Snow, sleet beginning to hit









A winter weather advisory has been issued for today as the Chicago area is getting hit with sleet, freezing rain and snow from a storm that churned the southern Plains a day earlier.


The heaviest snow is expected to fall between 3 p.m.  and 7 p.m., though the National Weather Service cautioned that a lot will depend on the temperatures.


North of I-80, snow accumulation could reach 3 to 6 inches by Wednesday morning. Some area could get 7 inches if the switch from rain to snow occurs sooner than expected, or if there is lake-enhanced snow.





South of I-80, including much of northwest Indiana, accumulation of less than 3 inches is possible because of an extended period of rain or a rain mixed with snow and sleet.


The storm bore down on the southern Plains on Monday, dumping more than a foot of snow and creating blizzard conditions in Oklahoma, Texas and parts of Kansas still digging out from a winter storm last week.


Highways in the Texas and Oklahoma panhandles and parts of Kansas were closed by the heavy and drifting snow that cut visibility and forced flight cancellations at airports across the region.


A man was killed Monday when his car slid off Interstate 70 in Sherman County, Kansas, near the western border, Governor Sam Brownback said. And in northern Oklahoma, one person died when the roof of a home partially collapsed in the city of Woodward, said Matt Lehenbauer, the city's emergency management director.


"We have roofs collapsing all over town," said Woodward Mayor Roscoe Hill Jr. "We really have a mess on our hands."


The storm was slowly moving out of Texas on Monday, while residents of Kansas City in turn were preparing for a foot or more of snow into Tuesday.


Tornado watches were in place Monday evening in parts of Mississippi and heavy rain was expected through the night in parts of Alabama and Georgia, according to the National Weather Service. The weather service Monday also issued flood watches for parts of the Carolinas and an ice storm warning for portions of West Virginia.


Some 17 inches of snow fell near Amarillo, Texas, according to the National Weather Service. Other areas in the Texas Panhandle reported more than a foot of snow and Texas Governor Rick Perry activated Texas military forces to be ready to respond to calls for assistance.


Amarillo could break the all-time record for the amount of snow in one day of just over 18 inches set in 1934, said Kristin Scotten of the National Weather Service.


Airports in Amarillo and in Lubbock, Texas, were closed and Interstate 27 between the cities was shut because of blowing snow, state officials said. Wind gusts of 75 miles per hour (121 km per hour) were clocked at the Amarillo airport.


Visibility was near zero on some roads around Amarillo, said Paul Braun, a Texas Department of Transportation spokesman.


"I am hearing that we have a lot of vehicles that are stalled in the main lanes of our roadways and they can't be seen because of the blowing snow," Braun said.


Texas State Trooper Gabriel Medrano said the snow was too deep to measure in Lubbock.


"We are having a lot of problems getting our troopers to these crash scenes," Medrano said. "Our troopers are getting stuck out there."


In Oklahoma, a state of emergency was declared for 56 of 77 counties, with northwest Oklahoma hit hardest in the storm. All highways in the Oklahoma panhandle were closed because of blizzard conditions.


Parts of northwestern Oklahoma could get 16 inches to 24 inches of snow, with high winds creating drifts up to 6 feet high, the National Weather Service said.


"It's the biggest in the last several years, really," said James Hand, emergency management director in the small town of Mooreland. "Last year, we didn't have anything to shovel."





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Cellar victim Kampusch raped, starved in film of ordeal






VIENNA (Reuters) – A new film based on the story of Austrian kidnap victim Natascha Kampusch shows her being repeatedly raped by the captor who beat and starved her during the eight-and-a-half years that he kept her in a cellar beneath his house.


Kampusch was snatched on her way to school at the age of 10 by Wolfgang Priklopil and held in a windowless cell under his garage near Vienna until she escaped in 2006, causing a sensation in Austria and abroad. Priklopil committed suicide.






Kampusch had always refused to respond to claims that she had had sex with Priklopil, but in a German television interview on her 25th birthday last week said she had decided to reveal the truth because it had leaked out from police files.


The film, “3,096 Days” – based on Kampusch’s autobiography of the same name – soberly portrays her captivity in a windowless cellar less than 6 square metres (65 square feet) in area, often deprived of food for days at a time.


