Published by Money Matters

Your child has finally finished college and started his/her first full-time job. What is the most important financial advice you can give your child?

The first piece of financial advice you should give to your child is that they participate in their 401(k) plan as soon as they are eligible. The quality of your child’s retirement will largely be determined by the amount of money he/she saves, and a 401(k) plan is a great place for him/her to start. Before marriage, a new home, or other obligations consume his/her entire paycheck, get him/her into the habit of saving. Since the contributions are deducted before he/she even sees his/her paycheck, it’s a great way to get him/her into the habit of saving on a regular basis.

Having trouble convincing him/her that this is a good strategy? Perhaps some numbers will make the point. Assume your child starts contributing to his/her 401(k) plan at age 25, contributing $6,000 per year (substantially below the maximum contribution in 2010 of $16,500), with matching employer contributions of $3,000. If he/she earns 8% annually, he/she could have a balance of $2,331,509 at age 65, before the payment of any taxes. What if he/she waits until age 35 to start contributing?

At age 65, the balance could be $1,019,549, still a substantial amount, but $1,311,960 lower than if he/she started participated in their 401(k) plan at age 25. (This example is provided for illustrative purposes only and is not intended to project the performance of a specific investment vehicle.)

What if your child still isn’t convinced? Consider reimbursing him/her, as part of your annual gift tax exclusion, for any 401(k) contributions. You can reimburse the entire amount or offer to make a partial reimbursement.

Don’t let your child procrastinate because there are too many decisions to be made. Just encourage him/her to start contributing, reassuring him/her that none of the investment decisions is permanent. He/she can still review contribution levels, investment choices, beneficiary designations, and other matters at a later date.

If your child has the option to contribute to a regular 401(k) plan or a Roth 401(k) plan, you may want to suggest contributing to the Roth 401(k). Employer matching contributions will still be made to a regular 401(k) plan, but your child’s contributions can go to the Roth 401(k). Your child won’t get a current tax break for contributions made, but he/she will owe no taxes on the contributions or any earnings when withdrawals are made. This can make a huge difference in the amount of money available for retirement.

What if your child doesn’t have a 401(k) plan at work? Encourage him/her to contribute to an individual retirement account (IRA). Although contributions are limited to $5,000 in 2010 compared to $16,500 for 401(k) plans, IRAs are still a good way to save for retirement.

The advice sounds simple enough — to force yourself to save regularly, treat those savings as a bill to yourself and pay that bill first every month. But when you’re faced with a stack of bills that includes your mortgage payment, your car lease, and groceries to feed the kids, you’re likely to skip paying yourself for at least another month. Unfortunately, those months can add up with little in the way of savings. If you’re looking for ways to start paying yourself first, consider the following:

Reduce spending, diverting those reductions to savings. One way to accomplish this is to cut back on your spending, perhaps reducing your expenditures for dining out, traveling, clothing, or entertainment. But for many people, this feels too much like sacrifice, making it difficult to stick with this strategy.

Another alternative is to find ways to spend less for the same items. For instance, get quotes for your car and home insurance from several companies, placing any premium reductions in savings. Or find ways to reduce your borrowing costs. Instead of paying higher interest rates on credit cards, consider paying those balances with a home-equity loan. Not only will the interest rate typically be lower, but the interest may be tax deductible if your balance is less than $100,000. Just make sure any reductions in your costs go directly to your savings.

Save all unexpected income. Immediately save any money from tax refunds, bonuses, cash gifts, and inheritances. Before you get used to any salary increases, put that raise into savings, possibly in your 401(k) plan.

Make saving automatic. Resolve to immediately set up an investment account that automatically deducts money from your bank account every month. Start out with small amounts that aren’t even noticeable. As you get used to saving on a regular basis, increase the amount periodically.

Another good alternative is to sign up for your company’s 401(k) plan. Not only will the amount be automatically withdrawn from your paycheck, but you won’t pay current income taxes on those contributions. (Keep in mind that any automatic investing plan, such as dollar cost averaging, does not assure a profit or protect against loss in declining markets. Because such a strategy involves periodic investment, consider your financial ability and willingness to continue purchases through periods of low price levels.)

