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  • Exclusive: Chinese hackers attacked Kenyan government as debt strains grew

    Exclusive: Chinese hackers attacked Kenyan government as debt strains grew

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    • Cyber spies infiltrated Kenyan networks from 2019
    • Hit finance ministry, president’s office, spy agency and others
    • Sources believe Beijing was seeking info on debt

    NAIROBI, May 24 (Reuters) – Chinese hackers targeted Kenya’s government in a widespread, years-long series of digital intrusions against key ministries and state institutions, according to three sources, cybersecurity research reports and Reuters’ own analysis of technical data related to the hackings.

    Two of the sources assessed the hacks to be aimed, at least in part, at gaining information on debt owed to Beijing by the East African nation: Kenya is a strategic link in the Belt and Road Initiative – President Xi Jinping’s plan for a global infrastructure network.

    “Further compromises may occur as the requirement for understanding upcoming repayment strategies becomes needed,” a July 2021 research report written by a defence contractor for private clients stated.

    China’s foreign ministry said it was “not aware” of any such hacking, while China’s embassy in Britain called the accusations “baseless”, adding that Beijing opposes and combats “cyberattacks and theft in all their forms.”

    China’s influence in Africa has grown rapidly over the past two decades. But, like several African nations, Kenya’s finances are being strained by the growing cost of servicing external debt – much of it owed to China.

    The hacking campaign demonstrates China’s willingness to leverage its espionage capabilities to monitor and protect economic and strategic interests abroad, two of the sources said.

    The hacks constitute a three-year campaign that targeted eight of Kenya’s ministries and government departments, including the presidential office, according to an intelligence analyst in the region. The analyst also shared with Reuters research documents that included the timeline of attacks, the targets, and provided some technical data relating to the compromise of a server used exclusively by Kenya’s main spy agency.

    A Kenyan cybersecurity expert described similar hacking activity against the foreign and finance ministries. All three of the sources asked not to be named due to the sensitive nature of their work.

    “Your allegation of hacking attempts by Chinese Government entities is not unique,” Kenya’s presidential office said, adding the government had been targeted by “frequent infiltration attempts” from Chinese, American and European hackers.

    “As far as we are concerned, none of the attempts were successful,” it said.

    It did not provide further details nor respond to follow-up questions.

    A spokesperson for the Chinese embassy in Britain said China is against “irresponsible moves that use topics like cybersecurity to sow discord in the relations between China and other developing countries”.

    “China attaches great importance to Africa’s debt issue and works intensively to help Africa cope with it,” the spokesperson added.

    THE HACKS

    Between 2000 and 2020, China committed nearly $160 billion in loans to African countries, according to a comprehensive database on Chinese lending hosted by Boston University, much of it for large-scale infrastructure projects.

    Kenya used over $9 billion in Chinese loans to fund an aggressive push to build or upgrade railways, ports and highways.

    Beijing became the country’s largest bilateral creditor and gained a firm foothold in the most important East African consumer market and a vital logistical hub on Africa’s Indian Ocean coast.

    By late 2019, however, when the Kenyan cybersecurity expert told Reuters he was brought in by Kenyan authorities to assess a hack of a government-wide network, Chinese lending was drying up. And Kenya’s financial strains were showing.

    The breach reviewed by the Kenyan cybersecurity expert and attributed to China began with a “spearphishing” attack at the end of that same year, when a Kenyan government employee unknowingly downloaded an infected document, allowing hackers to infiltrate the network and access other agencies.

    “A lot of documents from the ministry of foreign affairs were stolen and from the finance department as well. The attacks appeared focused on the debt situation,” the Kenyan cybersecurity expert said.

    Another source – the intelligence analyst working in the region – said Chinese hackers carried out a far-reaching campaign against Kenya that began in late 2019 and continued until at least 2022.

    According to documents provided by the analyst, Chinese cyber spies subjected the office of Kenya’s president, its defence, information, health, land and interior ministries, its counter-terrorism centre and other institutions to persistent and prolonged hacking activity.

    The affected government departments did not respond to requests for comment, declined to be interviewed or were unreachable.

    By 2021, global economic fallout from the COVID-19 pandemic had already helped push one major Chinese borrower – Zambia – to default on its external debt. Kenya managed to secure a temporary debt repayment moratorium from China.

    In early July 2021, the cybersecurity research reports shared by the intelligence analyst in the region detailed how the hackers secretly accessed an email server used by Kenya’s National Intelligence Service (NIS).

    Reuters was able to confirm that the victim’s IP address belonged to the NIS. The incident was also covered in a report from the private defence contractor reviewed by Reuters.

    Reuters could not determine what information was taken during the hacks or conclusively establish the motive for the attacks. But the defence contractor’s report said the NIS breach was possibly aimed at gleaning information on how Kenya planned to manage its debt payments.

    “Kenya is currently feeling the pressure of these debt burdens…as many of the projects financed by Chinese loans are not generating enough income to pay for themselves yet,” the report stated.

    A Reuters review of internet logs delineating the Chinese digital espionage activity showed that a server controlled by the Chinese hackers also accessed a shared Kenyan government webmail service more recently from December 2022 until February this year.

    Chinese officials declined to comment on this recent breach, and the Kenyan authorities did not respond to a question about it.

    ‘BACKDOOR DIPLOMACY’

    The defence contractor, pointing to identical tools and techniques used in other hacking campaigns, identified a Chinese state-linked hacking team as having carried out the attack on Kenya’s intelligence agency.

    The group is known as “BackdoorDiplomacy” in the cybersecurity research community, because of its record of trying to further the objectives of Chinese diplomatic strategy.

    According to Slovakia-based cybersecurity firm ESET, BackdoorDiplomacy re-uses malicious software against its victims to gain access to their networks, making it possible to track their activities.

    Provided by Reuters with the IP address of the NIS hackers, Palo Alto Networks, a U.S. cybersecurity firm that tracks BackdoorDiplomacy’s activities, confirmed that it belongs to the group, adding that its prior analysis shows the group is sponsored by the Chinese state.

    Cybersecurity researchers have documented BackdoorDiplomacy hacks targeting governments and institutions in a number of countries in Asia and Europe.

    Incursions into the Middle East and Africa appear less common, making the focus and scale of its hacking activities in Kenya particularly noteworthy, the defence contractor’s report said.

    “This angle is clearly a priority for the group.”

    China’s embassy in Britain rejected any involvement in the Kenya hackings, and did not directly address questions about the government’s relationship with BackdoorDiplomacy.

    “China is a main victim of cyber theft and attacks and a staunch defender of cybersecurity,” a spokesperson said.

    Reporting by Aaron Ross in Nairobi, James Pearson in London and Christopher Bing in Washington
    Additional reporting by Eduardo Baptista in Beijing
    Editing by Chris Sanders and Joe Bavier

    Our Standards: The Thomson Reuters Trust Principles.

    Aaron Ross

    Thomson Reuters

    West & Central Africa correspondent investigating human rights abuses, conflict and corruption as well as regional commodities production, epidemic diseases and the environment, previously based in Kinshasa, Abidjan and Cairo.

    James Pearson

    Thomson Reuters

    Reports on hacks, leaks and digital espionage in Europe. Ten years at Reuters with previous postings in Hanoi as Bureau Chief and Seoul as Korea Correspondent. Author of ‘North Korea Confidential’, a book about daily life in North Korea. Contact: 447927347451

    Christopher Bing

    Thomson Reuters

    Award-winning reporter covering the intersection between technology and national security with a focus on how the evolving cybersecurity landscape affects government and business.

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  • Ed Sheeran Wins Another “Thinking Out Loud” Copyright Lawsuit

    Ed Sheeran Wins Another “Thinking Out Loud” Copyright Lawsuit

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    Less than two weeks after a federal jury ruled that Ed Sheeran’s 2014 single “Thinking Out Loud” did not plagiarize elements of Marvin Gaye’s “Let’s Get It On,” the English musician has beaten a second lawsuit involving the two songs. According to court documents obtained by Pitchfork, a New York federal judge, Louis L. Stanton, dismissed a complaint originally filed against Sheeran and others in 2018 by Structured Asset Sales, LLC (SAS), whose CEO, David Pullman, owns one-third of the copyright to Ed Townsend’s catalog. Townsend co-wrote “Let’s Get It On” with Marvin Gaye, making Pullman partial owner of its copyright. Townsend’s family was behind the other major lawsuit against Sheeran.

