An additional half a billion dollars has been returned to the victims of Bernard Madoff’s Ponzi scheme. 

 

Roughly $506 million was returned to victims of the Ponzi scheme according to a Monday press release by the Securities Investor Protection Corporation and the office of trustee Irving Picard.

 

This now means that a total of $5.44 billion has been returned to victims since Madoff’s monumental scam was uncovered. 

 

However, more than four year after Madoff’s conviction over two-thirds of the stolen funds are either unaccounted for, or are yet to be returned to duped investors. 

 

Federal investigators claim that $17.5 billion was lost to Madoff’s Ponzi scheme, which crumbled with his arrest in December of 2008. Since then, investigators have recovered assets, including a yacht, jewelry and property and have reached settlements totaling nearly $9.2 billion. 

 

That said, many of the victims are still awaiting a settlement, and have yet to receive compensation for Madoff’s illegal activity. The trustee associated with the case claim that 1,106 accounts have been fully reimbursed out of a total 2,178 victims. 

 

Bernard Madoff, the mastermind behind the record-setting scheme is languishing in a federal prison in Butner, North Carolina. Mr. Madoff pleaded guilty in March of 2009 to running the massive Ponzi scheme, and as a result, was sentenced to 150 years without the opportunity for parole. 

 

Madoff’s brother Peter recently began 10-year prison sentence for aiding in the concealment of the scheme. 

 

Source: Associated Press

 

Tesla Motors is on the verge of reporting its first-ever quarterly profit following strong sales of its all-electric Model S. 

 

The announcement was a strong sign for the green motor company, pushing shares nearly 16 percent higher during Monday’s trading hours. 

 

“There have been a number of automotive startups over the past several decades; however, profitability is what makes a company legitimate,” said co-founder and CEO Elon Musk in a statement released late Sunday night. “The Telsa motor company is here to stay, and we will keep fighting for the electric car revolution.” 

 

The electric motor company expected to sell 4,500 units of the Model S during the first quarter, but sales surpassed the 4,750 unit mark this weekend. In response to the strong numbers, the company amended its first-quarter guidance. 

 

That said, Tesla might expect even bigger news later this week as Musk in a late night tweet, alluded to an announcement that will be “more important.”

 

The profitable quarter follows a disappointing final quarter of 2012, when Tesla reported a $75 million loss. 

 

The Tesla Model S is a full-size, four-door luxury sports vehicle that was unveiled in 2009, but did not become publicly available until the latter portion of 2012. Thus far, the company has sold roughly 10,000 electric cars to customers in 30 countries. 

 

The weekend’s positive news also came with an announcement that Tesla has decided to terminate production of its entry-level sedan, which sold for approximately $60,000. This scrapped vehicle was equipped with the smallest battery on the electric line; the 40-kilowatt hour model would deliver a range of only about 160 miles.

 

Tesla, with the scrapping of the entry-level model, is sticking with their larger 60 kilowatt hour battery option. The larger vehicle allows a range of closer to 235 miles and sells for roughly $62,400 following a $7,500 federal tax credit. 

 

In the announcement, Musk also thanked customers for continued support; those individuals that purchased the Model S in recent months did so even after the vehicle received scathing reviews from the New York Times and other media outlets. 

Although the Model S has been subject to negative reviews, the vehicle has received acclaim from other venues, including from both Automobile Magazine and Motor Trend. 

 

Source: Associated Press

Major automakers recorded another solid month of car and truck sales, kicking off the crucial spring selling season on a positive note. 

 

Ford motor, General Motors, and Chrysler Group posed domestic sales gains of 5 percent or better while Toyota Motor sales edged up 1 percent from a year ago. The Chrysler Group posted its strongest sales figures since December of 2007.

 

Sales throughout the auto industry are poised to beat expectations and rise above the 15 million yearly sales rates for the fifth straight month. This positive news comes after the industry went nearly five years without reaching this benchmark goal. 

 

“American consumers are quite confident in the economy, with bad weather and sequesters not deterring them the slightest bit,” said Michelle Krebs, a senior analyst with Edmunds. “The picture is the same as it always has been: a pent-up demand from older vehicles is unleashing credit is available at marginal rates, and new products are resonating with the consumer base.”

 

The four largest automakers were roughly in line with sales expectations for the month of March. Ford and GM both reported much stronger sales for SUVs, pickups and crossover vehicles than they did for compact or traditional cars while Chrysler’s Ram truck unit also posted strong sales numbers. These metrics could be a sign that lower March gas prices boosted truck sales for the month of March.

