DealBook: Beneath the Calm, SAC Works to Contain Fallout From Inquiry

At last month’s Hurricane Sandy benefit concert, Steven A. Cohen sat near the Madison Square Garden stage, grooving to performances by Bon Jovi and Billy Joel.

Last week, he flew a private jet to the World Economic Forum in Davos, Switzerland, rubbing shoulders with world leaders and Fortune 500 chieftains. And on Monday, he will show up at the Breakers Resort in Palm Beach, Fla., for one of the year’s biggest hedge fund conferences and, if he can squeeze it in, a round of golf.

For a man who has emerged as the Justice Department’s great white whale in its insider trading investigation — a Wall Street version of Captain Ahab pursuing Moby-Dick — Mr. Cohen, the billionaire owner of the hedge fund SAC Capital Advisors, does not appear concerned.

But inside the offices of SAC’s Stamford, Conn., headquarters, and at Midtown Manhattan law firms, Mr. Cohen’s employees and lawyers are working hard to contain the fallout from the investigation.

His executives have offered financial incentives to Mr. Cohen’s staff members to stay with SAC. Marketing officers are trying to persuade investors to keep their money at the fund. And defense lawyers are working furiously to persuade federal securities regulators not to file a civil fraud lawsuit against the firm.

“This has always been a stressful place to work,” said an SAC employee who requested anonymity because he was unauthorized to speak publicly about the fund. “Now it’s just more stressful.”

Neither SAC nor Mr. Cohen has been accused of any wrongdoing.

The main question now looming over the firm is whether its clients will stand by the fund, or its legal and regulatory problems will cause investors to head for the exits. Under the firm’s rules, SAC clients have until Feb. 15 to ask for their money back, and then cannot make another so-called redemption request for another three months.

Mr. Cohen’s fund was dealt a blow last week when a Citigroup unit that manages money for wealthy families disclosed that it was withdrawing its $187 million investment. The move by the bank was the most prominent client departure since November, when the multiyear investigation into SAC’s trading practices entered a more serious phase.

Citigroup’s withdrawal represents a tiny percentage of SAC’s $14 billion in assets under management. The fund has said it expects total investor redemptions for the first quarter of up to $1 billion, a number that an SAC spokesman has said will not adversely affect its business.

SAC is largely insulated from the potentially devastating effects that client defections can have on a hedge fund in part because of Mr. Cohen’s extraordinary wealth. Unlike other hedge fund managers who rely almost entirely on outside investors, Mr. Cohen has the comfort of knowing that about $8 billion of SAC’s fund belongs to him and his employees.

Still, the Citigroup decision stung, say people close to SAC’s business, because of the longstanding and lucrative relationship between the bank and the fund. Another concern, said these people, is that the move could influence other large SAC investors currently weighing whether to keep their money at the fund.

For Citigroup, its withdrawal of money from SAC carries substantial business risk. The bank has a vast relationship with SAC, earning revenue by providing the fund with financing and trading services.

SAC could exact retribution on Citigroup by terminating, or at least scaling back, its broader relationship with the bank. An SAC spokesman declined to comment.

Citigroup’s move came two months after federal authorities arrested Mathew Martoma, a former SAC portfolio manager, in what they described as the most lucrative insider trading case ever uncovered. The Martoma indictment represented the first time that the government had brought charges stemming from a trade in which Mr. Cohen had been involved. The Securities and Exchange Commission has warned Mr. Cohen that it might file a civil fraud action against SAC related to the case.

In addition to Mr. Martoma, at least seven former SAC employees have been tied to insider trading while at the fund. Three have pleaded guilty to criminal charges.

Citigroup issued a statement that its decision “should not be construed as a statement on the merits of any outstanding legal proceedings or potential regulatory action.” But the bank specifically cited the Martoma case, explaining that “in the event these legal and regulatory matters are resolved favorably for Mr. Martoma and SAC, Citi Private Bank expects to reconsider admission of SAC’s funds to its hedge fund platform.”

Mr. Martoma has pleaded not guilty and rejected requests by federal agents to cooperate against his former boss. Mr. Cohen has told his employees and clients that he is confident that he has acted appropriately at all times.

