.


"With this new service, we continue to build the airline that customers want to fly," said Jim Compton, vice chairman and chief revenue officer at United.


Satellite-based Wi-Fi is typically as fast as ground-based Wi-Fi, experts say, but the advantage is that it can give passengers Internet access when flying over areas where cellular towers don't exist — such as the Pacific or Atlantic oceans.


But, of course, there is a price to pay for the service.


United is charging $3.99 to $14.99 for standard speed, depending on the duration of the flight, and $5.99 to $19.99 for faster speeds.


United is not the only airline to offer satellite-based Wi-Fi. Southwest Airlines, the nation's largest domestic carrier, offers it through Westlake Village-based Row 44.


Delta to raise fee to access lounges


Airline fees are rising not only for onboard services but for amenities at the airport too.


Delta Air Lines, which has invested more than $20 million in its airport lounges over the last two years, announced that it would raise the cost for annual membership to access its lounges across the country by $50, starting March 1.


The increase means that an annual membership will range from $350 to $450, depending on membership level. (The more miles passengers fly on Delta the less they pay for membership.)


Among the investments Delta has made is the addition of a new luxury bar that opened recently at Delta's lounge at Los Angeles International Airport. Instead of helping themselves at a self-serve bar, members can now belly up to a fully stocked bar and order a drink from a bartender.


hugo.martin@latimes.com





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Woman killed when 2 cars collide on Tri-State













Photo: Scene of crash


Photo: Scene of crash
(February 10, 2013)


























































Danielle M. Pisterzi hoped to graduate from Northern Illinois University this year with an accounting degree, but first she needed to complete an internship at a firm.

Her family believes Pisterzi, 21, was returning to her home on the Northwest Side late Saturday night from her job when she collided with an SUV near Willow Road on the Tri-State Tollway.

Pisterzi had been working long hours because the firm was busy with the tax season, her father Frank Pisterzi said. "She was my baby," he said.

Danielle Pisterzi was driving a 2004 Hyundai when she struck an Audi SUV carrying four people around 10:45 a.m., state police said. people inside, police said. Pisterzi was taken to Advocate Lutheran General Hospital, where she was pronounced dead at 11:52 p.m.

Police told the woman's family that her car also struck a wall before the car flipped on its roof. No one else was taken to the hospital, police said.

After having spent semesters in Dekalb, Pisterzi was back home living with her family in the 5700 block of North Nina Avenue where she grew up, her father said.

Pisterzi said his daughter knew what she meant to her family. "I was pretty fortunate, I told her everyday that I loved her," her father said.

chicagobreaking@tribune.com


Twitter: @ChicagoBreaking






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The fine line between legitimate businesses and pyramid schemes









Controversy is again casting a shadow over the multilevel marketing industry, as nutritional supplement company Herbalife Inc., which has thousands of distributors in the Chicago region, has been publicly called a pyramid scheme by a prominent investor — an allegation the company vigorously denies.


Meanwhile, a different multilevel marketer, Fortune Hi-Tech Marketing, was shut down in recent weeks after a lawsuit was brought by regulators and several states, including Illinois, alleging the company scammed consumers out of $169 million. The scheme affected an estimated 100,000 Americans, including some in Chicago, where it targeted Spanish-speaking consumers, the Federal Trade Commission alleged.


Most people outside the industry might have only a vague notion about multilevel marketing, also called network marketing and direct selling. It often involves personal sales of cosmetics, wellness products or home decor items — or as critics flippantly call it, "pills, potions and lotions" — usually sold through product parties hosted by friends or relatives.





For sellers, the companies offer the appeal of starting a business on the cheap with little training, working from home and being their own boss, if only for part-time money. Some might recruit friends and family to become sellers, which augments their own commissions and gives them a shot at the six-figure compensation many such marketing companies tout but few distributors attain.


The largest multilevel marketing companies, often known as MLMs, are household names: Avon, Mary Kay, Pampered Chef and Amway. MLMs have annual sales of about $30 billion, with about 16 million people in the United States selling their products, according to the industry group Direct Selling Association, which represents these firms and others.


The recent controversies might raise the question: What's the difference between a legitimate multilevel marketing company and an illegal pyramid scheme, in which only people who get in first — at the top of the pyramid-like structure — make money and everyone else is a dupe?


The harshest critics maintain there is no difference, that there's no such thing as a legitimate MLM and that the industry's secrets stay safe because of a cultlike mentality and a blind eye of regulators.


Jon M. Taylor, who was once a seller for an MLM company, said he has studied the industry for 18 years and analyzed more than 500 MLM companies. He maintains the website MLM-thetruth.com and offers a free e-book there.