    In the complaint, viewed by Pitchfork, SAS alleged that “Thinking Out Loud” specifically infringed upon on the copyright of the sheet music for “Let’s Get It On.” The lawsuit also outlined multiple points of alleged plagiarism, including comparisons of the songs’ chord progressions, time signatures, bass lines, and more. At one point, SAS stated that Sheeran “experienced a sharp and sudden rise as an international music star in less than eighteen (18) months as a direct result of the commercial success of the release of “‘Thinking Out Loud.’”

    Judge Stanton reached a similar conclusion to the jury who awarded Sheeran his trial victory earlier this month, dismissing the case with prejudice. “It is an unassailable reality that the chord progression and harmonic rhythm in ‘Let’s Get It On’ are so commonplace, in isolation and in combination, that to protect their combination would give ‘Let’s Get It On’ an impermissible monopoly over a basic musical building block,” Stanton wrote in the filing.

    Stanton added that the chord progression for “Let’s Get It On” had been used “at least twenty-nine times” before Gaye and Townsend wrote the hit, and appeared in “another twenty-three songs” before “Thinking Out Loud” emerged.

    “There is no genuine issue of material fact as to whether defendants infringed the protected elements of ‘Let’s Get It On,” Stanton wrote. “The answer is that they did not.”

    Last year, Stanton had denied Sheeran’s bid for dismissal of SAS’ lawsuit. When reached today by Pitchfork, David Pullman said over the phone that it’s “unusual for a judge to reconsider his own decision.”

    As The Guardian notes, Sheeran is facing another pending lawsuit from SAS that compares the finished recordings of “Thinking Out Loud” and “Let’s Get It On.”

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    Madison Bloom

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  • Sheff G and Sleepy Hallow Indicted on Conspiracy Charges

    Sheff G and Sleepy Hallow Indicted on Conspiracy Charges

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    Brooklyn drill rappers Sheff G (born Michael Williams) and Sleepy Hallow (born Tegan Chambers) have been indicted alongside 30 other alleged members of the 8 Trey Crips and the affiliated 9 Ways gang. Both men were charged with conspiracy to commit murder in the second degree and criminal possession of a weapon in the second degree. Of the 32 defendants, 24 were in custody and arraigned in Brooklyn Supreme Court today; if convicted, Sheff G faces up to 25 years in prison. Pitchfork has reached out to his attorney and representatives for comment.

    Prosecutors accuse Sheff G of offering money and jewelry in exchange for “acts of violence,” including murder, presenting video evidence from cell phones and surveillance cameras, text messages, and property searches. The indictment describes one incident in which the rapper allegedly assembled three shooters and drove them to and from the crime scene. In another, on October 21, 2020, surveillance video captured suspects firing from a white vehicle at alleged members of the Folk Nation gang, killing one and injuring five more. 

    Prosecutors allege that Sheff G and his sister Crystal Williams conspired with the shooters to commit murder, and treated a group of nine people—including Sleepy Hallow—to dinner at a Manhattan steakhouse as a reward for carrying out the Folk Nation shooting. “This is not an indictment of rap music,” Brooklyn District Attorney Eric Gonzales said today at a press conference. “In fact, this investigation did not rely on a single lyric to prove any of the alleged crimes.” 

    Sheff G is currently incarcerated, having been sentenced to two years in prison after pleading guilty to criminal possession of a weapon in the second degree in November 2021. He had been arrested in January after police stopped him and found a loaded gun in his car. Sheff G would have been eligible for release in June. 

    Sheff G was one of five Brooklyn drill rappers removed from the lineup at Rolling Loud New York in 2019 at the request of NYPD, who cited safety concerns. 

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    Matthew Ismael Ruiz

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  • The Virgin Islands Serves Elon Musk a Subpoena in Jeffrey Epstein Case | Entrepreneur

    The Virgin Islands Serves Elon Musk a Subpoena in Jeffrey Epstein Case | Entrepreneur

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    Where’s Elon? That’s what government officials in the Virgin Islands want to know.

    On April 28, they tried to serve Tesla and Twitter CEO Elon Musk a subpoena for documents as part of a court case involving accused sex offender Jeffrey Epstein and mega-bank JPMorgan Chase. But the billionaire was nowhere to be found.

    “The Government contacted Mr. Musk’s counsel via email to ask if he would be authorized to accept service on Mr. Musk’s behalf in this matter but did not receive a response confirming or denying his authority,” officials said in a court filing earlier today at the United States District Court for the Southern District of New York.

    According to CNN, the Virgin Islands government has had so much trouble tracking down Musk they’ve had to hire an investigative firm.

    Musk isn’t being accused of any crimes. But the Virgin Islands attorney general’s office wants him to share “all communications between Musk and JPMorgan regarding Epstein or any role the disgraced financier played in the Tesla CEO’s financial management,” said CNN.

    Related: ‘You’re Going Way Back In Time’: Bill Gates Gets Visibly Irritated When Pressed on Epstein

    Virgin Islands vs. JPMorgan Chase

    The Musk subpoena is the latest move in a high-stakes lawsuit filed by the government of the U.S. Virgin Islands against JPMorgan Chase. The territory alleges that the bank “turned a blind eye” to evidence that Jeffrey Epstein used JPMorgan to ease sex-trafficking activities on his private island, Little St. James, until his suicide in 2019.

    The complaint says that its investigation “revealed that JPMorgan knowingly, negligently, and unlawfully provided and pulled the levers through which recruiters and victims were paid and was indispensable to the operation and concealment of the Epstein trafficking enterprise.”

    JPMorgan Chase has denied any wrongdoing and said it will vigorously defend itself against the lawsuit.

    What does any of this have to do with Elon Musk? According to Reuters, Musk may have introduced Epstein to his contacts at JPMorgan. Now the Virgin Islands wants to understand the nature of their relationship better.

    At press time, Musk had not responded to requests for comment.

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    Jonathan Small

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  • 18-Year-Old Confesses to Killing Pop Smoke

    18-Year-Old Confesses to Killing Pop Smoke

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    An 18-year-old who was charged in the death of Pop Smoke confessed to killing the rapper amid a home invasion on February 19, 2020, as the Los Angeles Times reports. He further confessed to other charges for home invasion robbery; his name has been withheld from the media because he was 15 years old at the time of the break-in. He was charged in juvenile court, and could remain incarcerated until he turns 25.

    Earlier this year, a 20-year-old defendant in the same case pleaded guilty to voluntary manslaughter. He was 17 at the time of the shooting, and was also charged as a juvenile. Five people were arrested in July 2020, nearly five months after they had broken into the Los Angeles Airbnb where Pop Smoke was temporarily staying. Two men, Keandre Rodgers and Corey Walker, are still facing murder charges in the case, and could face the death penalty if convicted. One more man was arrested but not ultimately charged in connection to the home invasion.

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    Allison Hussey

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  • How Startups Can Manage Their Cash Better, According to a VC | Entrepreneur

    How Startups Can Manage Their Cash Better, According to a VC | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    The bankruptcy of Silicon Valley Bank caused a great deal of stress for many startup founders. Although U.S. financial regulators intervened and took charge of customer deposits, the incident has shown that financial markets remain unstable.

    Amidst a banking panic, Signature Bank has suffered bankruptcy, while Credit Suisse is being acquired by its competitor UBS; First Republic Bank’s customers have recently withdrawn over $100 billion.

    To avoid being swept up in a bank run like this, startups should concentrate on getting better at cash management and fostering strong relationships with banks. That’s something VCs are going to pay more and more attention to when deciding to invest in a startup.

    Here are four tips that startups could take to minimize their financial exposure.

    Tip #1 — Put money in multiple banks

    When the economy is unstable, the likelihood of bank failures rises due to factors such as higher interest rates, increased risk of loan defaults, investment losses, large customer withdrawals and stricter regulations by the government.

    But even in steady economic conditions, banks may decide to freeze or close accounts for security or other reasons. That’s why relying on a single bank account is never a safe option.

    Businesses should distribute their funds across two-four non-affiliated banks, preferably in different countries, while closely monitoring the activity of each account. I’d recommend keeping two checking accounts with sufficient cash to cover 2-3 months of expenses in each one and a third account for investing any surplus cash in safe and liquid assets.

    Those who find managing more than three accounts challenging should have at least two. One account can be designated for regular business operations such as payroll and supplier payments, while the other can be used for holding the remaining funds.

    For startups with a balance sheet exceeding $3 million, it is advisable to open a savings account with a reputable and stable A-level bank such as JPMorgan Chase & Co or Bank of America in the United States, Deutsche Bank or Crédit Agricole in Europe.