Inflation has been tame for so long that it’s easy to forget how much it can affect your purchasing power over a long retirement. Over the past 10 years, inflation, as measured by the consumer price index, has averaged 2.5% (Source: Bureau of Labor Statistics, 2009). At 2.5% inflation, $1 is worth 78¢ after 10 years, 61¢ after 20 years, and 48¢ after 30 years. Thus, you need to look for strategies to lessen inflation’s impact during retirement:

Use a conservative inflation rate when planning for retirement. You don’t want to run out of money during retirement. So when calculating how much to accumulate by retirement age and how much to withdraw during retirement, use a conservative inflation rate. While inflation has averaged 2.5% over the past 10 years, it has averaged 3.9% over the past 30 years (Source: Bureau of Labor Statistics, 2009).

Determine how much of your retirement income is indexed for inflation. Social Security benefits are currently indexed for inflation, but most defined-benefit pension plans do not make adjustments for inflation. Thus, other income sources will have to fill an increasing income gap over time.

Invest in tax-advantaged retirement vehicles. Look into 401(k) plans, individual retirement accounts, and other retirement vehicles. While each has different rules for taxing contributions and earnings, all provide some tax-free or tax-deferred benefits. Since you aren’t paying income taxes on earnings during the years, that typically means you’ll have a larger balance at retirement.

Choose investments carefully. To avoid losing purchasing power, your after-tax rate of return should be higher than the inflation rate. Review your investments annually to make sure you aren’t losing purchasing power.

BOSTON – April 8, 2010 – The Patrick-Murray Administration’s Office of Consumer Affairs and Business Regulation today announced that the Division of Banks has issued cease-activity directives to 33 companies for suspected unlicensed financing activity. Dealers who sell motor vehicles in Massachusetts under a retail installment contract and hold the contract, typically referred to as “Buy Here, Pay Here,” are required to be licensed.

The action by the Division of Banks focuses on car dealers who were giving loans without a license. Licensed dealers must adhere to maximum interest rate limits and inform customers of loan terms in an appropriate manner. The licensing process also includes a background check and subjects the licensee to examination by the Division of Banks, creating further protections for consumers.

Additionally, MassDOT’s Registry of Motor Vehicles Division issued a new policy statement announcing that it will not allow a motor vehicle dealer who sells vehicles under a retail installment contract and holds the contracts to obtain a “lien code” unless the dealer is in possession of the required license from the Division of Banks. Registrar Rachel Kaprielian, advised so called “Buy Here-Pay Here” dealers to be particularly vigilant with regard to the licensing requirement.

“My office strongly urges dealers to carefully evaluate and consult with the Division of Banks to determine whether a license is required prior to requesting a lien code from the Registry. We will forward the name of any dealer who already has a lien code from the RMV without a license to the Division of Banks for investigation.” Kaprielian said.

“This collaborative effort between the Division of Banks and the Registry of Motor Vehicles will allow us to better protect Massachusetts consumers from excessive fees, finance charges and wrongful repossessions,” said Undersecretary of Consumer Affairs and Business Regulation Barbara Anthony. “By ensuring these companies are properly licensed and regulated, they will be subject to regular on-site examinations to determine compliance with various consumer protection laws.”

Currently the Division of Banks licenses 69 motor vehicle sales finance companies. The list of licensees may be found at www.mass.gov/dob by clicking on “Find a Licensee.”
Anyone with additional questions regarding the licensing of motor vehicle sales finance companies may contact the Division of Banks’ Consumer Hotline at 1-800-495-BANK (2265) Ext. 501. The RMV’s Title Division may be reached at (617) 351-9503.

It’s an election year and jobs are on every candidate’s agenda. In both Washington and Massachusetts, new jobs bills are being debated. We hear about “green” jobs and the growing job sectors in health care, education and business services. But, what we don’t hear enough about is how to make sure we have a workforce, trained and ready to take these jobs on.

Today, 45% of jobs in Massachusetts are “middle-skilled,” requiring more than a high school diploma but less than a four-year degree. We must insure that our labor force has the skills to be successful in these jobs. Employers in our major industries often indicate that it’s difficult to find people who are well-prepared to work in their sectors even in the midst of a recession. Developing strategies to address our middle skills deficiency is critical to our state’s economic growth.