Yet the heightened government scrutiny has caused skittishness among SAC’s top ranks, forcing the fund to lavish even richer financial incentives on a group of employees that is already among the most highly compensated in the hedge fund industry.

This month, SAC told its stable of portfolio managers that it would increase year-end bonuses by three percentage points. SAC portfolio managers — the fund’s most senior traders, given the authority to make their own investment decisions and also feed Mr. Cohen their best ideas — are paid, on average, 20 percent of the profits they generate for the fund.

“The program is intended to retain our most valuable resource, our investment professionals,” said Jonathan Gasthalter, the SAC spokesman.

Another valuable resource is SAC’s outside investors, which account for about $6 billion, or 40 percent, of the fund’s assets. That money accounts for hundreds of millions of dollars in fees, which SAC uses to finance one of the world’s largest and most sophisticated hedge fund operations, with more than 1,000 employees and 125 teams of traders and analysts. Its operation is also one of the most successful, posting average annualized returns of about 30 percent since 1992.

Those results have in the past kept SAC’s customers satisfied, but the government scrutiny has made many of them uneasy. The firm’s marketing team has reached out to the fund’s investors to address their concerns and reassure them that the insider trading inquiry will not affect its performance.

Despite those efforts, several investors in addition to Citigroup, including Titan Advisors and a unit of Société Générale, have notified SAC that they are withdrawing money. Other clients, like Chapwood Investments and SkyBridge Capital, have said they will continue to invest with the fund.

SAC executives continued the charm offensive with major clients on Sunday, holding an annual golf outing in Palm Beach on the eve of a hedge fund conference at the Breakers sponsored by Morgan Stanley. The conference — a matchmaking event that connects top managers with the world’s richest investors — is considered an important stop on the hedge fund money-raising circuit.

Since Morgan Stanley does not invite the news media to its conference, there is not expected to be the same paparazzi-like reports on Mr. Cohen that emerged last week from Davos. Bloomberg News filed a dispatch that Mr. Cohen sat in on a panel discussion on data security called “The Digital Infrastructure Context.” And Henry Blodget, the editor of the financial Web site Business Insider, wrote a Twitter post on a sighting of Mr. Cohen.

“Steve Cohen was hanging in Davos lounge yesterday,” he wrote. “Didn’t look worried.”

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California still hasn't bought land for bullet train route

Construction of California's high-speed rail network is supposed to start in just six months, but the state hasn't acquired a single acre along the route and faces what officials are calling a challenging schedule to assemble hundreds of parcels needed in the Central Valley.

The complexity of getting federal, state and local regulatory approvals for the massive $68-billion project has already pushed back the start of construction to July from late last year. Even with that additional time, however, the state is facing a risk of not having the property to start major construction work near Fresno as now planned.

It hopes to begin making purchase offers for land in the next several weeks. But that's only the first step in a convoluted legal process that will give farmers, businesses and homeowners leverage to delay the project by weeks, if not months, and drive up sales prices, legal experts say.

One major stumbling block could be valuing agricultural land in a region where prices have been soaring, raising property owners' expectations far above what the state expects to pay.

"The reality is that they are not going to start in July," said Anthony Leones, a Bay Area attorney who has represented government agencies as well as property owners in eminent domain cases.

State high-speed rail officials say it won't be easy, but they can acquire needed property and begin the project on time.

"It is a challenge," said Jeff Morales, the rail agency's chief executive. "It is not unlike virtually any project. The difference is the scale of it."

Quickly acquiring a new rail corridor is crucial to the project, which Gov. Jerry Brown touted last week as the latest symbol of California's tradition of dreaming big and making major investments in its future.

Delays in starting construction could set in motion a chain reaction of problems that would jeopardize the politically and financially sensitive timetable for building the $6-billion first leg of the system. Under its deal with the Obama administration, which is pushing the project as an integral part of its economic and transportation agenda, the state must complete the first 130 miles of rail in the Central Valley by 2018, an aggressive schedule that would require spending about $3.6 million every day.

California voters in 2008 approved plans for a 220-mph bullet train system that would initially link the Bay Area and Southern California at a cost of $32 billion, less than half the estimated cost of the project.

If the construction schedule slips, costs could grow and leave the state without enough money to complete the entire first segment. Rail agency documents acknowledge initial construction may not get as close to Bakersfield in the southern Central Valley as planned.