"I have not yet found a good MLM — a good MLM is an oxymoron," Taylor said.


He said all MLM companies have the same flaw: They depend on endless chains of recruiting new members.  "There is no more unfair and deceptive practice than multilevel marketing," Taylor said.


Tracy Coenen, a forensic accountant and fraud investigator with Sequence Inc. in Chicago and Milwaukee, is author of the Fraud Files Blog. She is also a critic.


"Multilevel marketing companies are pyramid schemes that the government allows to operate," said Coenen. "The only difference is that Herbalife, or any multilevel marketing company, has a tangible product that they use to make their pyramid appear legitimate."


The Direct Selling Association says MLMs are legitimate businesses, and that the group has about 200 members carefully screened by the organization to ensure they are not pyramid schemes and don't use deceptive practices.


The Federal Trade Commission agrees there are legitimate MLMs. The difference between a legitimate business and pyramid scheme comes down to products.


If the company and its distributors make money primarily from the sale of products to end-users (and not boxes of product accumulating in a distributor's garage), it's OK.


By contrast, a pyramid scheme compensates those at the top of the pyramid with participation fees paid by those recruited at the bottom. It eventually collapses when the scheme can't recruit more people.


But identifying a pyramid scheme can be difficult because MLMs typically have product sales, along with recruitment fees and recruitment incentives.


"It gets cloudy when you have a situation where you have fees being paid for both," said Monica Vaca, assistant director of the FTC's division of marketing practices. "It's very nuanced."


While prosecuting an MLM can seem somewhat of a judgment call, cases have a common factor: deceptive promises about how much money distributors will earn, Vaca said.


In the Fortune Hi-Tech Marketing case filed last month, C. Steven Baker, director of the FTC's Midwest region, said, "These defendants were promising people that if they worked hard they could make lots of money. But it was a rigged game, and the vast majority of people lost money."





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Hadiya Pendleton funeral: 'God is our refuge'









The funeral of slain teen Hadiya Pendleton began today amid large crowds, long lines and heavy security prompted by the attendance of first lady Michelle Obama.

While family and friends kept the focus on the 15-year-old girl who was shot dead in a South Side park, the first lady's appearance inevitably brought attention to anti-gun efforts nationwide.


Hadiya's pastor, Courtney C. Maxwell from the Greater Deliverance Temple Church of Christ, opened the services about 11:15 a.m. after a heart-shaped balloon was placed near her casket.
 
He thanked everyone for being at the Greater Harvest Baptist Church, including elected officials. “The family says thank you and God bless you.’’ He asked for round of applause for the Pendleton family.
 
“Only God can keep you and strengthen you, for God is our refuge and our strength,’’ the pastor said. 


The pastor said Hadiya was “genuine and real.’’

“She was energetic, loved music, loved the arts,’’ the pastor said.

After the pastor spoke, a female reverend dressed in white addressed the crowd and a choir behind her began singing.

“Blessed are they that mourn, for they shall be comforted,’’ she said, as the choir sang after her.

Another man, who identified himself as an assistant pastor of the Life Center church, read from scriptures.

“She is more precious than rubies. … Her ways are of pleasantness,’’ he said.








About 11:30 a.m., Pastor Elder Eric Thomas of the host Greater Harvest Baptist Church spoke to the mourners and described Hadiya as a “beloved angel.’’
 
“Her life has not been in vain,’’ Thomas said.
 
A female singer and organist the played a religious song, as about 30 others in the choir, all dress in white, stood and swayed gently from side to side before the large cross that was draped in white.


Kenya Edwards, who identified herself as a radio personality and a friend, read a poem called “Walking,’’ which was written for Hadiya by Zora Howard.

Afterwards, Edwards said: “Ladies and gentlemen, it’s time for us to start walking. It’s time to take a stand.’’

Then two girls who appeared to be Hadiya's classmates and friends performed a poem they wrote for her, which began by comparing violence in Chicago to that of Iraq.
 
The girls then took turns to speak each part of the poem: “Dear Hadiya. I wish you were still here with me. That smile … that you smile so confidentially.’’

They also spoke to the killer: “Know that you killed an innocent person."

It ended when they both said: “We’re sorry Hadiya. We miss you,’’ and sat down to applause.


A woman then spoke on behalf of Barbara Bird Bennett, Chicago Public Schools CEO who was kept form the service due to a family emergency.
 
She described Hadiya as a strong, talented and ambitious young woman, whose memory would live on.

“Hadiya was a terrific student. She cared about her community,’’ she said.