That’s why SkillWorks has made addressing the middle skills crisis a priority. SkillWorks is a ten-year $25 million investment partnership to improve workforce development in Boston and in the Commonwealth. Working with foundations, government, community organizations and employers, SkillWorks is investing in training programs, preparing people for and connecting them to post-secondary education, supporting public policy efforts to create better pathways to post-secondary training, and prioritizing its efforts in growing sectors in our state’s economy.

During the initiative’s first five years, SkillWorks’ Partnerships provided training for over 3,000 people: of which 1,100 received wage increases, over 600 found new employment in target sector jobs, and over 200 were promoted. Over 30 local employers participated in this effort, with many of them increasing their own investments in workforce development. Working with state policymakers, Skillworks has also been able to leverage new public resources through the Workforce Competitiveness Trust Fund, now a national model for sector based job training.

From SkillWorks’ experience, a major barrier to advancement for many workers is the lack of a post-secondary credential or certificate, and it’s not because people are not trying. A recently released report by the national Demos Think Tank found that almost 40% of those who enroll in occupational certificate programs fail to earn a credential of any type within six years.

We know that at least two major obstacles contribute to this problem. First, many students lack essential academic preparation for post-secondary study, and they end up wasting valuable time and money in remedial education classes that can take years to complete. If they can overcome this barrier, many adults face an additional hurdle of working to finance their education and living expenses while trying to keeping up with their studies part-time.

These part-time adult students have very few financial aid options. If they succeed the gains are substantial: those who are awarded certificates earn median annual salaries 27% greater than those who leave school with no post-secondary credential. And the salaries earned by those with community college certificates in engineering and health care are close to what bachelors degree holders in the social or natural sciences earn.

SkillWorks is partnering with Jewish Vocational Service and area health care employers, including Marina Bay Skilled Nursing and Rehabilitation Center, to tackle these challenges head on. Over the next three years, more than 200 of their employees will participate in college preparation; with extensive coaching, support and tuition assistance. More than 50 employees are currently on track to receive health care certificates and degrees, and ten already have.

As state policymakers seek to get unemployed workers back to work and provide opportunities for employers to grow their workforce, they need to focus on helping more workers attain post-secondary credentials. This work should include creating better bridges to post-secondary education; more financial aid options for part-time students; and a stronger community college system.

The benefits of one and two year credential programs are immediate and profound for both individual workers and our state’s economy. Our state’s economic growth depends on a workforce that’s trained and ready for 21st century jobs.

Written by: Loh-Sze Leung and Jerry Rubin. Loh-Sze Leung is the Director of SkillWorks. Jerry Rubin is the President and CEO of Jewish Vocational Service.

Mangingmoney.com recently asked an interesting quesion, “is 10% enough for retirement?”

A common rule of thumb when planning for retirement is to save 10% of your gross income during your working years. Since this rule of thumb has been around for a long time, it’s logical to question whether it’s still an appropriate guideline. Several trends suggest that it is probably on the low side:

• Fewer individuals are covered by defined-benefit plans. The 10% guideline anticipated that a retiree would receive a defined-benefit pension as well as Social Security benefits. But a substantial portion of the work force is no longer covered by a defined-benefit pension.

a defined benefit pension plan is a type of pension plan in which an employer promises a specified monthly benefit on retirement that is predetermined by a formula based on the employee’s earnings history, tenure of service and age, rather than depending on investment returns. It is ‘defined’ in the sense that the formula for computing the employer’s contribution is known in advance. In the United States, 26 U.S.C. § 414(j) specifies a defined benefit plan to be any pension plan that is not a defined contribution plan where a defined contribution plan is any plan with individual accounts. A traditional pension plan that defines a benefit for an employee upon that employee’s retirement is a defined benefit plan.1

The most common type of formula used is based on the employee’s terminal earnings. Under this formula, benefits are based on a percentage of average earnings during a specified number of years at the end of a worker’s career.

• The Social Security system will face increasing pressure in the future. Due to the unprecedented number of baby boomers that will be retiring in the near future, there will be fewer workers to pay the benefits for each retiree. By 2037, unless changes are made to the system, benefits will need to be reduced by approximately 25% to equal revenues collected (Source: Social Security Administration, 2009).

• Life expectancies are continuing to increase. Average retirement ages have been decreasing, while life expectancies have been increasing. Currently, at age 65, the average life expectancy is 82 years for a man and 85 years for a woman, compared to 78 years for a man and 81 years for a woman in 1950 (Source: Journal of Financial Planning, August 2008).

