Lobbying, a Windfall and a Leader’s Family

Gilles Sabrie for The New York Times

Ping An, one of China’s largest financial services companies, is building a 115-story office tower in Shenzhen. The company is a $50 billion powerhouse now worth more than A.I.G., MetLife or Prudential.

SHENZHEN, China — The head of a financially troubled insurer was pushing Chinese officials to relax rules that required breaking up the company in the aftermath of the Asian financial crisis.

The survival of Ping An Insurance was at stake, officials were told in the fall of 1999. Direct appeals were made to the vice premier at the time, Wen Jiabao, as well as the then-head of China’s central bank — two powerful officials with oversight of the industry.

“I humbly request that the vice premier lead and coordinate the matter from a higher level,” Ma Mingzhe, chairman of Ping An, implored in a letter to Mr. Wen that was reviewed by The New York Times.

Ping An was not broken up.

The successful outcome of the lobbying effort would prove monumental.

Ping An went on to become one of China’s largest financial services companies, a $50 billion powerhouse now worth more than A.I.G., MetLife or Prudential. And behind the scenes, shares in Ping An that would be worth billions of dollars once the company rebounded were acquired by relatives of Mr. Wen.

The Times reported last month that the relatives of Mr. Wen, who became prime minister in 2003, had grown extraordinarily wealthy during his leadership, acquiring stakes in tourist resorts, banks, jewelers, telecommunications companies and other business ventures.

The greatest source of wealth, by far, The Times investigation has found, came from the shares in Ping An bought about eight months after the insurer was granted a waiver to the requirement that big financial companies be broken up.

Long before most investors could buy Ping An stock, Taihong, a company that would soon be controlled by Mr. Wen’s relatives, acquired a large stake in Ping An from state-owned entities that held shares in the insurer, regulatory and corporate records show. And by all appearances, Taihong got a sweet deal. The shares were bought in December 2002 for one-quarter of the price that another big investor — the British bank HSBC Holdings — paid for its shares just two months earlier, according to interviews and public filings.

By June 2004, the shares held by the Wen relatives had already quadrupled in value, even before the company was listed on the Hong Kong Stock Exchange. And by 2007, the initial $65 million investment made by Taihong would be worth $3.7 billion.

Corporate records show that the relatives’ stake of that investment most likely peaked at $2.2 billion in late 2007, the last year in which Taihong’s shareholder records were publicly available. Because the company is no longer listed in Ping An’s public filings, it is unclear if the relatives continue to hold shares.

It is also not known whether Mr. Wen or the central bank chief at the time, Dai Xianglong, personally intervened on behalf of Ping An’s request for a waiver, or if Mr. Wen was even aware of the stakes held by his relatives.

But internal Ping An documents, government filings and interviews with bankers and former senior executives at Ping An indicate that both the vice premier’s office and the central bank were among the regulators involved in the Ping An waiver meetings and who had the authority to sign off on the waiver.

Only two large state-run financial institutions were granted similar waivers, filings show, while three of China’s big state-run insurance companies were forced to break up. Many of the country’s big banks complied with the breakup requirement — enforced after the financial crisis because of concerns about the stability of the financial system — by selling their assets in other institutions.

Ping An issued a statement to The Times saying the company strictly complies with rules and regulations, but does not know the backgrounds of all entities behind shareholders. The company also said “it is the legitimate right of shareholders to buy and sell shares between themselves.”

In Beijing, China’s foreign ministry did not return calls seeking comment for this article. Earlier, a Foreign Ministry spokesman sharply criticized the investigation by The Times into the finances of Mr. Wen’s relatives, saying it “smears China and has ulterior motives.”

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Scientists See Advances in Deep Learning, a Part of Artificial Intelligence

Hao Zhang/The New York Times

A voice recognition program translated a speech given by Richard F. Rashid, Microsoft’s top scientist, into Mandarin Chinese.

Using an artificial intelligence technique inspired by theories about how the brain recognizes patterns, technology companies are reporting startling gains in fields as diverse as computer vision, speech recognition and the identification of promising new molecules for designing drugs.

The advances have led to widespread enthusiasm among researchers who design software to perform human activities like seeing, listening and thinking. They offer the promise of machines that converse with humans and perform tasks like driving cars and working in factories, raising the specter of automated robots that could replace human workers.

The technology, called deep learning, has already been put to use in services like Apple’s Siri virtual personal assistant, which is based on Nuance Communications’ speech recognition service, and in Google’s Street View, which uses machine vision to identify specific addresses.

But what is new in recent months is the growing speed and accuracy of deep-learning programs, often called artificial neural networks or just “neural nets” for their resemblance to the neural connections in the brain.

“There has been a number of stunning new results with deep-learning methods,” said Yann LeCun, a computer scientist at New York University who did pioneering research in handwriting recognition at Bell Laboratories. “The kind of jump we are seeing in the accuracy of these systems is very rare indeed.”