 

GM claims the rebound in the housing market also helped propel truck sales. Purchases by small businesses, including building contractors, increased by roughly 15,000 vehicles at GM, accounting for a 32 percent boost compared to 2012 sales figures. The jump in home sales and corresponding home prices are allowing contractors to start building new homes at a greater pace than at any time in the previous five years. 

 

Source: AP

Mortgaging financing giant Fannie Mae reported a record profit of $17.2 billion in 2012, symbolizing the improvement experienced by the housing market over the course of the last five years. 

 

Just a couple years ago, the U.S. government was forced to intervene and take control of Fannie Mae, which was nearly crippled by deep losses from foreclosures and plunging real estate prices after the market’s bubble burst in 2007.

 

2012 was the first full year profit reported by Fannie Mae since 2006, and marked a legitimate turnaround from the $16.9 billion loss it posted for 2011.

 

The profitable year also means that Fannie Mae is ready to pay tens of billions of dollars in dividends to the government in what may turn out to be its largest repayment since the $116 bailout offered by the federal government to rescue the mortgage giant. 

Fannie Mae’s improvement in results is a direct result from a sharp decrease in losses on its loan portfolio. This significant drop was due to the fact foreclosures and delinquencies on the mortgages it backs have declined in sizeable numbers. 

Fannie Mae said it anticipates its “earnings to remain strong over the next several years.”

 

The domestic real estate market has enjoyed a substantial recovery as decreased mortgage rates and a shrinking supply of real estate has combined to boost home sales and prices. 

 

In addition to these favorable metrics, a settlement payout from Bank of America also boosted Fannie’s 2012 pre-tax income by over $1.3 billion. Bank of America paid the mortgage financier $3.6 billion in a settlement over risky mortgages that Countrywide Financial sold Fannie during the real estate bubble. Countrywide was then purchased by Bank of America. 

 

Fannie Mae’s profit in 2012 was more than twice the company’s previous record of $8 billion in 2003. The mortgage lender’s $7.6 billion profit during the final quarter of 2012 also represented its best 3-month run in the company’s history. 

 

Improvements in Fannie’s profit margins is fantastic news for American taxpayers as Fannie pays dividends to the U.S. treasury on shares the government owns. Dividend payments totaled over $11.5 billion 2012 and over $4 billion in 2013, bringing total payments to the treasury north of $33.5 billion. 

 

Another benefit to taxpayers is that Fannie Mae’s increased profitability opens the for the lender to use an accounting treatment to reinstate previous tax credits worth nearly $60 billion, which it can further use to pay the Federal Government. 

 

Source: CNN

 

 

CVS charges $150 for a monthly prescription of the generic form of the cholesterol drug Lipitor—the same drug sells for $17 at Costco. 

 

This information was divulged in a recent Consumer Report survey that sent undercover shoppers to 200 pharmacies that carry five prominent drugs: Lipitor, Actos, Lexapro, Plavix and Singulair, all of which lost their patents over the last couple of years. 

 

These mystery shoppers discovered that they could be paying as much as $750 or a whopping 447 percent more each year for a generic prescription drug at the highest-priced pharmacy, compared with the cheapest pharmacy.

 

The most expensive pharmacies to purchase these prescription drugs were Target, CVS and Rite Aid. The cheapest pharmacies were found at Costco and Sam’s Club while Walgreen’s and Wal-Mart fell somewhere in the middle. 

 

So what is the principal factor driving such a considerable discrepancy? 

 

Executives with the Consumer Reports surveys said the difference in prices stem primarily from what sells at each pharmacy or store. “Places like Rite Aid or CVS rely on their pharmacies as their major source of revenue,” said Lisa Gill, a Consumer Reports editor. “In contrast, Sam’s Club and Costco are using low drug prices to attract people to their stores to spend money on other goods.”

 

Many consumers are willing to pay a premium at a drug store because of convenience; stores like CVS and Rite Aid are open 24 hours a day, located in suburban areas, and equipped with drive-through windows. 

 

However, for most consumers, purchasing generics at stores like Costco can be worth the hassle; this is especially true for those using the drugs over a long period of time.

Spokespersons for CVS claimed that pricing surveys like the one offered by Consumer Reports are too small of a sample size to draw meaningful conclusions regarding which pharmacies offer the best value for generic drug purchases. CVS also claimed that the surveys often do not take into account the discounts and third-party insurance programs that pharmacies utilize to lower prices. 