    Consider buying Treasury Bills (or T-Bills), U.S. government bonds issued in U.S. dollars with a maturity period from one month to one year, which also have an annual yield of up to 5%. If a bank goes belly-up, T-bills won’t be impacted by the bank’s financial position because they are kept independently from the bank’s finances.

    A clever idea would be to create an investment plan that prioritizes capital preservation rather than aiming solely to profit. Never hold the money of your VCs in cryptocurrency — it’s too risky.

    Related: What Is A Cash Management Account?

    Tip #2 — Research countries, not just banks

    When you choose a bank for your startup, don’t just look at how secure it is. Think about other factors that could make it stable or unstable in a particular country, especially if there were times when banks went bust there.

    To find a bank in the right place, learn about the local rules and laws that control banks there. Evaluate economic and political climate, including inflation rates, the amount of interest banks charge and the stability of the currency and banks in that location.

    Related: Choosing A Bank For Your Startup: Here’s Some Things To Consider

    Tip #3 — Learn about deposit insurance provided by regulators, institutions

    Different countries have their regulators that manage their financial systems. For instance, the United States has the Federal Deposit Insurance Corporation, and the United Kingdom has the Financial Services Compensation Scheme.

    These regulators are intended to safeguard bank deposits to a certain extent by providing insurance in case of bank failure.

    The U.S. The FDIC insurance typically covers up to $250,000 per depositor per bank for individuals and businesses. Nonetheless, certain financial companies may provide additional deposit insurance options.

    In the wake of SVB’s collapse, U.S.-based financial platform Brex has upped its FDIC insurance limit for companies to $2.25 million. Meanwhile, neobank Mercury has increased deposit insurance for its customers to up to $3 million.

    Other ways to increase deposit insurance coverage are using certificates of deposit accounts (CDARS), credit unions, or the MaxSafe program, allowing to increase FDIC insurance to $3.75 million.

    The U.K. U.K.-based startups can obtain up to £85,000 deposit insurance coverage per bank, per depositor, via the Financial Services Compensation Scheme (FSCS).

    Private banks and building societies (a type of financial institution) offer deposit insurance above the FSCS limit by joining the FSCS Temporary High Balance Scheme (THBS). It may offer extra protection for deposits of up to £1 million for up to six months.

    Europe. In the European Union (EU), all member countries must have a deposit guarantee scheme (DGS) to safeguard customers in case a bank fails. DGS usually offers coverage of up to €100,000 per depositor, per bank. However, non-EU banks may not offer deposit insurance for companies at all.

    Some European countries — both EU and non-EU — have supplementary insurance opportunities beyond the DGS. In Norway, deposits of up to 2 million kroner per depositor, per bank are protected by Bankenes Sikringsfond. In Germany, many private banks are part of the Association of German Banks, which provides insurance coverage for deposits of up to €50 million.

    Due to the lengthy process of opening an account with an A-level bank (6-18 months), many startups prefer e-money institutions such as Wise, Stripe or PayPal instead. In this case, the account opening process is faster (a few weeks) and offers a more seamless customer experience. But financial regulators don’t normally protect the funds kept there.

    Related: Collapsed Silicon Valley Bank Finds a Buyer

    Tip #4 — Warm banks up to you

    By developing a rapport with your bank, you can benefit from more individualized updates on the status of your accounts and investments. One way to strengthen this relationship is by creating an investment account and buying shares or debt obligations through the bank.

    To establish a favorable relationship with banks, consider entrusting them with the management of your funds. High Net Worth Individuals (HNWIs), who possess investable assets of at least $1 million, are the main source of profit for banks through their money management services. In CEE, the standard commission for investment management services averages around 1-1.5%.

    In my experience as an investor, startups that adopt smart cash management strategies have the edge over their rivals when trying to raise funds.

    Create a plan for how much money you will have/need for the upcoming month; check and update it every day. Keep track of when you have to pay bills and when you expect to receive funds. Make sure to have a process for approving money transfers to avoid fraud; try to use the “four eyes principle.”

    If you anticipate any financial difficulties, notify your executive team and board, and reserve a credit line from one of your key banks to support the company’s operations for at least six months (but use it only if necessary).

    Related: Beyond the Basics: 5 Surprising Qualities Investors Seek in a Winning Team

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    Vital Laptenok

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  • 3 Tips to Ensure Your HR Department is Properly Empowered to Protect Your Employees and Business | Entrepreneur

    3 Tips to Ensure Your HR Department is Properly Empowered to Protect Your Employees and Business | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Too many founders have learned the hard way that weak people practices can expose their employees to risk, their company to costly legal jeopardy and leave their reputations indelibly stained.

    Today’s employees are seeking values-driven companies and come with a deeper understanding of their rights. If your HR shop isn’t screening applicants with an eye toward culture or speaking frankly with you about the impacts of key hires, your ability to shepherd your organization toward future success will be impaired.

    Worse, if your HR head has not been trained to act impartially or empowered to intercede quickly, it can result in systemic problems that prevent victims from finding justice. This pushes victims to seek other remedies, which show up daily in viral callouts and highly publicized court cases.

    Beyond unflattering headlines, many startups can see their financial value decimated just as they were taking off. If it’s not attorneys’ fees and settlement costs, it’s lost customers and potential partners due to the negative coverage. Even if a lawsuit exonerates your company, the mere accusation can come at a price, and extended court battles can expose sensitive internal company dealings.

    Related: This Entrepreneur Has Solutions for HR Problems You Didn’t Know You Had

    To prevent this, you must focus on how to set up a respected and experienced HR team that is empowered to handle misconduct allegations from the start, even if it involves someone from your executive team. It is on you to create a culture that supports calling out, investigating, and punishing workplace misconduct — be it harassment or discrimination, bullying or any other unlawful action.

    When setting up your HR department, here are three steps to help you avoid misconduct from arising in the first place — or, if it does arise, to ensure it is dealt with quickly and consistently.

    1: Hire experienced HR leaders who share your company’s values

    It can be difficult for HR staff to discern which aspects of a grievance are true and which ones aren’t. Add in a power imbalance like those that occurs between a manager and a subordinate, and HR may find itself not only caught between two employees but between higher-ranking staff who want the problem to simply go away. If you have not hired HR professionals with the experience to navigate the necessary conversations and evenly enforce the rules, you may be held liable for any wrongful acts that follow.

    As a founder, you must prioritize hiring HR executives who are strong and principled leaders. When interviewing potential candidates, ask them how they would handle tough allegations and what processes they would utilize to ensure fair outcomes for all parties. Based on their answers, you want to ensure they see eye to eye with your company’s values. You may also want to seek out experienced HR chiefs who have handled tough employee accusations before.

    After hiring the right talent, you need to make clear that they have the authority and the responsibility to handle all misconduct allegations equally, no matter who is accused — even if it’s someone on your executive team.

    Related: Here’s How Companies Are Ensuring Women’s Workplace Safety

    2. Create protocols that protect victims and your company, not the accused

    A National Women’s Law Center study found that as many as 70% of those who report harassment face some form of retaliation. And 37% noted that nothing happened to the harasser after the complaint. But even when the company is engaged, many will still farm out the process to outside investigators and attorneys. This, too, lends itself to a predictable pattern and usually concludes with a benign acknowledgment of the complaint followed by language indicating that the company took all steps required by law to resolve the complaint. What this really means is that they took as little action as possible to avoid liability.

    Unfortunately for these companies, there are many experienced attorneys watching and waiting for this. They know that there is likely to be damaging information in investigative reports and will use the discovery process to gain leverage for their client. This can be prevented if the company takes appropriate action from the beginning.

    This requires, first, conducting a fair and neutral investigation. This doesn’t require hiring an outside firm. A victim’s claims can often be verified by interviewing key staff and reviewing written communications and other records.

    Second, if the accusations are deemed to be true and serious, take swift action to hold the offender accountable. In many instances, that means terminating his or her employment.

    To ensure your process of investigating and ruling on a case is respected by all parties, it should be based on protocols that treat all accusations equally. This will ensure everyone involved — from the HR team to the executives, to the accuser, to the accused — has the same rights and responsibilities.

    3: Empower HR to let go of toxic employees, even if they are high-performing

    Proper handling of an allegation is rarely an issue when a low-level employee commits an offense. If an hourly worker engages in misconduct, companies can often be counted on to take appropriate action. But when it’s a highly-valued officer, decisions may be weighed against the perceived value the employee brings to the company. This reflects a misunderstanding of the true costs of these individuals.