Artificial intelligence researchers are acutely aware of the dangers of being overly optimistic. Their field has long been plagued by outbursts of misplaced enthusiasm followed by equally striking declines.

In the 1960s, some computer scientists believed that a workable artificial intelligence system was just 10 years away. In the 1980s, a wave of commercial start-ups collapsed, leading to what some people called the “A.I. winter.”

But recent achievements have impressed a wide spectrum of computer experts. In October, for example, a team of graduate students studying with the University of Toronto computer scientist Geoffrey E. Hinton won the top prize in a contest sponsored by Merck to design software to help find molecules that might lead to new drugs.

From a data set describing the chemical structure of 15 different molecules, they used deep-learning software to determine which molecule was most likely to be an effective drug agent.

The achievement was particularly impressive because the team decided to enter the contest at the last minute and designed its software with no specific knowledge about how the molecules bind to their targets. The students were also working with a relatively small set of data; neural nets typically perform well only with very large ones.

“This is a really breathtaking result because it is the first time that deep learning won, and more significantly it won on a data set that it wouldn’t have been expected to win at,” said Anthony Goldbloom, chief executive and founder of Kaggle, a company that organizes data science competitions, including the Merck contest.

Advances in pattern recognition hold implications not just for drug development but for an array of applications, including marketing and law enforcement. With greater accuracy, for example, marketers can comb large databases of consumer behavior to get more precise information on buying habits. And improvements in facial recognition are likely to make surveillance technology cheaper and more commonplace.

Artificial neural networks, an idea going back to the 1950s, seek to mimic the way the brain absorbs information and learns from it. In recent decades, Dr. Hinton, 64 (a great-great-grandson of the 19th-century mathematician George Boole, whose work in logic is the foundation for modern digital computers), has pioneered powerful new techniques for helping the artificial networks recognize patterns.

Modern artificial neural networks are composed of an array of software components, divided into inputs, hidden layers and outputs. The arrays can be “trained” by repeated exposures to recognize patterns like images or sounds.

These techniques, aided by the growing speed and power of modern computers, have led to rapid improvements in speech recognition, drug discovery and computer vision.

Deep-learning systems have recently outperformed humans in certain limited recognition tests.

Last year, for example, a program created by scientists at the Swiss A. I. Lab at the University of Lugano won a pattern recognition contest by outperforming both competing software systems and a human expert in identifying images in a database of German traffic signs.

The winning program accurately identified 99.46 percent of the images in a set of 50,000; the top score in a group of 32 human participants was 99.22 percent, and the average for the humans was 98.84 percent.

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Protests Erupt After Egypt’s Leader Seizes New Power

Tara Todras-Whitehill for The New York Times

Egyptians in central Cairo ran from tear gas during clashes with the police on Friday. Protesters took to the streets in several cities. More Photos »

CAIRO — Protests erupted across Egypt on Friday, as opponents of President Mohamed Morsi clashed with his supporters over a presidential edict that gave him unchecked authority and polarized an already divided nation while raising a specter, the president’s critics charged, of a return to autocracy.  

In an echo of the uprising 22 months ago, thousands of protesters chanted for the downfall of Mr. Morsi’s government in Cairo, while others ransacked the offices of the president’s former party in Suez, Alexandria and other cities.

Mr. Morsi spoke to his supporters in front of the presidential palace here, imploring the public to trust his intentions as he cast himself as a protector of the revolution and a fledgling democracy.

In a speech that was by turns defensive and conciliatory, he ultimately gave no ground to the critics who now were describing him as a pharaoh, in another echo of the insult once reserved for the deposed president, Hosni Mubarak.

“God’s will and elections made me the captain of this ship,” Mr. Morsi said.

The battles that raged on Friday — over power, legitimacy and the mantle of the revolution — posed a sharp challenge not only to Mr. Morsi but also to his opponents, members of secular, leftist and liberal groups whose crippling divisions have stifled their agenda and left them unable to confront the more popular Islamist movement led by the Muslim Brotherhood.

The crisis over his power grab came just days after the Islamist leader won international praise for his pragmatism, including from the United States, for brokering a cease-fire between Hamas and Israel.

On Friday, the State Department expressed muted concern over Mr. Morsi’s decision. “One of the aspirations of the revolution was to ensure that power would not be overly concentrated in the hands of any one person or institution,” said the State Department spokeswoman, Victoria Nuland.

She said, “The current constitutional vacuum in Egypt can only be resolved by the adoption of a constitution that includes checks and balances, and respects fundamental freedoms, individual rights and the rule of law consistent with Egypt’s international commitments.”

But the White House was notably silent after it had earlier this week extolled the emerging relationship between President Obama and Mr. Morsi and credited a series of telephone calls between the two men with helping to mediate the cease-fire in Gaza.

For Mr. Morsi, who seemed to be saying to the nation that it needed to surrender the last checks on his power in order to save democracy from Mubarak-era judges, the challenge was to convince Egyptians that the ends justified his means.