In addition to property, the rail authority still needs permits from the Army Corps of Engineers and approval by the San Joaquin Valley Air Pollution Control District, two more potential choke points that Morales says can be navigated.

The land purchases are waiting on the hiring of a team of specialized contractors, but they cannot start their work until the rail agency gets approval from another branch of the state bureaucracy. About 400 parcels are needed for the first construction segment, a 29-mile stretch from Madera to Fresno.

The formal offers will start an eminent domain action, the legal process for seizing land from private owners. The owners have 30 days to consider the offer, and then the state must go through a series of steps that can add 100 more days of appeals and hearings, assuming the state can get on the court calendar, according to Robert Wilkinson, an eminent domain litigator in Fresno. If the state fails to convince a judge that a quick takeover of property is justified, formal trials could stretch on for 18 months, he added.

"I would think a lot of these are going to end up in litigation," he said. "It is a tight schedule, no question about it."

Indeed, the rail authority's formal right-of-way plan indicates it does not expect to acquire the first properties until Sept. 15, despite other documents that indicate construction would start in July. Rail officials said they padded the schedule to avoid claims for additional payments by construction contractors should land not be available by July.

Last month, the federal Government Accountability Office reported that about 100 parcels were at risk of not being available in time for construction.

That assessment was based on information the office collected last August. Susan Fleming, a GAO investigator, testified at a House hearing last month: "Not having the needed right of way could cause delays as well as add to project costs."

Morales said in a recent interview that he would not argue with the warning in the GAO report but still sees nothing that would delay the start of construction. Technically, the rail authority could meet the July target date by beginning demolition or other construction on a single piece of property, he said.

Anja Raudabaugh, executive director of the Madera County Farm Bureau, which is suing to halt the project under the California Environmental Quality Act, said the rail authority will face strong opposition to condemnation proceedings in the Central Valley. The bureau has hired a condemnation expert to help battle the land seizures.

"It is a harried mess," she said.

She noted that agricultural land prices rose rapidly last year across the nation. In the Central Valley, the average price of farmland is $28,000 per acre, while the rail authority's budget anticipates an average price of $8,000 per acre, she said.

Kole Upton, an almond farmer who leads the rail watchdog group Preserve Our Heritage, questioned the rail agency's expertise in conducting complex appraisals of agricultural land that has orchards, irrigation systems and processing facilities.

"I am not sure this thing has been well thought out by people who have a deep understanding of agriculture," Upton said. "I live on my farm, and my son lives on my farm. My dad started it after World War II. This is our heritage and our future."

Morales said he believes the agency's budget for property acquisitions is adequate and he did not want to negotiate prices publicly.

"We don't think we are wildly off," he said.

ralph.vartabedian@latimes.com

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Lace 'Em Up: 4 Running Shoes Reviewed

Hitting the streets to get fit by spring? We review four new specialty sneakers for runners.

Adidas' Adizero Feather 2.0 runners are so light (barely 7 ounces) and so responsive, running in them feels more like bouncing on fluffy clouds than pounding on pavement. OK, I'm exaggerating, but I was really blown away by the light weight when I took them out on long-distance runs. So effective was the feather-weight design on a 5-mile outing, I could actually notice the reduced effort in my legs.

The shoe is topped with a barely-there breathable mesh that runs from the toes all the way back to the heel. Ventilation is therefore excellent, with a constant flow of cool air delivered directly to your piggies. And, unlike most shoes that make use of fancy, lightweight materials, they're actually quite sturdy.

These sneaks are compatible with Adidas' miCoach data reporting system and its companion apps. So if you already have a miCoach Speed_Cell sensor, just lift up the shoe's insert and pop it in (You can also attach the sensor to your laces). The sensor can be synced with your iPhone to track your speed, acceleration, distance, and pace during runs.

The only problem is that the miCoach system needs some work, including the inconsistent syncing and the iPhone app's interface. If you're used to the Nike+ app, you'll be struggling to work your way through using Adidas' lesser creation. That said, it's an add-on to the shoe and not a primary feature, so miCoach's shortcomings don't detract from the sneaker's quality.