“My heart gets broken’’ everytime another student is killed, she said, calling them “our precious children. I refuse to tolerate the violence that plagues our communities and has taken away the lives of too many children."

“I know there’s nothing I can say that can ease the pain of [Hadiya's parents] Cleopatra and Nathaniel,’’ but “I will be inspired by Hadiya every day … as I walk through the halls,’’ she said.


A woman who identified herself as Hadiya’s aunt then spoke, asking, “What was inside Hadiya that connected her to those who didn’t know her?”

“It was her inner light’’ that connected her with humanity’s inner light, she said. “Light has power and has potent force,’’ and can cause "mankind to feel an inner awakening and a sense of love.’’

“Light can pursue darkness ... it diffuses darkness,’’
her aunt said. "Hadiya. The light.’’

Father Michael Pfleger was introduced and called Hadiya an "innocent victim of gun violence,’’ asking,  “When did we lose our soul?”

He told crowd that “we must become like Jesus’’ and become “the interrupters’’ of genocide, and evil that is killing our children.
 
“Welcome home, sweet Hadiya. See you on the other side," he said.

Damon Stewart, Hadiya's godfather, then said, “I’m going to speak as if we’re family,’’ adding that he had “two spiritual thoughts’’ he wanted to stress.

“God makes no mistakes,’’ he said. “I don’t believe in coincidence; I believe in divine intervention.’’

Wearing a black suit and black shirt, he also wore purple in honor of Hadiya -- a purple tie and ribbon on his chest, and a purple handkerchief in chest pocket.
 
“I loved that child,’’ he said.

Hundreds of mourners had lined up early to pay respects to Hadiya, who was a majorette for King College Prep's band and performed during President Barack Obama's inauguration festivities just days before she was slain, shot in the back while hanging out with friends at a North Kenwood neighborhood park.

Thirty minutes before the doors were set to open, hundreds stood waiting in line amid heavy security to get into Greater Harvest Baptist Church in the Washington Park neighborhood, about two miles from where the 15-year-old girl was gunned down last month. Among the groups of high school-age students waiting in the line was the King College Prep majorettes team, who came together in their yellow and black majorette coats.

Guests who were invited by the family were given orange wristbands and were able to enter through a shorter security line. Classmates and friends of Pendleton were given green wristbands and allowed to enter through that same line.

Trinity Dishmon, 40, said her daughter Deja, 15, and Hadiya were close friends in middle school. The two girls stayed in touch and were texting about their upcoming 16th birthdays while Hadiya was in D.C. for the president's inauguration in January.

"Hadiya was a gift to everyone that knew her," Dishmon said, tearing up. "These last 12 days have been unbelievably numbing. It's not six degrees of separation anymore, it's one. It's just unreal."

Dishmon said she feared that the day was less about the teenager and more about a larger issue.

"This is Hadiya's day and should be about her -- not something sensational," Dishmon said. "But maybe by honoring her life we can help make a difference."

Inside the church, Hadiya’s silver casket was placed in the front, surrounded by flowers and two large hearts, one with her picture on it. Behind the casket, a TV screen showed pictures of Hadiya with her family, from birth to her teenage years.

At 9:09 a.m., friends, students and others with wristbands were allowed to file down the aisle to view the body. Her young friends were seated in the front pews, directly behind the casket. Her classmates and friends filled the middle section of the church — 11 rows in all. Members of the Crystal Elegance Majorette squad held on to each other as they filed down the aisle in pairs to view the body.

A funeral director wearing a suit and white gloves came outside at 9:40 a.m. to announce to the hundreds still waiting in line that the church was “at capacity.” Those still in line could come in and view the body, he said, but would have to leave before the services.

The funeral procession arrived at about 9:45 a.m., including three limousines and dozens of cars.

The first lady’s motorcade pulled into the church parking lot at about 10:15 a.m. She went in through a separate side entrance at the rear of the church, stepping directly from a vehicle into the building.

At about the same time, the funeral director came back out and announced to the hundreds still waiting in line that no one else would be allowed inside — not for the viewing or the funeral.


The family filed down the aisle a little after 10 a.m. and viewed the body in the still open casket. The pastor led the procession down the aisle chanting "the Lord is my shepherd" as soft organ music played in the background.

Ushers walked down the aisle handing out tissues, and those without wristbands were asked to give up their seats so that family members could be seated in the sanctuary. Every seat was filled by 9:45 a.m.