• Plans for retirement have changed. Another common retirement planning rule of thumb is that you’ll need 70% of preretirement income during retirement. However, that guideline assumed a relatively inactive retirement lifestyle. Increasingly, retirees view retirement as a time to travel extensively or engage in expensive new hobbies. Thus, more and more retirees are finding little change in their income needs after retirement.

All these trends point to the fact that future retirees will be responsible for providing more of their income for a longer period of time. Thus, you should consider higher, not lower, savings rates. While 10% of income may sound like a lot of money, consider how many years you expect to work compared to how many years will be spent in retirement. Assume you start working at age 22, work until age 62, and then die at age 82. Thus, you work 40 years and are retired for 20 years — for every two years you work, you need to support yourself for one year in retirement. If your retirement expenses don’t go down and you don’t have a defined-benefit pension, you’ll need to save significant sums to support yourself for that length of time.

Contrast the current situation with a typical scenario in 1950. At that time, the average retiree worked 47 years before retiring for nine years. Thus, that person worked over five years to support one year of retirement.

For many people, then, the answer may be to extend their working years. In the above example, if you wait until age 70 instead of age 62 to retire, you will work for 48 years and be retired for 12 years. Thus, you will work four years for every year of retirement. While preretirees may not have the mathematics down, many realize that working longer, rather than retiring earlier, may be the only way to ensure that they don’t run out of retirement funds. Almost all recent surveys of baby boomers indicate that the majority expect to work at least part-time during retirement.

These stark realities don’t mean that you can’t retire, just that you need to plan carefully. Thus, you should start saving as much as possible, as soon as possible, for your retirement. Waiting even a few years to start saving can substantially increase the annual amount you need to save.

Trying to gauge whether your retirement savings are on track? While there’s nothing like going through a thorough analysis, you can take a quick look by adding up all your retirement assets and multiplying that balance by 3% or 4%. These withdrawal percentages should ensure that your retirement assets last for several decades.

In the recent times, the Obama government as well as the private lenders have started considering principal reduction programs for homeowners who are underwater. However, the Internal Revenue Service (IRS) has issued a new advisory to taxpayers who would get such assistance for the lenders. Let’s check out how the principal reduction on underwater mortgages will affect the tax payers:

Loans on which the taxes are forgiven – Most people have the wrong opinion that the federal tax exclusion applies to all types of home loans. However, it is not so. It applies to mortgage balances on principal residence only. Second homes, rental or business property are excluded from the tax forgiveness.

Debt amount to be forgiven – The maximum debt which can be forgiven under the law is $2 million for married taxpayers filing jointly and $1 million for single filers.
When can you claim tax deductions?

There are certain grounds on which principal debt would be reduced. Principal reduction will be done by the lender only if the loan has been used to build, buy or improve one’s primary residence. If you’ve used the loan amount to pay off credit card bills, buy cars or invest in stocks, then it won’t be considered eligible for tax exclusion.

What happens after your taxes are forgiven by the lender?

After the lender forgives a part of your mortgage balance, the lender will issue an IRS Form 1099-C. This is a notice of “Cancellation of Debt” and this form is also sent to the IRS. The form shows the fair market value (FMV) of the property and the amount of debt discharged/forgiven by the lender.

How to claim tax exemptions on forgiven debt?

You will have to download IRS Form 982 from irs.gov and attach it to your tax return. However, this tax benefit is available till 2012.

When shouldn’t you claim tax exemption?

“You won’t be able to claim tax deductions if your property has been foreclosed upon by the lender or if you go for a short sale and lose money in the process. However, after the foreclosure if your lender forgives the balance amount, then you can file for an exemption from the IRS.” said Mortgagefit.com.

Pierce Mattie with the Fashion Rag has written good upcoming events synopsis of Rock Media’s Fashion Week. “RM Fashion Week is yet again taking over Miami Beach with another year of fashion revelry at the luxurious Eden Roc Renaissance Miami Beach. Celebs, VIP’s, and Fashionistas will all be out in full force as the social & fashion elite will command the stage from March 24th to March 27th during the 3rd Annual Rock Media Fashion Week.