WIRED Obscenely light at only 7 ounces. Flexible mesh upper keeps your tootsies cool and dry. Durable, despite the lightweight design. miCoach-compatible for tracking your runs. Great styling. Affordable at $115. Men's and women's versions.

TIRED If you're not into light shoes, these aren't for you. The miCoach system needs a lot of work -- it's adequate, but could be so much better.

Photos by Ariel Zambelich/Wired

Rating: 8 out of 10

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Well: Ask Well: Squats for Aging Knees

You are already doing many things right, in terms of taking care of your aging knees. In particular, it sounds as if you are keeping your weight under control. Carrying extra pounds undoubtedly strains knees and contributes to pain and eventually arthritis.

You mention weight training, too, which is also valuable. Sturdy leg muscles, particularly those at the front and back of the thighs, stabilize the knee, says Joseph Hart, an assistant professor of kinesiology and certified athletic trainer at the University of Virginia, who often works with patients with knee pain.

An easy exercise to target those muscles is the squat. Although many of us have heard that squats harm knees, the exercise is actually “quite good for the knees, if you do the squats correctly,” Dr. Hart says. Simply stand with your legs shoulder-width apart and bend your legs until your thighs are almost, but not completely, parallel to the ground. Keep your upper body straight. Don’t bend forward, he says, since that movement can strain the knees. Try to complete 20 squats, using no weight at first. When that becomes easy, Dr. Hart suggests, hold a barbell with weights attached. Or simply clutch a full milk carton, which is my cheapskate’s squats routine.

Straight leg lifts are also useful for knee health. Sit on the floor with your back straight and one leg extended and the other bent toward your chest. In this position, lift the straight leg slightly off the ground and hold for 10 seconds. Repeat 10 to 20 times and then switch legs.

You can also find other exercises that target the knees in this video, “Increasing Knee Stability.”

Of course, before starting any exercise program, consult a physician, especially, Dr. Hart says, if your knees often ache, feel stiff or emit a strange, clicking noise, which could be symptoms of arthritis.

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J. Richard Hackman, an Expert in Team Dynamics, Dies at 72

J. Richard Hackman, a Harvard psychology professor whose fieldwork sometimes took him to the cockpit of an airliner to observe the crew in a nearly five-decade quest to determine the dynamics of teamwork and effective leadership, died on Jan. 8 in Boston. He was 72.

The cause was lung cancer, his wife, Judith Dozier Hackman, said.

Dr. Hackman, the author or co-author of 10 books on group dynamics, was the Edgar Pierce professor of social and organizational psychology at Harvard.

In one of his best-known books, “Leading Teams: Setting the Stage for Great Performances” (2002), he replaced the popular image of the powerful “I can do it all” team leader with that of someone who, as he wrote, had the subtle skills “to get a team established on a good trajectory, and then to make small adjustments along the way to help members succeed.”

The conditions for a successful team effort — among them “a compelling direction, an enabling team structure, a supportive organizational context and expert team coaching” — “are easy to remember,” Dr. Hackman wrote.

“The challenge,” he continued, “comes in developing an understanding of those conditions that is deep and nuanced enough to be useful in guiding action, and in devising strategies for creating them even in demanding or team-unfriendly organizational circumstances.”

Besides tracking the interplay of pilots, co-pilots and navigators aboard civilian and military planes, Dr. Hackman observed corporate boards, sports teams, orchestra players, telephone-line repair crews, hospital workers and restaurant kitchen staff members.

And in recent years, for his 2011 book, “Collaborative Intelligence,” he was allowed to observe interactions within the American intelligence, defense, law-enforcement and crisis-management communities.

“Although my main aspiration has been to provide guidance that will be useful to team leaders and members,” he wrote, “there are no ‘one-minute’ prescriptions here — creating, leading and serving on teams is not that simple.”

Anita Woolley, a professor of organizational behavior and theory at the Tepper School of Business at Carnegie Mellon University in Pittsburgh, said, “The key thing about Dr. Hackman’s work is that it stands in contrast to some of the more popular models of leadership that focused very much on style or how leaders behave, versus what they do.”

Rather than viewing pay as a prime motivator for good performance, she continued, “he focused on features of people’s jobs that made them more intrinsically satisfied: the freedom to determine how they conduct their work, having a variety of tasks, having knowledge of the ultimate outcomes of their work, knowing how their work affects or is received by other people.”