    An abusive person in a management position can cost more than many realize through high employee turnover and productivity problems. Half of employees who leave their jobs do so, at least in part, because of bad managers, and replacing employees costs a company as much as 50% of the person’s salary. In terms of productivity, one study found that teams with toxic managers yielded 27% less revenue per employee than well-managed teams.

    A similar effect can be measured for public companies. When a high-level official of a publicly traded company gets called out for wrongdoing, the hit to the company’s stock price can cause the rapid loss of millions or even billions of dollars in market cap.

    Protecting these abusive employees isn’t just wrong. It’s costly and potentially fatal to your business. This is why it’s important to make clear to your HR department that it has the power to terminate employment for any employee based on the results of a fair investigation, even if they are high-ranking or high-performing.

    You may think none of this applies to you or that accusations will never occur in your company, but the numbers tell a different story. 60% of U.S. workers have experienced or witnessed workplace discrimination and, unfortunately, 40% reported being retaliated against after speaking up.

    In every one of these cases, the company has exposed itself to potential liability. Increasingly, law firms are looking out for opportunities to step in on behalf of these victims. You can protect your company and your employees by doing exactly that — protecting them, not the accused.

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    Kim Williams

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  • Major Labels Win $50 Million Judgement Against Mixtape Host Spinrilla

    Major Labels Win $50 Million Judgement Against Mixtape Host Spinrilla

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    A slate of major labels represented by the Recording Industry Association of America—including Atlantic, Sony, Warner, Roc A Fella, and others—have won a $50 million judgement in a copyright infringement case against the mixtape hosting platform Spinrilla. Judge Amy Totenberg, of the Northern District Court of Georgia handed down the ruling, viewed by Pitchfork, which further dictated that the site must shut down on Monday, May 8, at 12 a.m.

    Spinrilla was launched as an iOS app in 2013, expanding to Android the next year. The platform was primarily used by independent rappers to distribute their mixtapes, some of which used sampled material that had not been cleared with copyright holders. The RIAA filed a lawsuit on behalf of labels in 2017, claiming that Spinrilla had illegally hosted copyrighted material, advertised the infringed material on the site, and that it continued to host the content even after being alerted to violations. 

    Nearly 4,100 recordings were ultimately determined eligible for consideration in the case. Judge Totenberg ruled in 2020 that Spinrilla was liable for direct copyright infringement on those recordings. 

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    Allison Hussey

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  • U.S. Congress gears up for immigration overhaul as Title 42 ends

    U.S. Congress gears up for immigration overhaul as Title 42 ends

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    WASHINGTON, May 4 (Reuters) – A fresh push for a bipartisan immigration overhaul, coupled with enhanced border security, is emerging in the U.S. Congress, as thousands of migrants amass across the border in Mexico ahead of the end of COVID-era border restrictions next week.

    The latest among those efforts is a last-minute legislative push that would grant U.S. border authorities similar expulsion powers allowed under the expiring COVID restrictions – known as Title 42 – for a period of two years, according to a congressional office involved in the talks.

    Title 42 began under Republican former President Donald Trump in 2020 at the beginning of the COVID-19 pandemic and allows U.S. authorities to expel migrants to Mexico without the chance to seek asylum. The order is set to lift on May 11 when the COVID health emergency officially ends.

    But many Republicans and some Democrats, particularly in border areas, fear the end of the order will lead to a rise in migration that authorities are poorly equipped to face. A top border official recently told lawmakers that migrant crossings could jump to 10,000 per day after May 11, nearly double the daily average in March.

    Senators Kyrsten Sinema, an Arizona independent, and Thom Tillis, a North Carolina Republican, are leading the effort to temporarily extend border expulsions. The pair view it as a short-term fix while they work on broader immigration reform, Sinema spokesperson Hannah Hurley said.

    “This is squarely about the immediate crisis with the end of Title 42,” Hurley said.

    Separately, the Republican-controlled House of Representatives plans to pass a package of border security measures next week to place tougher constraints on asylum-seekers, resume construction of a wall along the southwest border with Mexico, and expand federal law enforcement.

    Many are seeking more sweeping change – but their hopes have been dashed in the past.

    It has been 37 years since Congress passed significant immigration reform, but a persistently high volume of migrants and an acute labor shortage have galvanized lawmakers. Republicans also cite the flow of illegal drugs into the United States through ports of entry as reason to harden border security.

    While some Democrats characterize the House border legislation as inhumane, several Democratic and Republican senators said they eagerly await such a bill.

    Tillis, who is pushing both the short-term legislative fix for Title 42’s end and a wider package of reforms, said a House-passed bill would be “something we can build on.”

    “It gives us some room to gain the support we need in the Senate” for broader legislation, he said, adding it could take two to three months to construct a compromise. But senators had no illusions this would be an easy task.

    Dick Durbin, the No. 2 Senate Democrat, said the House bill would provide clues on Republicans’ intent. He added that in conversations with fellow senators, “One of the first things they say is ‘well if the House starts the conversation I think we can get somewhere.’ We’ll see.”

    Since a 1986 immigration reform package, which resulted in some 3 million immigrants winning legal status, Congress repeatedly has failed to update the nation’s policies.

    Around 11 million unauthorized immigrants in the United States could have a stake in the outcome of this latest effort, along with U.S. businesses hungry for workers.

    To succeed in the Democrat-controlled Senate, it would need 60 senators from across both parties to back it, as well as win the support of the Republican-controlled House.

    “A high-wire act,” is how Republican Senator John Cornyn from border state Texas portrayed it, adding it was “the only path forward.”

    STARS ALIGNING

    The U.S. Chamber of Commerce, the nation’s largest business association, has launched a campaign urging Congress to act. It was endorsed by 400 groups, ranging from the American Farm Bureau Federation to the U.S. Travel Association.

    Republican-controlled states see their farming, ranching, food processing and manufacturing businesses begging for workers, a void that immigrants could fill if not for Washington’s clunky visa system.

    Finally, passage of an immigration bill coupled with beefed-up border security could boost President Joe Biden’s re-election campaign and give Republican candidates something to cheer, too.

    The House bill would deal with some of the five “buckets” in the Tillis-Sinema effort, according to a Senate source familiar with their work.

    Overall, they include a modernization of the plodding asylum system, improvements to how visas are granted, and measures to more effectively authorize immigrants, be they laborers and healthcare workers or doctors and engineers, to fill American jobs.

    There is also the fate of 580,000 “Dreamers” enrolled in the Deferred Action for Childhood Arrivals (DACA) program, who were brought illegally into the United States as children.

    Republicans have blocked their path to citizenship for two decades, arguing that would encourage more to take the dangerous journey to the border.

    Senators acknowledge some of their goals might have to be abandoned to achieve a “sweet spot.” But which ones?

    Democratic Senator Chris Murphy, who won passage last year of the first major gun control bill in about three decades, did so in part by recognizing that a too ambitious bill is a recipe for failure.

    Murphy was asked how the difficulty of winning immigration legislation stacks up to other recent battles, such as gun control, gay marriage and infrastructure investments.

    “It’s an 11 on a scale of 10.”

    Reporting by Richard Cowan; additional reporting by Ted Hesson; Editing by Mary Milliken and Diane Craft

    Our Standards: The Thomson Reuters Trust Principles.

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  • WHO experts to weigh whether world ready to end COVID emergency

    WHO experts to weigh whether world ready to end COVID emergency

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    LONDON, May 4 (Reuters) – A panel of global health experts will meet on Thursday to decide if COVID-19 is still an emergency under the World Health Organization’s rules, a status that helps maintain international focus on the pandemic.

    The WHO first gave COVID its highest level of alert on Jan. 30, 2020, and the panel has continued to apply the label ever since, at meetings held every three months.

    However, a number of countries, such as the United States, have recently begun lifting their domestic states of emergency. WHO Director-General Dr Tedros Adhanom Ghebreyesus has said he hopes to end the international emergency this year.

    A final decision by Tedros based on the panel’s advice is expected in the coming days. There is no consensus yet on which way the panel may rule, advisors to the WHO and external experts told Reuters.

    “It is possible that the emergency may end, but it is critical to communicate that COVID remains a complex public health challenge,” said Professor Marion Koopmans, a Dutch virologist who is on the WHO panel. She declined to speculate further ahead of the discussions, which are confidential.

    One source close to negotiations said lifting the “public health emergency of international concern,” or PHEIC, label could impact global funding or collaboration efforts. Another said that the unpredictability of the virus made it hard to call at this stage. Others said it was time to move to living with COVID as an ongoing health threat, like HIV or tuberculosis.