But even as he tried, thousands of protesters marched to condemn his decision. Clashes broke out between the president’s supporters and his critics, and near Tahrir Square, the riot police fired tear gas and bird shot as protesters hurled stones and set fires.

Since Thursday, when Mr. Morsi issued the decree, the president and his supporters have argued that he acted precisely to gain the power to address the complaints of his critics, including the families of protesters killed during the uprising and its aftermath.

By placing his decisions above judicial review, the decree enabled him to replace a public prosecutor who had failed to win convictions against senior officers implicated in the killings of protesters.

The president and his supporters also argued that the decree insulated the Constituent Assembly, which is drafting the constitution, from meddling by Mubarak-era judges.

Since Mr. Mubarak’s ouster, courts have dissolved Parliament, kept a Mubarak loyalist as top prosecutor and disbanded the first Assembly.

But by ending legal appeals, the decree also removed a safety valve for critics who say the Islamist majority is dominating the drafting of the constitution.

Mayy El Sheikh contributed reporting from Cairo, and Helene Cooper from Washington.

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NFL to examine replay rule from Lions-Texans game

NEW YORK (AP) — The rule that negated using video replay to confirm a Houston Texans touchdown "may be too harsh" and will be re-examined immediately, NFL director of football operations Ray Anderson said Friday.

Anderson, also co-chairman of the competition committee that suggests rules changes to the owners, said a change could come this year. The NFL traditionally resists changing rules during a season.

"We will certainly discuss the rule with the competition committee members, as we do all situations involving unique and unusual circumstances, and determine if we feel a change should be recommended to ownership," Anderson said in a statement.

"Not being able to review a play in this situation may be too harsh, and an unintended consequence of trying to prevent coaches from throwing their challenge flag for strategic purposes in situations that are not subject to a coaches' challenge."

Anderson added the NFL is not bound by past events when a rule is proved to have loopholes, and that a 15-yard penalty for throwing the challenge flag on a play that is automatically reviewed might be enough. For now, throwing the challenge flag also eliminates the use of replay. All scoring plays otherwise are reviewed.

Justin Forsett's third-quarter 81-yard run in the Texans' 34-31 overtime victory at Detroit on Thursday initially was ruled a touchdown, although replays clearly showed his knee and elbow touched the turf when he was hit by Lions defenders. Detroit coach Jim Schwartz challenged, resulting in a 15-yard unsportsmanlike conduct penalty and the negated use of video replay.

"I overreacted," Schwartz acknowledged. "And I cost us."

In 2011, instant replay rules were changed to have the replay official initiate a review of all scoring plays. The rule stated that a team is prevented from challenging a play if that team commits a foul that prevents the next snap, or if a challenge flag is thrown when an automatic review would take place. A 15-yard unsportsmanlike conduct penalty is assessed as well as the elimination of the replay review for the play.

But, as Anderson noted, getting the calls right is paramount and that the league may have overlooked the scenario that occurred in Detroit.

Anderson also said the play in which Lions defensive tackle Ndamukong Suh kicked Texans quarterback Matt Schaub in the groin will be reviewed. He called the play "out of the ordinary."

Suh could face a suspension if he is found to have intentionally kicked Schaub. A year ago on Thanksgiving, Suh was ejected for stomping on the right arm of Green Bay offensive lineman Evan Dietrich-Smith and subsequently was suspended for two games.

Suh has been fined in previous seasons for roughing up quarterbacks Andy Dalton, Jay Cutler and Jake Delhomme.

Similar incidents to the replay flap, but not involving scores happened last season in San Francisco's win, coincidentally at Detroit, and last week when the Falcons beat Arizona.

The rule was adopted in part because of a situation in a Redskins-Giants game in December 2010.

Officials on the field ruled a fumble recovered by the Giants, and the ball was made ready for play. But Washington veteran linebacker London Fletcher kicked the ball and was called for delay of game. While the penalty was being enforced, Washington challenged the ruling of a fumble.

The competition committee felt that a team could benefit from committing a penalty in that situation, giving it more time to challenge a play. It was decided that the new rule would also apply when a team throws the challenge flag on a play that can't be challenged — including scoring plays, turnovers, when the team is out of challenges or timeouts, and inside the final two minutes of a half or game, or in overtime.

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New Zealand Wants a Hollywood Put on Its Map

WELLINGTON, New Zealand — Standing by his desk in New Zealand’s distinctive round Parliament building, known locally as the Beehive, Prime Minister John Key proudly brandished an ornately engraved sword. It was used, he said, by Frodo Baggins, the protagonist of the “Lord of the Rings” trilogy, and in the films it possesses magical powers that cause it to glow blue in the presence of goblins.

“This was given to me by the president of the United States,” said Mr. Key, marveling that President Obama’s official gift to New Zealand was, after all, a New Zealand product.

In Mr. Key’s spare blond-wood office — with no goblins in sight — the sword looked decidedly unmagical. But it served as a reminder that in New Zealand, the business of running a country goes hand in hand with the business of making movies.