Purple, Hadiya’s favorite color, is represented in many of the flowers in the church and the lining of her casket. Ushers handed out a glossy funeral program booklet printed on purple paper. The front cover says "Celebrating The Life Of ... Hadiya Zaymara Pendleton.” Inside are more than 50 photos of Hadiya throughout her life.
 
Her obituary printed in the booklet describes her work in the church and even her favorite foods: Chinese, cheeseburgers, ice cream and Fig Newtons. It includes tributes from her grandmother, her cousin and an aunt as well as close friends. According to the program, the speakers are to include Illinois Secretary of State Jesse White.
 
The back of the program has a copy of a handwritten note from President Barack Obama: "Dear Cleopatra and Nathaniel, Michelle and I just wanted you to know how heartbroken we are to have heard about Hadiya's passing. We know that no words from us can soothe the pain, but rest assured that we are praying for you, and that we will continue to work as hard as we can to end this senseless violence. God Bless.”

Gov. Pat Quinn entered from the upstairs balcony, went up to greet the family and then stood for a brief moment over the casket, looking at Hadiyah.

Other dignitaries entering the church were Ill. Attorney General Lisa Madigan and Rev. Michael Pfleger, a longtime community activist on the South Side and pastor of St. Sabina Catholic Church in Chicago. Rev. Jesse Jackson stood at the front near the casket with members of the family for a while and then took a seat in the audience behind the family. 


Prior to the service, the first lady met privately with about 30 of Hadiya's friends and classmates, and then with members of Hadiya's family, according to a White House official.


Just before the funeral began, the first lady, Mayor Rahm Emanuel and Cook County Board President Toni Preckwinkle could be seen seated near one another other and near the casket. Colorful bouquets of flowers were placed near the casket.

Michelle Obama, wearing dark blue, was then seen standing, comforting someone, possibly the pastor.


Even after those outside were told they would not be allowed in, many continued to gather around the church's front gate.

Some began to file out, having to hop over the metal barricades to exit the long line.

One man asked the funeral staff member if he could at least have a pamphlet from the funeral before he left.

"Oh sir, those are long gone. They only printed 1,500," the funeral staff member said.

Activists, religious groups and others passed out printed material to those standing in line. Some kept the papers, others were left on the snowy ground as the crowds left.

Michelle Obama's attendance puts Chicago solidly in the middle of a national debate over gun violence that has polarized Congress and forced President Obama to take his gun control initiatives on the road to garner more public support.

The first lady's visit is being seen not only as a gesture of condolence to the family but as part of an effort to draw attention and support for the president's gun initiatives.

But the visit also meant scores of security, police and Secret Service agents, metal detectors and other security measures.

Other dignitaries expected to attend the funeral included Secretary of Education Arne Duncan and Valerie Jarrett, senior adviser to Barack Obama.

The church is surrounded by an iron fence and all of the openings -- a pedestrian gate in the front, front and side doors to the church, and a driveway to the north -- are guarded by city police or men in white shirts, ties and long black coats. Chicago police vehicles -- two wagons, a handful of squads and SUVs -- guarded the outside of the church while other vehicles circle the block.

Chicago police staffing the event are wearing dress blues -- a blue overcoat with pockets that allow access to the duty belt, creased navy pants, and a hat.

King College Prep math and engineering teacher Alonzo Hoskins stood quietly in line with others. He said he taught Hadiya in his first-period geometry class, where he now has an empty desk.

"She was full of life," Hoskins said.

Hoskins looked at the sea of people that preceded him in line. "I want to support the family. For me, this isn't about the dignitaries," Hoskins said.

"But I don't know if I'll even get in."

Some waiting in line for the funeral said they didn't know the Pendletons personally but felt some connection to the teenager's death.

Earl Worthington, 51, said his mother was an elementary school teacher in Chicago and would have embraced a driven young student like Hadiya.

“She's the type of girl my mother would have produced in her class,” Worthington said. “I feel a connection to Hadiya's death through my mother. I feel my mother is with her right now in heaven.”

Nate Weathers, 16,  Jeramy Brown, 16, and Antoine Fuller, 15, all stood in line to see their former classmate. The three young men said they attended Carter G. Woodson Middle School with Hadiya.

“This tears me up,” Fuller said. “She was my 7th grade crush.”

Brown described Hadiya as “sweet and innocent.”

“Something like this should have never happened to her,” Brown said.

Police took two men into custody after they got into an altercation near the back of the long line of mourners waiting to get into the church. One man was agitated, complaining about the long wait to get in. A second man confronted him and they began shoving each other before police intervened.


Local and national pool reports contributed.

chicagobreaking@tribune.com


Twitter: @chicagobreaking 



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