He also liked to overturn some of the received wisdom about teamwork. In a 2011 article for The Harvard Business Review, Dr. Hackman listed “Six Common Misperceptions About Teamwork.” Among them was this:

“Misperception No. 2: It’s good to mix it up. New members bring energy and fresh ideas to a team. Without them, members risk becoming complacent, inattentive to changes in the environment, and too forgiving of fellow members’ misbehavior.

“Actually: The longer members stay together as an intact group, the better they do. As unreasonable as this may seem, the research evidence is unambiguous. Whether it is a basketball team or a string quartet, teams that stay together longer play together better.”

John Richard Hackman was born in Joliet, Ill., on June 14, 1940, the only child of J. Edward and Helen Hackman. His father was an oil pipeline engineer, his mother a schoolteacher.

Dr. Hackman received a bachelor’s degree in mathematics from MacMurray College in Jacksonville, Ill., in 1962, and a doctorate in psychology from the University of Illinois in 1966. He soon joined the psychology and administrative sciences department faculties at Yale, where he taught until 1986, when he moved to the psychology and business departments at Harvard.

Besides his wife, who is an associate dean at Yale, he is survived by two daughters, Julia Beth Proffitt and Laura Dianne Codeanne, and four grandchildren.

After Dr. Hackman died, The Harvard Crimson wrote that for years he had “devoted countless hours to improving one team in particular — the Harvard women’s basketball squad, for which he volunteered as an honorary coach.”

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Death sentences in soccer riot spark clashes in Egypt

CAIRO—

Deadly clashes erupted in the Egyptian city of Port Said after 21 soccer hooligans were sentenced to death for killing rival fans in a riot last year that became a dangerous subplot to the nation’s wider unrest and political schisms.

Gunshots and teargas volleys rang out between security forces and supporters of the Masry soccer club after the verdicts were read. Relatives of the accused attempted to storm the jail where soccer fans and former police officials charged in the 2012 stadium melee are imprisoned.

Two police officers and five protesters were reported killed Saturday. Mobs ran through the streets chanting, “Oh, you dirty government.” Tensions intensified over fears that angry bands of men would take up guns, which have streamed onto Egypt’s black market from Libya and other countries.

By late morning, the Egyptian army had deployed to Port Said to protect the prison and other government buildings.

The violence, which followed Friday’s deadly protests against the Islamist-led government, revealed how frayed and desperate Egypt has become two years after the toppling of autocrat Hosni Mubarak. The verdict in the soccer riot case was nervously anticipated as another flashpoint for bloodshed.

The accused Masry fans were charged in the deaths of 74 fans from Cairo’s Ahly soccer club during a match in Port Said last February. Hardcore Ahly supporters, known as Ultras, had in recent days threatened to attack police and government institutions across the country if death penalties were not handed down.

Former police officers charged in the case are expected to be sentenced in March. The Ahly Ultras claim security forces orchestrated the stadium attack as retribution for the group’s long resistance to the police state and its role in the uprising that brought down Mubarak. The Ultras said Saturday they would not react until the sentencing of 54 other defendants, including the former officers.

  “We are waiting for the March 9 verdict,” said an Ultra fan who asked not to give his name. “This fight was between us and those responsible from the military, police, and government. We vowed retribution or chaos. We will take our revenge.”

 The father of one of those killed in the stadium riot was happy with Saturday’s sentencing.

“We are satisfied with this verdict and God willing the rest of the defendants will receive the same sentence,” said Bassem El Dessouky. “I thank God first and then the Ultras, they are respectful youth who helped us and stood by us every step of the way."

But across Port Said women wailed and men raced through the streets in rage. Many said that that the verdicts made scapegoats of the fans while postponing the fates of former police and security officers. Masry supporters believe former members of the Mubarak regime instigated the soccer riot to destabilize the country.

"The police are thugs!" families yelled inside the courtroom before the verdict was read. 

jeffrey.fleishman@latimes.com  

 

 

 

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Crazy Alien Weather: Lightning-Filled Rocket Dust Storms of Mars

Scientists have modeled the internal workings of lightning-filled “rocket dust storms” on Mars that rise at speeds 100 times faster than ordinary storms and inject dust high into the Martian atmosphere.