For better or worse, Mr. Key’s government has taken extreme measures that have linked its fortunes to some of Hollywood’s biggest pictures, making this country of 4.4 million people, slightly more than the city of Los Angeles, a grand experiment in the fusion of film and government.

That union has been on enthusiastic display here in recent weeks as “The Hobbit: An Unexpected Journey,” the first of three related movies by the director Peter Jackson, approached its world premiere on Wednesday in Wellington (and on Dec. 14 in the United States). Anticipation in New Zealand has been building, and there are signs everywhere of the film’s integration into Kiwi life — from the giant replica of the movie’s Gollum creature suspended over the waiting area at Wellington Airport to the gift shops that are expanding to meet anticipated demand for Hobbit merchandise (elf ears, $14).

But the path to this moment has been filled with controversy. Two years ago, when a dispute with unions threatened to derail the “Hobbit” movies — endangering several thousand jobs and a commitment of some $500 million by Warner Brothers — Mr. Key persuaded the Parliament to rewrite its national labor laws.

It was a breathtaking solution, even in a world accustomed to generous public support of movie projects, and a substantial incentive package was included: the government agreed to contribute $99 million in production costs and add $10 million to the studio’s marketing budget. And its tourism office will spend about $8 million in its current fiscal year, and probably more in the future, as part of a promotional campaign with Time Warner that is marketing the country as a film-friendly fantasyland.

For a tiny nation like New Zealand, where plans to cut $35 million from the education budget set off national outrage earlier this year (and a backtrack from the government), the “Hobbit” concessions were difficult for many to swallow, especially since the country had already provided some $150 million in support for the three “Lord of the Rings” movies.

Now, even amid the excitement of the “Hobbit” opening, skepticism about the government’s film-centric strategy remains. And recently it has become entangled with new suspicions: that Mr. Key’s government is taking cues from America’s powerful film industry in handling a request by United States officials for the extradition of Kim Dotcom, the mogul whose given name was Kim Schmitz, so he can face charges of pirating copyrighted material.

New Zealand’s political scene erupted in September, as Mr. Key publicly apologized to Mr. Dotcom for what turned out to be illegal spying on him by the country’s Government Communications Security Bureau. The Waikato Times, a provincial paper, taunted Mr. Key, accusing him of making New Zealand the “51st state,” while others suggested that a whirlwind trip by Mr. Key to Los Angeles in early October was somehow tied to the Dotcom case.

“No studio executive raised it with me,” Mr. Key said in an interview last month. He spoke the day after a private dinner where he lobbied executives from Disney, Warner Brothers, Fox and other companies for still more New Zealand film work, with Mr. Jackson, a New Zealander, joining by video link.

Mr. Key has been sharply criticized for cozying up to Mr. Jackson in what some consider unseemly ways. Last year, a month before elections in which he and his National Party were fighting to keep control of the government, Mr. Key skipped an appointment with Queen Elizabeth II in Australia to visit the Hobbiton set. He also interviewed Mr. Jackson on a radio show, prompting an outcry from the opposition.

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Inquiry Sought in Death in Ireland After Abortion Was Denied

DUBLIN — India’s ambassador here has agreed to ask Prime Minister Enda Kenny of Ireland for an independent inquiry into the death of an Indian-born woman last month after doctors refused to perform an abortion when she was having a miscarriage, the lawyer representing the woman’s husband said Thursday.

The lawyer, Gerard O’Donnell, also said crucial information was missing from the files he had received from the Irish Health Service Executive about the death of the woman, Savita Halappanavar, including any mention of her requests for an abortion after she learned that the fetus would not survive.

The death of Dr. Halappanavar, 31, a dentist who lived near Galway, has focused global attention on the Irish ban on abortion.

Her husband, Praveen Halappanavar, has refused to cooperate with an investigation being conducted by the Irish health agency. “I have seen the way my wife was treated in the hospital, so I have no confidence that the H.S.E. will do justice,” he said in an interview on Wednesday night on RTE, the state television broadcaster. “Basically, I don’t have any confidence in the H.S.E.”

In a tense debate in the Irish Parliament on Wednesday evening, Robert Dowds of the Labour Party said Dr. Halappanavar’s death had forced politicians “to confront an issue we have dodged for much too long,” partly because so many Irish women travel to Britain for abortions.

“The reality is that if Britain wasn’t on our doorstep, we would have had to introduce abortion legislation years ago to avoid women dying in back-street abortions,” he said.

After the debate, the Parliament voted 88 to 53 against a motion introduced by the opposition Sinn Fein party calling on the government to allow abortions when women’s lives are in danger and to protect doctors who perform such procedures.

The Irish president, Michael D. Higgins — who is restricted by the Constitution from getting involved in political matters — also made a rare foray into a political debate on Wednesday, saying any inquiry must meet the needs of the Halappanavar family as well as the government.

In 1992, the Irish Supreme Court interpreted the current law to mean that abortion should be allowed in circumstances where there was “a real and substantial risk to the life of the mother,” including the threat of suicide. But that ruling has never been codified into law.