 

In response to these statements, Consumer Reports said discounting programs are helpful, but not truly effective to lower costs. 

 

In a separate survey, Consumer Reports found that Americans who regularly took prescription drugs spent roughly $760 out of pocket in 2012, or 12 percent more than in 2011. Mrs. Gill of Consumer Reports said to get the price, consumers should compare prices by calling different pharmacies in their area to see who offers the best price.  

 

Source: CNN

 

The new Porsche Panamera E-Hybrid will boast a 20-mile all-electric driving range, along with an 84 mile per hour all-electric maximum speed. 

 

Porsche is set to unveil a new plug-in hybrid version of its Panamera four-door vehicle at the Shanghai Motor Show in China towards the end of the month. The new Panamera E-Hybrid will serve as Porsche’s first plug-in hybrid vehicle.

 

Early pricing for the Panamera E-Hybrid is set at an average of $99,000. In addition to the E-model, Porsche currently has two hybrid models already in production, versions of the Cayenne SUV and the Panamera. However, the Panamera E-Hybrid is the first Porsche vehicle that can be plugged in for a battery charge from an external power source. 

 

This new vehicle is part of an aggressive expansion of the Panamera line-up which also includes larger extended-wheelbase models of the vehicle. The extended wheelbase models were produced primarily for the Asian market; however, Porsche spokesman Calvin Kim announced they will be offered in the U.S. market sometime this year. 

 

With a 95 horsepower electric motor and a 3.0 liter V6 gasoline engine, the new Panamera E-Hybrid will have a maximum power of 415 horsepower. The new model will come equipped with an all-electric driving range of approximately 20 miles on a full charge, which can power the vehicle for roughly two-and-a-half hours, according to company statements. The new vehicle will be able to reach speeds of 84 miles per hour while in the all-electric mode. Utilizing all available power, the vehicle travels from zero to 60 miles per hour in 5.2 seconds with a maximum speed of 167 miles per hour. Fuel economy figures for the new vehicle have not been made public yet. 

 

Prices for the 2014 Panamera E-Hybrid will start at $78,000 for the base model and rise all the way up to $161,000 for the turbo Executive model, which is a high-performance extended-wheelbase vehicle. 

 

Porsche is also developing another hybrid; the Porsche 918 Spyder high-performance sports vehicle will be offered for a starting price of $850,000 and will be available in the United States by the end of this year. 

 

Source: AP

 

 Zynga, as a result of now offering real money online poker throughout the United Kingdom, experienced strong earnings for the first quarter of this year.

 

Shares of Zynga surged more than 12 percent on Wednesday after the company announced that it had just started offering real-money online wagering in the United Kingdom.

 

Zynga, which is widely known for its popular internet games such as FarmVille, has soared approximately 40 percent this year based on expectations that it would further penetrate the lucrative online wagering market. 

 

The new ZyngaPlusCasino and ZyngaPlusPoker games are now offered in partnership with London-based bwin.party, one of the largest online gambling sites in Europe. Through this partnership, players will have access to various table games, poker and slots. 

 

Online gambling is legal in a number of places throughout the world but is mostly prohibited in the United States. However, investors are optimistic that an opportunity for online gambling may soon be a reality in the states. 

 

“Our vision in the long-run is to offer players the next generation of wagering games on various platforms in regulated markets throughout the world,” said Zynga’s chief revenue officer, Barry Cottle. 

 

The gambling industry has been lobbying the United States Congress to relax online gambling bans, claiming that table games and poker revolve around skill as oppose to luck. New Jersey, Nevada and Delaware have all recently legalized various forms of online gaming. 

 

While Zynga built its reputation and brand on Facebook through games like FarmVille, the popularity of those titles has taken a hit over the past year; Zynga has shuttered over a dozen of its titles since October. 

 

Even though, the gaming company has enjoyed considerable success this year, its current stock price of roughly $3.50 is still 65 percent below its initial offering of $10. 

Zynga went public in December of 2011; shares of Zynga are currently 80 percent below the all-time high, which was hit in March of 2012. 

 

Source: CNN

 

Counterstrike: Facebook’s New Weapons against Google

 

Facebook is planning to use Google’s own platform—the Android Operating System—against it. 

 

The last time Facebook and Google had an opportunity to make friends was during the fall of 2007, when the two mega powers discussed an advertising alliance. Ultimately, Facebook rejected Google in favor of archrival Microsoft. 