The Red Planet is a very dry and dusty place, with global storms that sometimes obscure the entire surface. Satellites orbiting Mars have seen persistent dust layers reaching very high altitudes, as much as 30 to 50 km above the ground, though scientists are at a loss to explain exactly how the dust got there.

Using a high-resolution model, researchers have shown that a thick blob-like dust pocket inside a storm may become heated by the sun, causing the surrounding atmosphere to warm quickly. Because hot air rises, these areas will shoot skyward super fast, much like a rocket launching into space, hence “rocket dust storms.”

“The vertical transport was so strong we want to come up with a kind of spectacular name, to give an idea of the very powerful rise,” said planetary scientist Aymeric Spiga from the Institut Pierre Simon Laplace in Paris, France, who is lead author on a paper describing the phenomena in the Journal of Geophysical Research: Planets on Jan. 14.

These speedily rising dust blobs can soar from near the surface to 30 or 40 km into the atmosphere in a matter of hours at speeds in excess of 10 meters per second (22 mph). This is far faster than the typical convection speeds in a dust storm of 0.1 meters per second (0.2 mph). Since the dust particles rub up against one another and create friction, the rocket dust storms may become charged with electrostatic forces, which could which could trigger fantastic lightning bolts.

Spiga and his team used detailed models of winds and dust on Mars to determine exactly how these rocket dust storms behave. Most previous models of Mars’ climate simulate large-scale global dust storms with fairly coarse resolution and so have not noticed the rocket storms. The team seeded their model with data from a dust storm observed by the OMEGA instrument aboard ESA’s Mars Express orbiting satellite and watched the rise of rocket storms.

Similar dust storms can’t happen on Earth. This is mainly because Mars’ atmosphere is about 100 times thinner than our own, meaning that it gets quickly and efficiently heated when dust particles absorb sunlight and then emit thermal radiation.

But a comparable phenomenon occurs in grey cumulonimbus thunderstorm clouds on Earth. The large accumulations of water particles in such clouds release latent heat, causing strong vertical motions and an extensive tall structure. Spiga’s team has used this Earthly analogy in the rocket dust storm’s more technical name, conio-cumulonimbus, from the Greek conious, which means dust.

“But I prefer to call them rocket dust storms,” Spiga said. “Then everyone knows what I’m talking about.”

Other researchers are impressed with the physical modeling done in the work. “I was a little surprised that such a small dust disturbance could remain intact over such long distances,” said planetary atmospheres scientist Scot Rafkin from the Southwest Research Institute in Boulder, Colorado. The mechanism could help explain how long-lasting layers of dust climb so high in the Martian atmosphere, he says. 

Because they appear to be relatively rare, it may take a while to track down more rocket dust storms. But Spiga is hopeful they will be found by orbiting satellites, which may even image the lightning flashes inside them.

Video: Spiga, Aymeric, et al. “Rocket dust storms and detached dust layers in the Martian atmosphere,” JGR:Planets, DOI: 10.1002/jgre.20046

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40 Years After Roe v. Wade, Thousands March to Oppose Abortion

Drew Angerer/The New York Times

Pro-life activists made their way down Constitution Avenue toward the Supreme Court during the March for Life in Washington on Friday.

WASHINGTON — Three days after the 40th anniversary of the decision in Roe v. Wade, the landmark Supreme Court case that legalized abortion, tens of thousands of abortion opponents from around the country came to the National Mall on Friday for the annual March for Life rally, which culminated in a demonstration in front of the Supreme Court building.

On a gray morning when the temperature was well below freezing, the crowd pressed in close against the stage to hear more than a dozen speakers, who included Tony Perkins, the president of the Family Research Council; Representative Diane Black, Republican of Tennessee, who recently introduced legislation to withhold financing from Planned Parenthood, and Senator Rand Paul, Republican of Kentucky; Cardinal Seán Patrick O’Malley of Boston; and Rick Santorum, the former senator from Pennsylvania and Republican presidential candidate.

Mr. Santorum spoke of his wife’s decision not to have an abortion after they learned that their child — their daughter Bella, now 4 — had a rare genetic disorder called Trisomy 18.