    “All emergencies must come to an end,” said Lawrence Gostin, a law professor at Georgetown University in the United States who follows the WHO.

    “I expect WHO to end the public health emergency of international concern. If WHO does not end it… [this time], then certainly the next time the emergency committee meets.”

    Dr. Jarbas Barbosa, director of the Pan American Health Organization (PAHO), said he was concerned that a change in status would lead to complacency, with weaker surveillance and falling vaccination levels.

    “(The PHEIC) does not bring any kind any harm for countries but at the same time it keeps their attention,” he told journalists.

    Reporting by Jennifer Rigby in London and Emma Farge in Geneva; Editing by Alexandra Hudson

    Our Standards: The Thomson Reuters Trust Principles.

    Jennifer Rigby

    Thomson Reuters

    Jen reports on health issues affecting people around the world, from malaria to malnutrition. Part of the Health & Pharma team, recent notable pieces include an investigation into healthcare for young transgender people in the UK as well as stories on the rise in measles after COVID hit routine vaccination, as well as efforts to prevent the next pandemic. She previously worked at the Telegraph newspaper and Channel 4 News in the UK, as well as freelance in Myanmar and the Czech Republic.

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  • Texas authorities arrest wife, friend of fugitive wanted in shooting

    Texas authorities arrest wife, friend of fugitive wanted in shooting

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    May 3 (Reuters) – Texas authorities have arrested the wife and a friend of a man accused of killing five of his neighbors, saying the two helped the suspect evade capture for four days, a local prosecutor said on Wednesday.

    Francisco Oropesa was apprehended on Tuesday after a manhunt conducted by local, state and federal officials. He was found in a closet under some laundry in a home in Montgomery County.

    The bloodshed erupted on Friday in nearby San Jacinto County after neighbors asked the suspect to stop firing his semiautomatic rifle in his yard because it was keeping their baby awake. Instead, the 38-year-old man reloaded, entered the home of the neighbors and killed five, including an 8-year-old boy, officials said.

    The suspect’s wife, identified as Divimara Nava, 52, was arrested Wednesday morning and was being held in Montgomery County, San Jacinto County District Attorney Todd Dillon said at a news conference.

    “We believe that Nava was providing him with material aid and encouragement, food and clothes, and had arranged transport to this house,” Dillon said.

    Nava was facing a felony charge of hindering apprehension and prosecution of a known felon, according to jail records.

    A friend of the suspect was also arrested on a marijuana charge and will be charged with helping the suspect flee the neighborhood in Cleveland, Texas, where the crime took place, Dillon said.

    A $5 million bond will be set for the suspected gunman when he appears later Wednesday before a judge in a local jail where he is being held on five counts of murder, San Jacinto County Chief Deputy Tim Kean said at an earlier news conference on Wednesday.

    The suspect was arrested in the town of Cut and Shoot, Texas, roughly 17 miles (27 km) west of Cleveland. Both are about 50 miles (80 km) north of Houston.

    Officials acted on a tip from an unidentified person who was eligible for an $80,000 reward offered for information leading to the arrest, San Jacinto County Sheriff Greg Capers said on Tuesday.

    Most of the victims were shot in the head. All were from Honduras and among the 10 people living at the address, but they were not all family members, Capers said.

    The suspect is a Mexican national who was deported from the United States four times since 2009, U.S. immigration officials said.

    Reporting by Brendan O’Brien in Chicago; Editing by Mark Porter

    Our Standards: The Thomson Reuters Trust Principles.

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  • Americans’ Verdict: Many Would Prefer AI Judges to Humans, The Harris Poll Finds

    Americans’ Verdict: Many Would Prefer AI Judges to Humans, The Harris Poll Finds

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    New data shows large majorities of Americans believe courts are highly biased, and nearly half would trust artificial intelligence to provide a more fair outcome.

    Justice is blind, as the saying goes, but nearly half of all Americans don’t believe that: If they were in court, they would prefer an artificial intelligence judge to a human judge. According to new research from The Harris Poll Thought Leadership and Futures Practice, eight in 10 Americans believe the court system is biased and provides unequal justice, and more than four in 10 believe an AI judge would be more likely to provide a fair sentence.

    The study’s findings are outlined in Harris Poll TL’s newsletter “The Next Big Think” and are based on a survey of 2,002 Americans conducted from March 31 to April 4, 2023, across representative samples of ethnic and generational demographics.  

    The study’s central finding is justice isn’t equal today, which has Americans looking for new alternatives. A strong majority of Americans – 79% of respondents – agree “Judicial courts don’t provide ‘equal justice to all’ even though they seek to be impartial in practice.” Six out of 10 respondents (58%) overall said they knew someone who had been treated unfairly in court – and reports of mistreatment escalate with Black (79%) and Hispanic (68%) respondents.

    Poll respondents also were asked about what groups were affected by courts’ biases. They said courts were biased in favor of 

    • The ultra-wealthy (55% of respondents)
    • Celebrities (54%)
    • Political leaders (48%)
    • Corporations (44%)
    • White people (37%)

    They said courts were biased against

    • People with prior offenses (49%) 
    • Undocumented immigrants (45%) 
    • Lower-income people (38%) 
    • Black people (35%) 
    • LGBTQIA people (35%) 

    Facing the inequality of the courts, Americans are curious about new avenues for change. In fact, four in 10 respondents (43%) say “I would prefer an AI judge rather than a human one in a potential court hearing.” And a majority of respondents who have been mistreated by the justice system (particularly Black and Hispanic people) would take a bet on an AI judge.  

    Even the experts at The Harris Poll did not expect those findings.  

    “We were surprised to learn over half of Americans think AI judges would be more equitable in sentencing, but when you take into consideration the doubts around the impartiality of our judicial system, it starts to add up,” said Libby Rodney, Chief Strategy Officer at The Harris Poll.

    A majority of all respondents agreed that AI could provide a variety of benefits, including: preventing long waits for court hearings (62%); countering human error and bias (60%); and providing more equitable sentences (59%).   

    However, Rodney cautioned that the perceived impartiality of AI is somewhat of an illusion: “It’s crucial to note AI is not necessarily neutral, as it reflects the values and biases of its creators. It’s essentially ‘people programming’ that codifies our belief systems into a machine that reflects our values back to us.”

    Regardless of the solution, bipartisan majorities believe the courts are in need of reform. Eight out of 10 agreed that “Our judicial system needs to fundamentally change in order to provide unbiased justice to all” — including 88% of Democrats and 72% of Republicans. And three-quarters (75%) agreed that “Rather than increasing freedom for all Americans, it feels like judicial courts are taking it away,” including strong majorities of Democrats (81%) and Republicans (70%).

    Rodney believes the lack of faith in U.S. courts we see in the data may be the result of a series of recent court decisions, from the U.S. Supreme Court’s overturning of Roe v. Wade last year to lower courts’ rulings on abortion access, transgender rights, and censorship issues. “The discontent directed at the Supreme Court could be spreading to the system as a whole,” she said. “While the possibilities for AI to alleviate some issues foster hope, people need to see more fundamental reform in order to repair the trust between the public and the judicial system.”

    To learn more about The Harris Poll Thought Leadership and Futures Practice and the survey on justice in the U.S. court system, visit their Substack newsletter, The Next Big Think. 

    About The Harris Poll Thought Leadership and Futures Practice 

    Building on 50+ years of experience pulsing societal opinion, we design research that is credible, creative, and culturally relevant. Our practice drives thought leadership and unearths trends for today’s biggest brands. We are focused on helping our clients get ahead of what’s next.

    Source: The Harris Poll

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  • The Entrepreneur’s Comprehensive Guide to Navigating Legal Changes | Entrepreneur

    The Entrepreneur’s Comprehensive Guide to Navigating Legal Changes | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    In an ever-changing landscape of regulations, staying ahead of legal and regulatory changes is critical to safeguarding your business’s success. It can be daunting to navigate the legal complexities, so read along for essential advice to help you stay on top of legal and regulatory changes, avoid potential pitfalls and ensure your business stays on the path to success.

    Why keep track of changing laws?

    Entrepreneurs benefit greatly from keeping track of changing laws as it is critical for the success and sustainability of their businesses. Regulations and laws affect every aspect of business operations, from hiring and firing employees to product development and marketing.

    Staying informed about these changes is vital for businesses to avoid potential legal pitfalls and penalties for non-compliance. Failure to comply with new regulations could result in costly fines, damage to reputation, legal disputes and even a loss of business. Being aware of new laws and regulations enables businesses to effectively adapt and adjust their operations accordingly, which can help them to gain a competitive advantage and grow their businesses.