Designers including Ina Soltani, Peace Love World, Keva by Keva J, Lila Nikole will be showcasing their collections. Also making a special appearance, Sebastian Visionary Artist, Lolene. The British Pop Singer is set to make her highly anticipated performance following the Krelwear presentation. Adding to the festivities, Jeanine Mason, season 5 winner of So You Think You Can Dance and a slew of surprise celeb guests, will only add to the sizzling after-parties that follow this annual four-day event collision of fashion, stars and music set against the tropical back-drop of this legendary resort. Miami Beach, the epicenter for style, fame and glamour and the home of Rock Media Fashion Week, has earned a reputation for introducing the hottest new designers to the hottest VIP’s. The 2010 Rock Media Fashion Week is certain to enlighten and entertain.

In an opportune shift, 2010 Rock Media Fashion Week will exclusively host many of its events at the aptly titled, Eden Roc Renaissance Miami Beach. With closing day festivities taking place at Vita Restaurant & Lounge. This stylish move will conveniently allow both Rock Media Fashion Week attendees and hotel guests to special access to the renowned beach oasis, showcasing a bevy of beautiful runway shows, The Rock Gift Lounge and chic cocktail parties, to play off the exotic Miami Beach nightlife scene.

Established fashion designers along with promising young talent will both be displayed during the presentation of A/W2010 and Cruise Resort collections throughout this invitation only four-day event. First time participant Ina Soltani said of her 2010 fall line, “I am thrilled and honored to be part of Rock Media Fashion Week as this will be the first showing of my new collection to press.”

“Rock Media Fashion Week was destined to take place at the Eden Roc Renaissance Miami Beach. Not only do both the resort and entertainment platform share similar names, both also act as innovative arenas for musicians and world-renowned designers to showcase their most beautiful and sought-after creations to the world,” said Scott Rosenblum, Founder, Rock Media & Entertainment. “2010 Rock Media Fashion Week is sure to set higher standards for talent, runway shows, exotic layouts, after-parties and more!”

2010 Rock Media Fashion Week is proudly sponsored by Sebastian Hair Care providing beauty & grooming products, Volvo featuring on-site displays, Crest Whitestrips which will provide product sampling, Contraband Hats, M2M damoreJon Natural Nail Care, NS Mineral Make-up, Sean Donaldson Salon providing cutting edge hair styling, Eden Roc Renaissance Miami Beach and Hachette Filipacchi Media U.S.”

According to a recent press release by Rock Media, “ROCK MEDIA’S Fashion Weeks’ consist of four-day events that celebrate the fusion of the fashion and music worlds into the top fashion event in the United States. The event showcases an intelligent, innovative platform for progressive, established, and emerging designers to show their collections to media, celebrities, national and international buyers, and select style makers while sponsors, advertisers and media entertain to the world.

Fashionistas, celebrities, VIPs and media from the United States and around the world converge at our fashion weeks unique and star studded venues for a unforgettable week of music, fashion and VIP events in New York, Miami Beach and Los Angeles several times a year.

Working with the best line-up of creative talent in the industry, ROCK MEDIA showcases a range of lines from emerging to top-established designer. The past list includes: Argyleculture by Russell Simmons, Richie Rich, Monarchy, b.michael, Abi Ferrin, D’Amore by Marceau, Lei Marco, Ella Bella, William Rast, Sean John,Perry Ellis, Dash & Smooch, Maya Swimwear, Marc by Marc Jacobs, Fredericks of Hollywood, Bullets4Peace, Ramona Larue by Ariane, Ella Bella Couture, KrelWare and many more.”

Schedule of Events – Rock Media Fashion Week at the Eden Roc Renaissance Miami Beach:

Wednesday, March 24th 2010

7:00pm
Ina Soltani

8:00pm
KEVA by Keva J

10:00pm
After Party at the Eden Roc Renaissance Miami Beach

Thursday, March 25th 2010

7:00pm
Art of Shade

8:00pm
Lila Nikole

9:00pm
Peace Love World by Alina Villasante

10:00pm
Krelwear followed by Sebastian Visionary Artist, Lolene

11:00pm
After Party at the Eden Roc Renaissance Miami Beach

Friday, March 26th 2010

7:00pm
Amilcar Ferrer

8:00pm
Ella Bella

9:00pm
Rock Revival

11:00pm
After Party at Vita Restaurant & Lounge

Saturday, March 27th 2010

8:00pm
Ramona La Rue at Vita Restaurant & Lounge

10:00pm
Rock Media Fashion Week Closing Party at Vita Restaurant & Lounge

A father and son have pleaded guilty to selling $1 million worth of counterfeit computer software through the Internet, in violation of criminal copyright infringement laws, Assistant Attorney General Lanny A. Breuer of the Criminal Division, U.S. Attorney Neil H. MacBride for the Eastern District of Virginia and John Morton, Assistant Secretary of Homeland Security for U.S. Immigration and Customs Enforcement announced today. The guilty pleas are part of the Department of Justice’s initiative to combat online piracy.

Robert D. Cook, 56, and his son, Todd A. Cook, 23, both of Wichita Falls, Texas, pleaded guilty late yesterday to criminal copyright infringement and conspiracy to commit criminal copyright infringement before U.S. District Court Judge T.S. Ellis III, in Alexandria, Va.
According to court documents, from July 2006 through May 2008, the Cooks operated several Web sites that sold large volumes of counterfeit software with a combined retail value of approximately $1 million.

The defendants admitted that they used these Web sites to sell downloadable counterfeit software without authorization from the copyright owners. The defendants also admitted that they promoted their illicit scheme by purchasing advertising for their Web sites from major Internet search engines.

Both defendants face up to five years in prison, a fine of $250,000 and three years of supervised release. Sentencing has been scheduled for June 18, 2010.

The convictions of Robert and Todd Cook are the latest in an investigation out of Wichita Falls, in which four other men have been convicted for operating Web sites engaged in the sale of pirated software. Thomas C. Rushing III, William Lance Partridge and Brian C. Rue all pleaded guilty to criminal copyright infringement in U.S. District Court in Austin, Texas, on Aug. 22, 2008. Timothy K. Dunaway pleaded guilty to criminal copyright infringement on Oct. 20, 2008, in U.S. District Court in Wichita Falls. Combined, the counterfeit software sold by these individuals had a retail value of more than $10 million.

This case is part of the Department of Justice’s ongoing initiative to combat online auction piracy.

Including the guilty pleas announced today, the Department has obtained 46 convictions involving online auction and commercial distribution of counterfeit software. The Department’s initiative to combat online auction piracy is just one of several steps being undertaken to address the losses caused by intellectual property theft and hold responsible those engaged in criminal copyright infringement.

“The Computer Crime and Intellectual Property Section (CCIPS) is responsible for implementing the Department’s national strategies in combating computer and intellectual property crimes worldwide. The Computer Crime Initiative is a comprehensive program designed to combat electronic penetrations, data thefts, and cyberattacks on critical information systems. CCIPS prevents, investigates, and prosecutes computer crimes by working with other government agencies, the private sector, academic institutions, and foreign counterparts.

Section attorneys work to improve the domestic and international infrastructure-legal, technological, and operational-to pursue network criminals most effectively. The Section’s enforcement responsibilities against intellectual property crimes are similarly multi-faceted. Intellectual Property (IP) has become one of the principal U.S. economic engines, and the nation is a target of choice for thieves of material protected by copyright, trademark, or trade-secret designation.

In pursuing all these goals, CCIPS attorneys regularly run complex investigations, resolve unique legal and investigative issues raised by emerging computer and telecommunications technologies; litigate cases; provide litigation support to other prosecutors; train federal, state, and local law enforcement personnel; comment on and propose legislation; and initiate and participate in international efforts to combat computer and intellectual property crime.”

LOS ANGELES – A Chicago-area man was sentenced this afternoon to 30 months in federal prison for taking nude videos of television personality Erin Andrews and posting the videos on the Internet after being rebuffed when he offered the videos for sale to a celebrity website.
Michael David Barrett, 49, of Westmont, Illinois, was sentenced by United States District Judge Manuel L. Real, who also ordered the defendant to pay $7,366 in restitution to Ms. Andrews.

Andy Soltis reported, “It’s been speculated that the video was taken in Omaha, Neb., last month while Andrews was covering the College World Series. But the local police department and US Attorney’s Office said no reports had been filed with them.

Meanwhile, voyeurs who tried to access the pictures after they were taken down were directed to sites that showed a blurry video of a naked, attractive blonde, touted as Andrews.