“We all know that death is never better, never better,” Mr. Santorum said. “Bella is better for us, and we are better because of Bella.”

Jeanne Monahan, the president of the March for Life Education and Defense Fund, said that the march was both somber and hopeful.

“We’ve lost 55 million Americans to abortion,” she said. “At the same time, I think we’re starting to win. We’re winning in the court of public opinion, we’re winning in the states with legislation.”

Though the main event officially started at noon, the day began much earlier for the participants, with groups in matching scarves engaged in excited chatter on the subway and gaggles of schoolchildren wearing name tags around their necks. Arriving on the Mall, attendees were greeted with free signs (“Defund Planned Parenthood” and “Personhood for Everyone”) and a man barking into a megaphone, “Ireland is on the brink of legalizing abortion, which is not good.”

The march came two months after the 2012 campaign season, in which social issues like abortion largely took a back seat to the focus on the economy. But the issue did come up in Congressional races in which Republican candidates made controversial statements about rape or abortion. In Indiana, Richard E. Mourdock, a Republican candidate for the Senate, said in a debate that he believed that pregnancies resulting from rape were something that “God intended,” and in Illinois, Representative Joe Walsh said in a debate that abortion was never necessary to save the life of the mother because of “advances in science and technology.” Both men lost, hurt by a backlash from female voters.

Recent polls show that while a majority of Americans do not want Roe v. Wade to be overturned entirely, many favor some restrictions. In a Gallup poll released this week, 52 percent of those surveyed said that abortions should be legal only under certain circumstances, while 28 percent said they should be legal under all circumstances, and 18 percent said they should be illegal under all circumstances. In a Pew poll this month, 63 percent of respondents said they did not want Roe v. Wade to be overturned completely, and 29 percent said they did — views largely consistent with surveys taken over the past two decades.

“Most Americans want some restrictions on abortion,” Ms. Monahan said. “We see abortion as the human rights abuse of today.”

Speaker John A. Boehner of Ohio, who spoke via a recorded video, called on the protest group, particularly the young people, to make abortion “a relic of the past.”

“Human life is not an economic or political commodity, and no government on earth has the right to treat it that way,” he said.

The crowd was dotted with large banners, many bearing the names of the attendees’ home states and churches and colleges. Gary Storey, 36, stood holding a handmade sign that read “I was adopted. Thanks Mom for my life.” Next to him stood his adoptive mother, Ellen Storey, 66, who held her own handmade sign with a picture of her six children and the words “To the mothers of our four adopted children, ‘Thank You’ for their lives.”

Mr. Storey said he was grateful for the decision by his biological mother to carry through with her pregnancy. “Beats the alternative,” he joked.

Last week, the Planned Parenthood Federation of America started a new Web site, and on Tuesday, its president, Cecile Richards, released a statement supporting abortion rights.

“Planned Parenthood understands that abortion is a deeply personal and often complex decision for a woman to consider, if and when she needs it,” she said. “A woman should have accurate information about all of her options around her pregnancy. To protect her health and the health of her family, a woman must have access to safe, legal abortion without interference from politicians, as protected by the Supreme Court for the last 40 years.”

This article has been revised to reflect the following correction:

Correction: January 25, 2013

A summary that appeared on the home page of NYTimes.com with an earlier version of this article misstated the day of the march. It took place on Friday, not Thursday.

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Labor Relations Board Rulings Could Be Undone

By ruling that Mr. Obama’s three recess appointments last January were illegal, the federal appeals court ruling, if upheld, would leave the board with just one member, short of the quorum needed to issue any rulings. The Obama administration could appeal the court ruling, but no announcement was made on Friday.

If the Supreme Court were to uphold Friday’s ruling, issued by the United States Court of Appeals for the District of Columbia Circuit, it would mean that the labor board did not have a quorum since last January and that all its rulings since then should be nullified.

Many Republicans and business groups applauded Friday’s ruling. They often assert that the appointments Mr. Obama made to the board have transformed it into a tool of organized labor. But many Democrats and labor unions say Mr. Obama’s appointments restored ideological balance to the board after it was tipped in favor of business interests under President George W. Bush

Mark G. Pearce, the board’s chairman, issued a statement saying the board disagreed with the ruling and suggested that other appeals courts hearing cases about the constitutionality of Mr. Obama’s appointments could reach a different conclusion.