    Here is how entrepreneurs can navigate legal and regulatory changes:

    1. Stay informed

    Keeping up to date with regulatory changes is crucial in ensuring that you are operating your business well within the guidelines. Regularly reviewing government websites, consulting with legal experts, subscribing to industry newsletters and attending conferences and seminars relevant to your industry are some of the tried-and-true ways to stay on top of changing regulations.

    You can also consider joining a professional association or networking group for your industry to stay informed on regulatory changes. Monitoring the websites and social media sites of government agencies is one of the best ways to stay informed about the most current changes that may occur. Going directly to the source of changing information is more reliable than solely relying on the media and news outlets.

    Related: What Business and Government Should Do When Innovation Outpaces Regulation

    2. Monitor your business practices

    Consistently monitor your business practices to ensure your business is compliant with regulatory changes. Regular internal audits can help businesses identify areas of non-compliance and take corrective actions. Entrepreneurs can develop an audit checklist to review their operations regularly and ensure that their business practices and processes are current with current regulations. Documenting compliance with the regulations can also help you avoid costly errors. Maintain accurate records to track compliance with regulatory requirements and ensure that all relevant employees understand and follow the new regulations.

    3. Embrace technology solutions

    Leveraging technology solutions can help streamline regulatory compliance. Software solutions can help automate and track compliance requirements by providing the necessary insight to manage your compliance obligations. Some technology solutions can automatically monitor legal and regulatory updates and even provide insights into changes that could potentially impact your business. Tools like Visualping.io, Social Mention, Evernote, RSS Feed Reader and Feedly are each excellent examples of technology solutions that can help entrepreneurs streamline the monitoring process.

    Related: Never Underestimate How Easy It Is to Screw Up When Deploying New Technology

    4. Seek professional advice

    In the case that you are uncertain about compliance updates and how they will impact your business, consult with legal and regulatory experts. They will provide insights into the implications of the changes for your business and advise you on how to comply with the new regulations. Seeking professional advice from lawyers, accountants and regulatory experts can provide peace of mind and reduce overhead costs. By partnering with an experienced legal team, businesses of any size can access the legal expertise they need to ensure they are in compliance with regulations.

    Related: Know When to Trust Your Gut and When to Seek Outside Advice

    5. Stay compliant!

    Navigating legal and regulatory changes can be challenging, but it’s fundamental for entrepreneurs to ensure that their businesses are compliant. Remember, compliance is not optional – it’s essential to the success of your business.

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    Ken Wisnefski

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  • Why This Unique Marketing Strategy Can Build a Cohesive Brand Message | Entrepreneur

    Why This Unique Marketing Strategy Can Build a Cohesive Brand Message | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Marketing is a very important part of running a business. To succeed in the competitive world, you need a strong marketing strategy that connects you with your target audience and helps you achieve your business goals.

    But it’s important to note that marketing isn’t just about promoting your products or services. It’s about creating a clear and consistent message that speaks to your audience, no matter where they are. That’s where integrated marketing communications (IMC) comes in.

    What is integrated marketing communications?

    Integrated Marketing Communications (IMC) is a powerful strategy that allows entrepreneurs to bring together all of their marketing efforts into a unified and consistent message. So, instead of having disjointed and confusing messages, IMC combines advertising, public relations, sales promotions and digital marketing to create a seamless and cohesive brand message.

    This strategy helps businesses connect with their target audience and build brand awareness, ultimately driving more sales and revenue. Therefore, by implementing an integrated approach to marketing, entrepreneurs can create a memorable brand experience for their customers and stand out from the competition.

    Benefits of integrated marketing communications

    There are several benefits to using an integrated marketing communications approach for your business. Integrated marketing communications help create a consistent brand message that resonates with your target audience. And by delivering a consistent message across all channels, you can increase brand recognition, build trust with your audience and improve customer loyalty.

    It also helps you save time and money by combining all marketing efforts into a cohesive strategy. You can streamline your marketing efforts and avoid duplicating efforts. This can also help you save money by eliminating the need for multiple marketing agencies or vendors.

    Related: How An Integrated Marketing Approach Can Help Generate Greater Brand Impact

    How to implement a successful IMC strategy?

    Elements of an effective IMC strategy include messaging, brand identity, audience segmentation, media channels and data analytics. However, implementing a successful IMC strategy involves several steps.

    Here are the steps to follow:

    1. Define your target audience — Identify and understand your target audience to create a successful IMC strategy. You need to fully understand who your audience is, what they want and how they want to be communicated.
    2. Develop your brand identity — Develop a strong brand identity that represents your business and resonates with your target audience. This involves creating a brand style guide that outlines your brand’s tone, voice and visual identity.
    3. Create your messaging — Create messaging that resonates with your audience and is consistent across all channels. This includes messaging for advertising, public relations, personal selling, sales promotion, direct marketing and digital marketing.
    4. Choose your media channels — Select the appropriate media channels for your marketing efforts to reach your target audience. Choose the channels your audience uses most that align with your brand messaging.
    5. Measure success — Measure the success of your marketing efforts using data analytics. This will help you track your results and identify areas for improvement to make informed decisions for future campaigns.

    Related: Why Customer Communication Makes a Difference During Inflation

    Tips for creating a successful integrated marketing communications strategy

    Creating an effective integrated marketing communications strategy can be overwhelming, but there are several tips that can help you succeed.

    Here are some actionable tips that can help you create a powerful IMC strategy:

    • Create a compelling message: To create a powerful IMC strategy, you need a compelling message that resonates with your audience across all channels. Your message should be clear, concise and aligned with your brand identity.
    • Understand your audience: Knowing your target audience is critical to creating messaging that connects with them. Conduct market research and audience segmentation to identify your target audience, their needs and preferences.
    • Use data to measure success: Use data analytics to measure the success of your marketing efforts. This will help you make informed decisions for future campaigns and track metrics such as website traffic, conversion rates and social media engagement.
    • Stay ahead of trends: Keep up with the latest trends and technologies in marketing to stay ahead of the competition. This includes staying updated on social media trends, email marketing best practices and emerging technologies like AI and machine learning.
    • Collaborate with your team: Collaboration is essential to creating an effective IMC strategy. Work closely with your team and vendors to ensure a cohesive message and consistent branding across all channels.

    By following these tips, you can create an integrated marketing communications strategy that resonates with your audience, drives results and helps your business succeed.

    Related: Maximize Marketing and Communication Strategies With the Largest Generation on the Planet

    Conclusion

    In conclusion, integrated marketing communications is a powerful strategy that entrepreneurs can use to build a strong brand identity, connect with their target audience and ultimately drive sales and revenue.

    By creating a consistent message across all channels and using data analytics to measure success, businesses can save time and money while creating a memorable brand experience for their customers.

    By following the steps and tips outlined in this article, entrepreneurs can develop and implement an effective IMC strategy that helps their businesses stand out from the competition and achieve their marketing goals.

    It’s essential for entrepreneurs to understand the importance of IMC and invest in a robust marketing strategy to succeed in today’s competitive marketplace.

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    Mohamed Elhawary

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  • Fugees’ Pras Michel Found Guilty of Criminal Conspiracy

    Fugees’ Pras Michel Found Guilty of Criminal Conspiracy

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    Fugees rapper Prakazrel “Pras” Michel has been found guilty in federal court on charges including conspiracy, witness tampering, and failing to register as an agent of China, The Associated Press and NBC News reports.

    Michel, a founding Fugee who later reinvented himself as a businessman and political figure, was found guilty of all charges, which included conspiracy to defraud the United States government and making foreign and conduit campaign contributions, one count of concealing material facts, and two counts of making a false entry in a record in connection with the conspiracy.

    Michel was first charged in 2019, alongside the Malaysian fugitive Low Taek Jho (aka Jho Low), who is still at large and wanted internationally, both in relation to this case and for his role in the 1MDB scandal. Michel was accused of funneling money to Jho Low for political campaigns and also of making false statements in connection with the conspiracy.

    Leonardo DiCaprio was called as a witness during the trial due to his connection with Jho Low, a Hollywood fixture who helped finance DiCaprio’s film The Wolf of Wall Street. “I understood him to be a huge businessman with many different connections in Abu Dhabi and Malaysia,” the actor testified, noting that he and Michel both attended group vacations with Jho Low.

    Prosecutors alleged that Jho Low paid Michel roughly $100 million to influence American politics, first with illegal political payments intended to support Barack Obama’s reelection in 2012, and later to influence Donald J. Trump and his administration to end a Department of Justice investigation into Jho Low.