“The current situation is like a sword of Damocles hanging over us,” Dr. Peter Boylan, of the Irish Institute of Obstetricians and Gynecologists, told RTE last week. “If we do something with a good intention, but it turns out to be illegal, the consequences are extremely serious for medical practitioners.”

Dr. Ruth Cullen, who has campaigned against abortion, said that any legislation to codify the Supreme Court ruling would be tantamount to allowing abortion on demand and that Dr. Halappanavar’s death should not be used to make that change.

Dr. Halappanavar contracted a bacterial blood infection, septicemia, and died Oct. 28, a week after she was admitted to Galway University Hospital with severe back pains. She was 17 weeks pregnant but having a miscarriage and was told that the fetus — a girl — would not survive. Her husband said she asked several times for an abortion but was informed that under Irish law it would be illegal while there was a fetal heartbeat, because “this is a Catholic country.”

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With Cease-Fire Joy in Gaza, Palestinian Factions Revive Unity Pledges

Tyler Hicks/The New York Times

After the Cease-Fire:
Palestinians and Israelis returned to a semblance of normal life after eight days of lethal conflict between Israel and Hamas.

GAZA — Palestinians erupted in triumphant celebrations here on Thursday, vowing new unity among rival factions and a renewed commitment to the tactic of resistance, while Israel’s leaders sought to soberly sell the achievements of their latest military operation to a domestic audience long skeptical of cease-fire deals like the one announced the night before.

After eight days of intense Israeli shelling from air and sea that killed 162 Gazans, including at least 30 militant commanders, and flattened many government buildings and private homes, people poured onto the bomb-blasted streets, beaming as they shopped and strolled under the shield of the cease-fire agreement reached Wednesday in Cairo. The place was awash in flags, not only the signature green of the ruling Hamas party but also the yellow, black and red of rivals Fatah, Islamic Jihad and the Popular Front for the Liberation of Palestine, a rainbow not visible here in years.

Despite the death and destruction, Hamas emerged emboldened, analysts said, not only because its rockets had landed near Tel Aviv and Jerusalem, but also from the visits and support by Arab and Muslim leaders, potentially resetting the balance of power and tone in Palestinian politics, as leaders from various factions declared the peace process dead.

“The blood of Jabari united the people of the nation on the choice of jihad and resistance,” Ismail Haniya, the Hamas prime minister, declared in a televised speech, referring to the commander Ahmed al-Jabari, killed in an Israeli airstrike at the beginning of the operation last week. “Resistance is the shortest way to liberate Palestine.”

There were neither celebrations nor significant protests across the border in Israel, where people in southern cities passed the first day in more than a week without constant sirens signaling incoming rockets sending them to safe rooms. Instead, an uneasy, even grim calm set in. The military announced that an officer, Lt. Boris Yarmulnik, 28, had died from wounds sustained in a rocket attack the day before, bringing the death toll on the Israeli side to six, four of them civilians. The Israeli authorities announced several arrests, including of an Arab Israeli citizen, in a bus bombing in Tel Aviv on Wednesday that revived memories of the violence from the last Palestinian uprising.

But there was collective relief in Israel as thousands of army reservists, sent to the Gaza border ahead of a possible ground invasion, gradually began returning home. With national elections eight weeks away, Israeli politicians tried to showcase accomplishments without raising expectations.

“It could last nine months or it could last nine weeks,” Defense Minister Ehud Barak said of the cease-fire. “When it does not last, we will know what to do. We see clearheadedly the possibility that we will have to do this again.”

And so it went on the day after the latest round in the decades-old Israeli-Palestinian conflict. What was widely heralded as a game changer by Palestinian politicians and independent analysts alike was viewed by Israeli officials and commentators as a maintenance mission that had succeeded in its stated goals: restoring quiet after months of intensifying rocket fire, and culling the weapons cache of Gaza’s armed groups.

Details of the cease-fire agreement announced Wednesday by Secretary of State Hillary Rodham Clinton and the Egyptian foreign minister remained unclear. Both sides pledged to stop the violence, and Palestinians say Israel will loosen its restrictions on fishing off Gaza’s Mediterranean coastline and farming along its northern and eastern borders. But the critical question of whether the border crossings would be open wide for people and commerce was not fully addressed, with only a vague promise that discussions would ensue after 24 hours. The exact agenda, time, location and even participants in these discussions have not been announced.

At the same time, Mustafa Barghouti, a West Bank leader who has spent the past several days in Gaza, said the Palestinian factions had agreed to meet in Cairo for another round of unity talks in the next few days, as President Mahmoud Abbas of the Palestinian Authority prepares to take his case for observer-state status to the United Nations next week. Though Hamas and Fatah, the party Mr. Abbas leads, have signed four reconciliation agreements in the five years since Hamas took control of Gaza after winning elections here, Mr. Barghouti said this time was different.

“Hamas is stronger, of course, and Abbas is having to change his line because negotiations failed,” he said after appearing with Mr. Haniya at a rally. “This time Israel felt the heat of the Arab Spring, and Gaza was not isolated; the whole Arab world was here. The road is open for unity.”