“In the meantime, the board has important work to do,” said Mr. Pearce, whose agency oversees enforcement of the laws governing strikes and unionization drives. “We will continue to perform our statutory duties and issue decisions.”

Unless the Senate confirms future nominees to the board — Senate Republicans have blocked several of Mr. Obama’s board nominees — Mr. Pearce will be the only member left if Friday’s ruling is upheld. The board has five seats.

Representative Darrell Issa, a California Republican who is the chairman of the Oversight and Government Reform Committee, issued a statement that urged the recess appointees to “do the right thing and step down.” He added, “To avoid further damage to the economy, the N.L.R.B. must take the responsible course and cease issuing any further opinions until a constitutionally sound quorum can be established.”

The three disputed recess appointees included two Democrats, Sharon Block, deputy labor secretary, and Richard Griffin, general counsel to the operating engineers’ union; and one Republican, Terence Flynn, a counsel to a board member. Mr. Flynn resigned last May after being accused of leaking materials about the group’s deliberations. Another Republican member, Brian Hayes, stepped down when his term expired last month.

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Palmdale woman accused of torturing her children

Neighbors of a Palmdale woman charged with assaulting and torturing two of her children said Thursday that they never even realized she had kids.

The siblings — a boy, 8, and girl, 7 — did not play outside and were rarely seen, said Cynthia Otero, who runs a day care center at a home opposite the house in the 39000 block of Clear View Court where Ingrid Brewer is alleged to have mistreated the youngsters.

Otero said that when she recently spotted the children getting out of a car, she thought Brewer, 50, "might be baby-sitting."

So neighbors in the suburban cul-de-sac were the more shocked when word spread that Brewer was arrested on suspicion of crimes against her children, she said. Brewer is being charged with eight felony counts, including torture, assault with a deadly weapon and cruelty to a child.

According to authorities, Brewer reported the children missing Jan. 15, prompting a search by deputies from the Los Angeles County Sheriff's Palmdale Station. The youngsters were found hours later hiding under a blanket near a parked car on a street close to their home. They were without winter clothes in 20-degree weather, authorities said.

Sgt. Brian Hudson, a spokesman for the sheriff's Special Victims Bureau, said the children told investigators they ran away because Brewer deprived them of food, locked them in separate bedrooms when she went to work each day, bound their hands behind their backs with zip ties and beat them with electrical cords and a hammer. The youngsters also said that when they were locked in the bedrooms and needed to use the bathroom, they instead had to use wastebaskets, Hudson said.

They fled because "they were tired of being tied up and beaten," Hudson said.

Hudson said both children had injuries consistent with the alleged abuse, including marks on their wrists indicating they had been restrained and "numerous bruising and abrasions over their bodies." They told investigators the mistreatment had been happening since Halloween.

Neighbors interviewed by authorities said they had never noticed anything suspicious but "hardly ever saw the two children," Hudson said. Otero and another neighbor said Brewer did not make friends on the block.

Otero said Brewer was "unfriendly" and typically ignored verbal greetings and waves.

According to sheriff's officials, Brewer, a certified nursing assistant who works in Los Angeles and has adult children, adopted the young siblings about a year ago from foster care. They were home schooled.

Neil Zanville, a spokesman for the county Department of Children and Family Services, said his agency was legally prohibited from disclosing any case-specific information about past or present clients. But in a written statement, the agency's director, Philip Browning, called the report disturbing.

"While we cannot confirm or deny whether this family is under our supervision, I am personally looking into this situation to determine what role, if any, our department had in these children's lives," Browning said.

Sheriff's officials said Thursday that the children were "doing great" despite their injuries.

Otero lamented that they had been made to suffer.

"It's just so sad," said the neighbor, who has a 5-year-old daughter and 8-year-old twins. "I wish they would have knocked on my door. I would have helped them."

Brewer is in the custody of the Sheriff's Department, with bail set at $2 million. She is scheduled to appear in court Thursday, Hudson said.

ann.simmons@latimes.com

Times staff writer Kate Mather contributed to this report.

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