    In the first instance, prosecutors alleged Michel was involved in a scheme to enlist attendees for an Obama fundraising dinner, then reimburse them for the tickets using foreign sources of money—and to threaten them if they came clean to authorities. The second alleged scheme took root as Low’s illegal lobbying came unravelled. It had been said to involve attempts to influence White House and justice officials to help return Chinese dissident Miles Guo, wanted for a separate fraud, to China. (Guo, who had also developed ties with former Trump adviser Steve Bannon, was arrested in March.)

    In court, Michel argued that he had been acting on the advice of his lawyers when he met a Chinese minister at the Four Seasons Hotel in New York in 2017. He denied “willfully and knowingly” acting as a “secret agent under the direction and control of China when he approached the FBI,” his defense lawyers David Kenner and Charles Haskell wrote in court filings.

    On April 18, Michel testified in court. He described himself as a “celebrity surrogate” for Low, claiming he was paid $20 million in an effort to get him a photo with Obama in 2012. Michel told jurors that he “basically asked for $1 million to start thinking about how” he might make the photo happen. The amount eventually grew to $20 million; Jho Low got the photo at a White House Christmas party. Michel also said he used his own money when he paid for friends to attend a 2012 Obama fundraiser.

    Michel also testified that his alleged efforts to have Guo extradited were not as an agent of China, but he took meetings with the FBI agents voluntarily. “I took it upon myself to report because I thought the FBI should know,” he said. The case was sent for jury deliberation on Monday, April 24. 

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    Jazz Monroe, Evan Minsker

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  • How to Shift Your Company’s Culture to be More Human-Focused | Entrepreneur

    How to Shift Your Company’s Culture to be More Human-Focused | Entrepreneur

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    Through his personal and professional experiences, John Sergides understands what drives clients, and the direction they are moving in. He says he knows that surrounding himself with the right team is absolutely imperative and that it is essential to have connectivity to the client base.

    As the CEO of MUFG Investor Services, an industry leader in fund administration, asset servicing, banking and fund financing, he works closely with the firm’s parent company, Mitsubishi UFJ Financial Group, one the world’s largest banks with assets topping $3.3 trillion.

    As someone who has had major surgery a number of times, he has seen firsthand how a firm culture responds to a person’s personal challenges. He believes that running a company means dealing with people as human beings, and that how a firm deals with people through difficult times is what will define it.

    He sat down with Jessica Abo to discuss the challenges facing his industry, how his company is navigating them, and how organic growth, valuing your staff and taking risks will help you make quantum leaps in business.

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    Jessica Abo

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  • Death toll in Kenyan starvation cult rises to 73 – police

    Death toll in Kenyan starvation cult rises to 73 – police

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    • Exhumations to resume on Tuesday
    • President Ruto calls cult leader “terrible criminal”

    NAIROBI, April 24 (Reuters) – Kenyan police have recovered 73 bodies, mostly from mass graves in a forest in eastern Kenya, thought to be followers of a Christian cult who believed they would go to heaven if they starved themselves, a police officer said on Monday.

    The death toll, which has repeatedly risen as exhumations have been carried out, could rise further. The Kenyan Red Cross said 112 people have been reported missing to a tracing and counselling desk it has set up at a local hospital.

    The cult’s leader, Paul Mackenzie, was arrested on April 14 following a tip-off that suggested the existence of shallow graves containing the bodies of at least 31 of his followers.

    “The death toll now stands 73 people,” Charles Kamau, head detective in Malindi, Kilifi County, told Reuters via telephone.

    He said three more people had been arrested, without giving details. Privately-owned NTV channel reported that one of those arrested was being held on suspicion of being a close associate of the leader of the cult.

    Followers of the self-proclaimed Good News International Church had been living in several secluded settlements in an 800-acre area within the Shakahola forest.

    The Directorate of Criminal Investigations said on Twitter that 33 people had so far been rescued.

    Earlier on Monday, the country’s police chief Japhet Koome, visiting the scene, said most of the people were found in mass graves as well as eight who were found alive and emaciated, but later died.

    Koome said 14 other cult members were in police custody.

    Mackenzie was arraigned on April 15 at Malindi Law Courts, where the judge gave police 14 days to conduct investigations while he was kept in detention. Kenyan media have reported that he is refusing food and water.

    Reuters was not able to reach any lawyer or representative for Mackenzie.

    President William Ruto said Mackenzie’s teachings were contrary to any authentic religion.

    “Mr Mackenzie … pretends and postures as a pastor when in fact he is a terrible criminal,” said Ruto, who was delivering a speech at an unrelated public event just outside Nairobi.

    He said he had instructed relevant agencies to get to the root cause of what had happened and to tackle “people who want to use religion to advance weird, unacceptable ideology in the Republic of Kenya that is causing unnecessary loss of life”.

    Reporting by Hereward Holland; Writing by Estelle Shirbon; Editing by Alexander Winning

    Our Standards: The Thomson Reuters Trust Principles.

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  • Airman suspected of leaking secret US documents hit with federal charges

    Airman suspected of leaking secret US documents hit with federal charges

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    BOSTON, April 14 (Reuters) – A 21-year-old member of the U.S. Air National Guard accused of leaking top secret military intelligence records online was charged on Friday with unlawfully copying and transmitting classified material.

    Jack Douglas Teixeira of North Dighton, Massachusetts, who was arrested by heavily armed FBI agents at his home on Thursday, made his initial appearance in a crowded federal court wearing a brown khaki jumpsuit.

    At the hearing, Boston’s top federal national security prosecutor, Nadine Pellegrini, requested that Teixeira be detained pending trial, and a detention hearing was set for Wednesday.

    During the brief proceeding, Teixeira said little, answering “yes” when asked whether he understood his right to remain silent.

    The judge said Teixeira’s financial affidavit showed he qualified to be represented by a federal public defender, and he appointed one.

    After the hearing, three of Teixeira’s family members left the courthouse, with a group of reporters trailing them for several blocks. They entered a car without making any comments.

    The leaked documents were believed to be the most serious U.S. security breach since more than 700,000 documents, videos and diplomatic cables appeared on the WikiLeaks website in 2010. The Pentagon has called the leak a “deliberate, criminal act.”

    This leak did not come to light until it was reported by the New York Times last week even though the documents were posted on a social media website weeks earlier.

    U.S. President Joe Biden said on Friday he ordered investigators to determine why the alleged leaker had access to the sensitive information, which included records showing purported details of Ukrainian military vulnerabilities and embarrassed Washington by revealing its spying on allies.

    Fallout from the case has roiled Washington. Senate Democratic leader Chuck Schumer has requested a briefing for all 100 senators next week while Republican House of Representatives Speaker Kevin McCarthy vowed to investigate.

    “The Biden administration has failed to secure classified information,” McCarthy said on Twitter. “Through our committees, Congress will get answers as to why they were asleep at the switch.”

    FBI agents arrest Jack Teixeira, an employee of the U.S. Air Force National Guard, in connection with an investigation into the leaks online of classified U.S. documents, outside a residence in this still image taken from video in North Dighton, Massachusetts, U.S., April 13, 2023. WCVB-TV via ABC via REUTERS

    Biden said he was taking steps to tighten security. “While we are still determining the validity of those documents, I have directed our military and intelligence community to take steps to further secure and limit distribution of sensitive information,” he said in a statement.

    MORE CHARGES EXPECTED

    A criminal complaint made public on Friday charges Teixeira with one count of violating the Espionage Act related to the unlawful copying and transmitting of sensitive defense material, and a second charge related to the unlawful removal of defense material to an unauthorized location.

    A conviction on the Espionage Act charge carries up to 10 years in prison.

    The charges are connected to just one leaked document so far, a classified record that described the status of the Russia-Ukraine conflict and included details about troop movements on a particular date.

    Experts expect more charges as investigators examine each leaked document. Teixeira could also face more counts depending on the number of times he separately uploaded and transmitted each document.

    “They are going to pick the ones (documents), I would imagine, that foreign governments have already seen,” said Stephanie Siegmann, the former national security chief for the U.S. Attorney’s office in Boston and now a partner with the Hinckley Allen law firm.

    In a sworn statement, an FBI agent said Teixeira had held a top secret security clearance since 2021 and also had sensitive compartmented access to other highly classified programs.

    Since May 2022, the FBI said, Teixeira has been serving as an E-3/airman first class in the Air National Guard and has been stationed at Otis Air National Guard Base in Massachusetts.