First, though, Hamas faces an enormous rebuilding effort, with at least 10 of its government buildings — including the ministries of culture, education and interior; the prime minister’s headquarters; and police stations — now reduced to rubble littered with payroll sheets and property tax rolls. A spokesman said that the government kept most records on laptops, but the Abu Khadra, a huge complex of constituent services, is gone.

Dr. Hassan Khalaf, director of Al Shifa Hospital, which was not attacked, dismissed the worry. “We can gather under the sky under a tent,” he said. “They can come to my house.”

In Jerusalem, Dan Meridor, a senior minister of intelligence and atomic energy, told reporters that Israel had “used force in a very moderate and measured way.” He said the military had struck 10 times the number of targets compared with the previous government’s invasion of Gaza four years ago but killed far fewer people than during that invasion: slightly over 10 percent. One of the main military achievements, he said, was the destruction of most of the long-range Iranian Fajr-5 missiles in Gaza.

Jodi Rudoren reported from Gaza, and Isabel Kershner from Jerusalem. Fares Akram contributed reporting from Gaza, and Tamir Elterman from Sderot, Israel.

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Brady, high-scoring Patriots embarrass Jets 49-19

EAST RUTHERFORD, N.J. (AP) — Tom Brady and the New England Patriots put this game — and the New York Jets' ugly season — away early.

At least it was competitive for a quarter. By halftime, it was a big-time laugher.

Brady threw three touchdown passes and ran for a score as the Patriots thoroughly embarrassed the Jets with a 35-point second quarter in a 49-19 victory Thursday night.

After a scoreless opening quarter, the Patriots (8-3) went on a touchdown spree despite holding the ball for only 2:14 as they took advantage of several mistakes by Rex Ryan's hapless Jets (4-7). Their 35 second-quarter points tied for the fourth-most in a quarter in NFL history.

Fans were chanting for Tim Tebow to play before the second quarter of this Thanksgiving showdown was over, and booing as the team left the MetLife Stadium field at halftime.

New England, which beat Indianapolis 59-24 on Sunday, scored four touchdowns in just over 6 minutes — including three in a jaw-dropping 52-second span — helping Bill Belichick become the eighth coach in NFL history with 200 career victories, including the playoffs.

Julian Edelman returned a fumble for a touchdown and caught a 56-yard pass for a score before leaving with a head injury. Wes Welker and Shane Vereen had touchdown catches, Steve Gregory returned a fumble for a score, and Stevan Ridley ran for a touchdown.

The Patriots improved to 19-0 in the second half of the season since 2010. They were 8-0 that year and last year, and are 3-0 this season after the midway point.

Meanwhile, the Jets allowed their most points since giving up 52 to Miami in the 1995 season opener, and will likely have to win all of their remaining five games to even have an outside chance at the postseason.

New England was without star tight end Rob Gronkowski, out a few weeks after breaking his left forearm in the win Sunday against Indianapolis. They didn't need him — not with the Jets fumbling and bumbling around.

Brady finished 18 of 28 for 323 yards before leaving with 2 minutes left in the game. He reached 3,000 yards passing for the 10th time, becoming one of six players to accomplish the feat. He also passed Dan Fouts for 10th place on the career passing list.

Tight end Aaron Hernandez returned after missing three games with a sprained ankle and had two catches for 36 yards.

New York's Mark Sanchez was 26 of 36 for 301 yards with a touchdown and an interception. Tebow didn't play at all — nursing sore ribs that made him questionable for the game — and stood on the sideline with a cap on throughout despite the occasional chants for him to get some snaps.

It looked as though this one might be a close one as both teams missed opportunities to score in the opening quarter, including Stephen Gostkowski being wide left on a 39-yard field goal attempt. The Jets were hoping to boost their playoff hopes and keep some momentum going after a 27-13 victory at St. Louis last Sunday that snapped a three-game skid.

But this one got ugly in a hurry.

The Patriots jumped on a poor decision by Sanchez, who ruined a nice drive by keying in on Jeremy Kerley on second-and-6 from the 23. Gregory read the play the whole way for an easy interception.

Brady then led the Patriots on a 15-play, 84-yard drive that was capped on Welker's 3-yard touchdown catch on the first play of the second quarter.

New England was helped by a questionable neutral- zone infraction by Muhammad Wilkerson on third-and-4 from the Jets 49, and a facemask penalty on Ellis Lankster on second-and-10 from the 32 that gave the Patriots the ball at the 9.

The Jets made another costly mistake on their next possession when Shonn Greene fumbled on fourth-and-inches from the Patriots 31 and Gregory recovered.

Brady threw a swing pass on first down to Vereen, who zipped down the left sideline untouched for an 83-yard touchdown that made it 14-0 with 9:43 remaining in the opening half.