 

The relationship between Facebook and Google has soured since the snubbing as Facebook grew to become an online superpower it opted to poach salespeople, engineers, and executives from Google. The battle for talent is now seemingly perpetual, along with feuds over privacy issues and advertisers. The feud became so intense that Facebook even attempted to orchestrate a smear campaign against the search giant. Google responded to this low blow by paying astronomical sums to retain their talent and spending billions to develop Google+, the search engine’s own social network and direct competitor to Facebook. 

 

Now, Facebook is taking aim at one of Google’s other crown jewels: the open-source Android operating system for mobile devices. Through the creation of a new application called Home, Facebook is venturing into the world of mobile devices, placing itself front and center on popular smart phones while pushing Google’s prized creations, like maps, Gmail, and search into the background. 

 

CEO and founder of Facebook, Mark Zuckerberg said he was not sure how Google would react, but suggested that Home could help Android devices by separating themselves from the iPhone. 

 

In the short-run, Zuckerberg could be right; any boost to Android will help Google, which a significant chunk of its revenue on mobile devices through ads in search results, apps and web pages. However, over time, if the Facebook mobile app platform succeeds, Google could suffer. If Facebook takes the lead role on Android mobile devices, the value of a new Android device to Google will decrease, and its grip on the Android consumer base will weaken. 

 

Facebook is not the first rival to use Android for its own benefit. Amazon, through the creation of the Kindle Fire, also markets Android devices. Moreover, Google’s ally Samsung has made tweaks to the interface of its Android devices and offers cloud storage services to rival the search giant. 

 

Source: AP

 

The India-based advertising agency that created an ad showing three women tied up in the back of a Ford has fire several of the employees responsible for creating the images. 

 

The cartoonish advertisement, produced by WPP unit JWT, were not officially part of a paid advertisement campaign; however, they struck a nerve as the nation of India institutes new regulations to protect women following a rash of high-profile gang attacks and rapes. 

 

One of the most disturbing of the images depicts Silvio Berlusconi the disgraced prime minister of Italy driving a Ford with three tied-up females in the trunk. Another of the images depicts Paris Hilton driving a Ford Figo with what appears to be the three Kardashian sisters tied-up in the trunk. A third image of the campaign depicts three male race-car drivers tied up in a similar vehicle. 

 

“After a detailed internal investigation, we have taken the appropriate disciplinary action with those responsible for these images,” the company stated in an announcement. “These were necessary steps to ensure that both the right procedures and oversight are strictly enforced so that this will not happen again.”

 

A spokesperson for the advertising agency declined to mention how many employees had been fired over the distasteful advertisements. The ads were also no published nor seen by senior officials at the agency or Ford. 

 

“We regret this incident and fully support our partners that it should have never happened,” the automaker industry said this week in a prepared statement. “The advertisements are contrary to the standards of decency and professionalism within the Ford Company and our agency partners.”

 

WPP also released a statement claiming that it “deeply regrets the existence of the distasteful advertisements.” 

 

The Ford Motor Company unveiled the Figo, a sub-compact vehicle in 2009 to be produced in India and exported to Africa and other Asian countries. 

 

Source: Associated Press

 

Yahoo CEO Marissa Mayer took home a $1.12 million cash bonus for her first half-year on the job in 2012. In addition to the cash bonus, Mayer received restricted stock worth another $13 million, according to Yahoo company filings. 

 

Filings also disclosed that Mayer, who joined Yahoo in July of 2012, will receive a $1 million base salary in 2013 and a cash bonus of up to $2 million. 

 

The 585,000 shares of Yahoo stock that Mayer received in grants was added to her 2.1 million options and shares worth roughly $47 million at Wednesday’s closing price. Under Mayer’s employment contract, which was disclosed last year, she received a retention bonus of $15 million in Yahoo stock, $15 million in stock options based on company performance and an additional $14 million in stock to offset the money she left on the table from leaving Google to take the post at Yahoo. 

 

Yahoo share prices have boomed since Mayer took over as CEO; since July of last year, the company’s stock price has nearly doubled. Mayer’s success has been closely watched; the company beat earnings in her first two quarters as CEO, and to continue the success, Mayer announced revitalization plans to ensure solid revenue growth. 

Meyer is no stranger to the news; starting last summer when disclosed a pregnancy at the same time she was appointed CEO. Meyer gave birth to her first child in September and received even more attention when she claimed that giving birth while on the job was “easy.” 

 

Last month Meyer, through an email from the head of Human Resources at Yahoo, told employees that they would no longer be able to work from home. This new policy has been widely criticized, especially by women who are on the verge of giving birth.