And when they clicked on the video, they got a computer virus.

“There are lots more sites out there pretending to host the Erin Andrews peephole but really hosting malicious software,” wrote Graham Cluley, of the anti-virus firm Sophos.”

During the sentencing hearing, Judge Real noted that, as a result of Barrett’s conduct, Ms. Andrews will suffer for the rest of her life.

Barrett pleaded guilty December 15 to a federal charge of interstate stalking with the intent to harass and to cause substantial emotional distress. Barrett admitted that he stalked ESPN reporter Erin Andrews over an 18-month period. Barrett’s conduct included tracking Ms. Andrews to at least three different hotel rooms in three states in 2008. Barrett made the videos after removing the peephole device from the door in one of the hotel rooms and using his mobile phone to capture video of Ms. Andrews while she was naked.

In January 2009, TMZ.com was offered the opportunity to purchase the nude videos via email messages, an offer that the celebrity website immediately declined. Barrett subsequently posted 10 of the videos on the Internet, identifying Ms. Andrews as the victim.

During today’s sentencing hearing, Ms. Andrews told the court of the fear, anxiety and public humiliation that she suffers as a result of having been stalked. “I’m being victimized every day…and I did nothing to deserve it,” Ms. Andrews said, adding the videos will likely always be on the Internet.

In court papers filed in support of their request for a prison sentence in this case, prosecutors told the court that Barrett posted on the Internet another 32 videos that depicted another 16 as-yet-unidentified victims.

The case against Barrett was investigated by the Federal Bureau of Investigation’s Los Angeles Field Office, which received assistance from the FBI’s Chicago Field Office.

Lawrence Superior Court Judge Leila Kern this morning sentenced Kevin Quinn, 44, of Haverhill, to 23 years in state prison for rape of a child with force, and two counts of indecent assault and battery on a child under 14. Quinn had been convicted last week in Lawrence Superior Court following a week-long trial. The jury deliberated for just under 3 hours before returning its verdict.

Essex Assistant District Attorney Karen Hopwood proved that Quinn raped and indecently assaulted a young girl in Lawrence on diverse dates in 1997. The victim, who is now 19 years old, disclosed the sexual abuse in June of 2007.

Upon his release, Quinn will be on probation for five years. Judge Kern ordered him to have no direct or indirect contact with the victim or her family. She also ordered him to have no contact with any children under 16, comply with the requirements of the Sex Offender Registry Board, and participate in a sex offender treatment program.

Quinn was represented by Attorney Lynette Leos from the Committee for Public counsel Services.

Hopwood lauded the work Victim/Witness Advocate Amy Snow, and Lawrence Detective Daniel Fitzpatrick.

Quinn had a prior conviction for aggravated rape in 1986, to which he plead guilty and received a sentence of 10-15 years in state prison. That offense also took place in Lawrence.

“Figures from a 1994 DOJ study on recidivism indicated that compared to non-sex offender felons, a sex offender was 4 times more likely to be rearrested for a sex crime (1.3% of released non-sex offenders were later arrested for a sex crime, while 5.3% of released sex offenders were later arrested for a different sex crime). On the other hand, the same study mentions that 68% of released non-sex offenders were rearrested for any crime (both sex and non-sex offenses), while 43% of the released sex offenders were rearrested for any crime (and 24% reconvicted).

According to the Office of Justice Programs of the United States Department of Justice, in New York State the recidivism rates for sex offenders have been shown to be lower than any other crime except murder. Another report from the OJP that studied recidivism of prisoners released in 1994 in 15 states accounting for two-thirds of all prisoners released in the United States that year, reached the same conclusion.

In 2007, the State Bureau of Investigation in North Carolina made significant changes to its sex offender registration system, including new search criteria that include an “offender status” search, enabling an explicit search for convicted sex offense recidivists in the sex offender database.

Manual searches by county using the new criteria yield some of the lowest recidivist percentages ever disseminated by any law enforcement establishment. In the entire State of North Carolina, there are only 71 recidivists shown on the registry, if incarcerated offenders are included. Per-county results for “Registered” status offenders compared against “Recidivist” status offenders on the North Carolina registry yield actual convicted recidivist percentages ranging from zero to fractions of one percent.”1