The Patriots were back in the end zone moments later when Sanchez fumbled on second down as he fell when right guard Brandon Moore's backside slammed into him. Gregory picked up the ball and ran it 32 yards for a score to put New England up 21-0.

And, the Patriots weren't done.

Joe McKnight, one of the league's top returners, took the ensuing kickoff and fumbled it on a hit by Devin McCourty. Edelman picked up the ball and scooted 22 yards for yet another score, giving New England a 28-0 lead.

Edelman caught a 56-yard pass from Brady to make it 35-0 with 3:08 left in the first half. The receiver left the game early in the third quarter on a helmet-to-helmet hit by LaRon Landry on an end-around during which he fumbled.

Jets wide receiver Clyde Gates also left the game with a head injury in the second quarter after a hard hit from Kyle Arrington.

Nick Folk kicked a 32-yard field goal with 2 seconds left in the half — and a single firework popped above the stadium.

Ridley was called for a chop block in the end zone midway through the third quarter, giving the Jets a safety. Bilal Powell had a 4-yard touchdown run, his third in two games, to make it 35-12 late in the period.

Brady's 1-yard run early in the fourth quarter gave the Patriots a 42-12 lead, and Ridley scored on a 9-yard run less than a minute later.

Dustin Keller caught a 1-yard scoring toss from Sanchez with just over 2 minutes left — long after most of the stadium had emptied.

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News Analysis: Case Casts a Shadow on a Hedge Fund Mogul

In 2010, the billionaire hedge fund manager Steven A. Cohen gave a rare interview to Vanity Fair. He said that he wanted to combat persistent rumors that his firm, SAC Capital Advisors, routinely violated securities laws by trading on confidential information.

“In some respects I feel like Don Quixote fighting windmills,” Mr. Cohen said at the time. “There’s a perception, and I’m trying to fight that perception.”

Federal prosecutors only heightened that perception on Tuesday, bringing a criminal case against a former SAC employee in what Preet Bharara, the United States attorney in Manhattan, who brought the charges in Federal District Court in Manhattan, called the most lucrative insider trading scheme ever charged.

And for the first time, the evidence suggests that Mr. Cohen participated in trades that the government says illegally used insider information — though prosecutors have not said that Mr. Cohen himself knew the information was confidential, and he has not been charged.

Any prosecution of Mr. Cohen would most likely hinge on the cooperation of Mathew Martoma, the former SAC employee charged in the case. Mr. Bharara said in the charges that Mr. Martoma obtained secret data from a doctor about clinical trials for an Alzheimer’s drug being developed by the companies Elan and Wyeth. The information enabled SAC to avoid losses of almost $194 million on the stocks, which it sold and then bet against, reaping $83 million in profit — a total benefit to the firm of more than $276 million. SAC executed the trades shortly after Mr. Martoma e-mailed Mr. Cohen and said he needed to discuss something important.

As to Mr. Cohen’s potential culpability in the case, the crucial issue is what Mr. Martoma told Mr. Cohen that led SAC to quickly dump $700 million worth of stock. Did he provide his boss details on why he had turned sour on Wyeth and Elan? Specifically, did he share the leak about the drug trial’s negative results and identify the source of the secret information? Through a spokesman, he said he was confident he had acted appropriately.

It appears, for now, that Mr. Martoma will fight the charges. But the crucial question, as it relates to Mr. Cohen, is whether at some point Mr. Martoma will reverse course, admit to insider trading and agree to help the government build a case against his former boss. Without Mr. Martoma’s cooperation, it is unlikely that the prosecutors have enough evidence to charge Mr. Cohen.

“This has all the markings of a case where the government goes after the smaller fish and then pressures them to flip so they can get the whale,” said Bradley D. Simon, a criminal defense lawyer and former federal prosecutor in New York.

The government has several weapons for its effort to persuade Mr. Martoma to agree to a plea, including the stiff sentences for insider trading. Under the federal sentencing guidelines, Mr. Martoma could receive more than 15 years in prison, a term that could be reduced — or avoided altogether — if he agreed to testify against Mr. Cohen.

F.B.I. agents arrested Mr. Martoma, 38, early Tuesday morning at his home in Boca Raton, Fla., a nearly 8,000-square-foot Mediterranean-style mansion on the grounds of the elite Royal Palm Yacht and Country Club. He lives there with his wife, a pediatrician, and three children. A graduate of Duke University and Stanford University’s business school, Mr. Martoma is expected to make an appearance in Federal District Court in Manhattan Monday morning.

Described by a former colleague as low-key and cerebral, Mr. Martoma is one of scores of traders who have earned millions of dollars working under Mr. Cohen and feeding him their best investment ideas. He joined SAC in 2006. In 2008, the year he participated in the alleged illegal trade, the firm paid Mr. Martoma a $9.3 million bonus. But SAC fired him in 2010 after two years of subpar performance.

Charles A. Stillman, a lawyer for Mr. Martoma, said on the day of his arrest, “What happened today is only the beginning of a process that we are confident will lead to Mr. Martoma’s full exoneration.”