    Siegmann said one lingering question is why a 21-year-old National Guardsman held such a top-level security clearance.

    “That’s an issue that Department of Defense needs to now deal with,” she said. “Why would he be entitled to these documents about the Russia-Ukrainian conflict?”

    Reuters has reviewed more than 50 of the documents, labeled “Secret” and “Top Secret,” but has not independently verified their authenticity. The number of documents leaked is likely to be over 100.

    Reporting by Sarah N. Lynch in Washington and Tim McLaughlin in Boston
    Editing by Don Durfee and Alistair Bell

    Our Standards: The Thomson Reuters Trust Principles.

    Sarah N. Lynch

    Thomson Reuters

    Sarah N. Lynch is the lead reporter for Reuters covering the U.S. Justice Department out of Washington, D.C. During her time on the beat, she has covered everything from the Mueller report and the use of federal agents to quell protesters in the wake of George Floyd’s murder, to the rampant spread of COVID-19 in prisons and the department’s prosecutions following the Jan. 6 attack on the U.S. Capitol.

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  • 20-Year-Old Man Pleads Guilty to Voluntary Manslaughter of Pop Smoke

    20-Year-Old Man Pleads Guilty to Voluntary Manslaughter of Pop Smoke

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    A 20-year-old man has pleaded guilty to voluntary manslaughter for the murder of Pop Smoke, The Associated Press reports. The man, one among four others charged in the killing, also pleaded guilty in Inglewood juvenile court to home invasion robbery. His name has been withheld from the court because he was 17 years old at the time of the killing. He was sentenced to four years and two months in a juvenile facility.

    Three adults and two juveniles were arrested in connection with the Brooklyn rapper’s death, which occurred as part of a home invasion at a Los Angeles AirBnB on February 19, 2020. Two of the adults, Corey Walker and Keandre Rodgers, are charged with murder and face the death penalty if convicted. The other juvenile in the case, whose name is being withheld because he was 15 years old at the time of the shooting, also faces charges of murder during the commission of a robbery and burglary. The fifth man who was arrested, Jaquan Murphy, was not ultimately charged in connection with the killing.

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    Eric Torres

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  • Rein in the AI Revolution Through the Power of Legal Liability | Entrepreneur

    Rein in the AI Revolution Through the Power of Legal Liability | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    In an era where technological advancements are accelerating at breakneck speed, it is crucial to ensure that artificial intelligence (AI) development remains in check. As AI-powered chatbots like ChatGPT become increasingly integrated into our daily lives, it is high time we address potential legal and ethical implications.

    And some have done so. A recent letter signed by Elon Musk, who co-founded OpenAI, Steve Wozniak, the co-founder of Apple, and over 1,000 other AI experts and funders calls for a six-month pause in training new models. In turn, Time published an article by Eliezer Yudkowsky, the founder of the field of AI alignment, calling for a much more hard-line solution of a permanent global ban and international sanctions on any country pursuing AI research.

    However, the problem with these proposals is that they require the coordination of numerous stakeholders from a wide variety of companies and government figures. Let me share a more modest proposal that’s much more in line with our existing methods of reining in potentially threatening developments: legal liability.

    By leveraging legal liability, we can effectively slow AI development and make certain that these innovations align with our values and ethics. We can ensure that AI companies themselves promote safety and innovate in ways that minimize the threat they pose to society. We can ensure that AI tools are developed and used ethically and effectively, as I discuss in depth in my new book, ChatGPT for Thought Leaders and Content Creators: Unlocking the Potential of Generative AI for Innovative and Effective Content Creation.

    Related: AI Could Replace Up to 300 Million Workers Around the World. But the Most At-Risk Professions Aren’t What You’d Expect.

    Legal liability: A vital tool for regulating AI development

    Section 230 of the Communications Decency Act has long shielded internet platforms from liability for content created by users. However, as AI technology becomes more sophisticated, the line between content creators and content hosts blurs, raising questions about whether AI-powered platforms like ChatGPT should be held liable for the content they produce.

    The introduction of legal liability for AI developers will compel companies to prioritize ethical considerations, ensuring that their AI products operate within the bounds of social norms and legal regulations. They will be forced to internalize what economists call negative externalities, meaning negative side effects of products or business activities that affect other parties. A negative externality might be loud music from a nightclub bothering neighbors. The threat of legal liability for negative externalities will effectively slow down AI development, providing ample time for reflection and the establishment of robust governance frameworks.

    To curb the rapid, unchecked development of AI, it is essential to hold developers and companies accountable for the consequences of their creations. Legal liability encourages transparency and responsibility, pushing developers to prioritize the refinement of AI algorithms, reducing the risks of harmful outputs, and ensuring compliance with regulatory standards.

    For example, an AI chatbot that perpetuates hate speech or misinformation could lead to significant social harm. A more advanced AI given the task of improving the stock of a company might – if not bound by ethical concerns – sabotage its competitors. By imposing legal liability on developers and companies, we create a potent incentive for them to invest in refining the technology to avoid such outcomes.

    Legal liability, moreover, is much more doable than a six-month pause, not to speak of a permanent pause. It’s aligned with how we do things in America: instead of having the government regular business, we instead permit innovation but punish the negative consequences of harmful business activity.

    The benefits of slowing down AI development

    Ensuring ethical AI: By slowing down AI development, we can take a deliberate approach to the integration of ethical principles in the design and deployment of AI systems. This will reduce the risk of bias, discrimination, and other ethical pitfalls that could have severe societal implications.

    Avoiding technological unemployment: The rapid development of AI has the potential to disrupt labor markets, leading to widespread unemployment. By slowing down the pace of AI advancement, we provide time for labor markets to adapt and mitigate the risk of technological unemployment.

    Strengthening regulations: Regulating AI is a complex task that requires a comprehensive understanding of the technology and its implications. Slowing down AI development allows for the establishment of robust regulatory frameworks that address the challenges posed by AI effectively.

    Fostering public trust: Introducing legal liability in AI development can help build public trust in these technologies. By demonstrating a commitment to transparency, accountability, and ethical considerations, companies can foster a positive relationship with the public, paving the way for a responsible and sustainable AI-driven future.

    Related: The Rise of AI: Why Legal Professionals Must Adapt or Risk Being Left Behind

    Concrete steps to implement legal liability in AI development

    Clarify Section 230: Section 230 does not appear to cover AI-generated content. The law outlines the term “information content provider” as referring to “any person or entity that is responsible, in whole or in part, for the creation or development of information provided through the internet or any other interactive computer service.” The definition of “development” of content “in part” remains somewhat ambiguous, but judicial rulings have determined that a platform cannot rely on Section 230 for protection if it supplies “pre-populated answers” so that it is “much more than a passive transmitter of information provided by others.” Thus, it’s highly likely that legal cases would find that AI-generated content would not be covered by Section 230: it would be helpful for those who want a slowdown of AI development to launch legal cases that would enable courts to clarify this matter. By clarifying that AI-generated content is not exempt from liability, we create a strong incentive for developers to exercise caution and ensure their creations meet ethical and legal standards.

    Establish AI governance bodies: In the meantime, governments and private entities should collaborate to establish AI governance bodies that develop guidelines, regulations and best practices for AI developers. These bodies can help monitor AI development and ensure compliance with established standards. Doing so would help manage legal liability and facilitate innovation within ethical bounds.

    Encourage collaboration: Fostering collaboration between AI developers, regulators and ethicists is vital for the creation of comprehensive regulatory frameworks. By working together, stakeholders can develop guidelines that strike a balance between innovation and responsible AI development.

    Educate the public: Public awareness and understanding of AI technology are essential for effective regulation. By educating the public on the benefits and risks of AI, we can foster informed debates and discussions that drive the development of balanced and effective regulatory frameworks.

    Develop liability insurance for AI developers: Insurance companies should offer liability insurance for AI developers, incentivizing them to adopt best practices and adhere to established guidelines. This approach will help reduce the financial risks associated with potential legal liabilities and promote responsible AI development.

    Related: Elon Musk Questions Microsoft’s Decision to Layoff AI Ethics Team

    Conclusion

    The increasing prominence of AI technologies like ChatGPT highlights the urgent need to address the ethical and legal implications of AI development. By harnessing legal liability as a tool to slow down AI development, we can create an environment that fosters responsible innovation, prioritizes ethical considerations and minimizes the risks associated with these emerging technologies. It is essential that developers, companies, regulators and the public come together to chart a responsible course for AI development that safeguards humanity’s best interests and promotes a sustainable, equitable future.

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    Gleb Tsipursky

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