It is no secret that the government has been circling Mr. Cohen since the middle of last decade, when it began its crackdown on insider trading, an investigation that has resulted in more than 70 criminal charges. Prosecutors have already linked five former SAC employees to insider trading while at the fund — securing three convictions — though none of those cases connected Mr. Cohen to any illicit activity. But the complaint filed on Tuesday puts Mr. Cohen at the center of the supposed improper conduct.

Mr. Cohen, 56, is a legend on Wall Street, having amassed a multibillion-dollar fortune by posting phenomenal investment returns averaging about 30 percent over the last two decades. Starting with a $25 million grubstake, SAC now manages about $13 billion and has 900 employees across the globe. Mr. Cohen has also emerged as a major force in the art world, owning an eclectic collection that includes works by Picasso, Warhol and Cézanne.

Prosecutors have constructed their case against Mr. Martoma, and increased the pressure on him, by securing the cooperation of Dr. Sidney Gilman, the doctor who supposedly leaked to him the Alzheimer’s drug’s trial data. The case against Mr. Martoma will depend largely on Dr. Gilman’s credibility as a witness.

Dr. Gilman, 80, a neurologist at the University of Michigan medical school, was hired by Elan and Wyeth to monitor the trial’s safety, which gave him access to secret information about the results. SAC retained Dr. Gilman as a consultant and paid him about $108,000.

At first, Dr. Gilman’s reports on the trial’s progress were positive, and SAC built a position in the two drug makers worth approximately $700 million, according to prosecutors. But then, on July 17, 2008, Dr. Gilman told Mr. Martoma that there were problems with the drug, the government said.

A few days later, Mr. Martoma e-mailed Mr. Cohen that he needed to discuss something “important,” and the two then spoke for 20 minutes, according to court filings. Over the next four days, at Mr. Cohen’s direction, SAC Capital jettisoned its entire position in the two stocks and then placed a big negative bet on the drug makers, the government said.

On July 30, after disclosure of the poor trial results, shares of Elan and Wyeth sank. According to the prosecutors’ calculations, SAC would have lost about $194 million had it kept the stock; taking a short position instead generated profits of about $83 million.

Dr. Gilman and the Justice Department have entered into a nonprosecution agreement under which he will cooperate in exchange for not being criminally charged.

Thus far, any potential evidence against Mr. Cohen is entirely circumstantial. The government’s complaint includes e-mails about secretly selling the Elan and Wyeth shares through esoteric methods like algorithms and dark pools. But that is common practice among large, sophisticated funds that do not want to alert competitors or move the stock too much. Moreover, while SAC dumped its large positions in the two stocks quickly — raising the question of what prompted it to do so — Mr. Cohen is known for a rapid-fire trading style. He frequently moves aggressively in and out of stocks while processing gobs of information fed to him by his underlings.

It would be difficult for a jury to infer anything incriminating just from the way these trades were executed.

The government in this case also lacks the powerful wiretap evidence that it has used to convict dozens others, including Raj Rajaratnam, the head of the Galleon Group. Federal agents did wiretap Mr. Cohen’s home telephone for a short period in 2008, according to a person with direct knowledge of the investigation who spoke only on the condition of anonymity. But it is unclear whether the eavesdropping, which was first reported by The Wall Street Journal, yielded any fruit.

Even without incriminating wiretap evidence, the government has brought cases that rely almost entirely on witnesses testifying against their bosses.

One of those cases is now under way in federal court in Manhattan. Prosecutors are currently trying the former hedge fund portfolio managers Anthony Chiasson of Level Global Investors and Todd Newman of Diamondback Capital Management. Prosecutors say that the two were part of a conspiracy that made about $68 million illegally trading technology stocks.

The outcome of that trial is expected to depend largely on whether the jury believes the testimony of two cooperating witnesses who admitted to the conspiracy — Spyridon Adondakis and Jesse Tortora, former junior analysts at Level Global and Diamondback. The two say they shared secret information with the defendants. Defense lawyers have attacked the witnesses’ credibility, accusing them of lying to avoid prison.

That case, too, has strong ties to SAC. Mr. Chiasson and his co-founder were star traders under Mr. Cohen before starting the now-defunct Level Global. And the owners of Diamondback are both former SAC employees; one is Mr. Cohen’s brother-in-law, Richard Schimel. Diamondback, which continues to operate, has not been accused of wrongdoing.

“SAC’s extraordinary profits have always been something of a market mystery,” said Sebastian Mallaby, the author of “More Money Than God,” a book on the history of hedge funds. “As more and more lawsuits implicate former SAC traders, we may at last understand where SAC’s profits came from.”

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National Briefing | West: California: Toll Rises From Poisonous Mushroom Soup

A third person has died from eating soup made from poisonous mushrooms at a senior care center, authorities said Wednesday. The person’s name was not released. Three other people were sickened at the Gold Age Villa in Loomis. The caretaker who prepared the soup, who was among those sickened, apparently picked them from the backyard of the six-bed facility and did not know they were poisonous.

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