The emaciated Kampusch – who weighed just 38 kg (84 pounds) at one point in 2004 – keeps a diary written on toilet paper concealed in a box.


One entry reads: “At least 60 blows in the face. Ten to 15 nausea-inducing fist blows to the head. One strike with the fist with full weight to my right ear.”


The movie shows occasional moments that approach tenderness, such as when Priklopil presents her with a cake for her 18th birthday or buys her a dress as a gift – but then immediately goes on to chide her for not knowing how to waltz with him.


GREY AREAS


Antonia Campbell-Hughes, who plays the teenaged Kampusch, said she had tried to portray “the strength of someone’s soul, the ability of people to survive… but also the grey areas within a relationship that people don’t necessarily understand.”


The British actress said she had not met Kampusch during the making of the film or since. “It was a very isolated time, it was a bubble of time, and I wanted to keep that very focused,” she told journalists as she arrived for the Vienna premiere.


Kampusch herself attended the premiere, looking composed as she posed for pictures but declining to give interviews.


In an interview with Germany’s Bild Zeitung last week, she said: “Yes, I did recognize myself, although the reality was even worse. But one can’t really show that in the cinema, since it wasn’t supposed to be a horror film.”


The movie, made at the Constantin Film studios in Bavaria, Germany, also stars Amy Pidgeon as the 10-year-old Kampusch and Danish actor Thure Lindhardt as Priklopil.


“I focused mainly on playing the human being because… we have to remember it was a human being. Monsters do not exist, they’re only in cartoons,” Lindhart said.


“It became clear to me that it’s a story about survival, and it’s a story about surviving eight years of hell. If that story can be told then I can also play the bad guy.”


The director was German-American Sherry Hormann, who made her English-language debut with the 2009 move “Desert Flower”, an adaptation of the autobiography of Somali-born model and anti-female circumcision activist Waris Dirie.


“I’m a mother and I wonder at the strength of this child, and it was important for me to tell this story from a different perspective, to tell how this child using her own strength could survive this atrocious martyrdom,” Hormann said.


The Kampusch case was followed two years later by that of Josef Fritzl, an Austrian who held his daughter captive in a cellar for 24 years and fathered seven children with her.


The crimes prompted soul-searching about the Austrian psyche, and questions as to how the authorities and neighbors could have let such crimes go undetected for so long.


The film goes on general release on Thursday.


(Reporting by Georgina Prodhan, Editing by Paul Casciato)


Movies News Headlines – Yahoo! News





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Recipes for Health: Roasted Carrots and Scallions — Recipes for Health


Andrew Scrivani for The New York Times







I bought incredibly sweet, thick red scallions and multicolored bunches of carrots from a farmer at my market and roasted them with fresh thyme. Then I sprinkled on some crushed toasted hazelnuts, which contributed a nice crunchy texture and nutty finish to the dish. If you have a bottle of hazelnut oil or walnut oil on hand, a small drizzle just before serving is a welcome touch.




1 ounce hazelnuts (about 1/4 cup)


1 pound carrots, preferably young small carrots, any color (but a mix is nice)


1 bunch white or purple spring onions or scallions


Salt and freshly ground pepper


2 teaspoons fresh thyme leaves


2 tablespoons extra virgin olive oil


Optional: a drizzle of hazelnut oil or walnut oil for serving


1. Preheat the oven to 325 degrees. Place the hazelnuts on a baking sheet and roast for 8 to 10 minutes, until they smell toasty and they are golden all the way through (cut one in half to check). Remove from the oven and turn up the heat to 425 degrees.


2. Immediately wrap the hazelnuts in a clean, dry dish towel. Rub them in the towel to remove the skins. Then place the skinned hazelnuts in a plastic bag or, if you have one, a disposable pastry bag and set on your work table in one layer. Use a rolling pin to crush the nuts by rolling over them with the pin. Set aside.


3. Line a sheet pan with parchment or oil a baking dish large enough to fit all of the vegetables in a single layer. If the carrots are small, just peel and trim the tops and bottoms. If they are medium-sized, peel, cut in half and cut into 4-inch lengths. Quarter large carrots and cut into 4-inch lengths. Trim the root ends and greens from the spring onions or scallions. If they are bulbous, cut them in half. Season with salt and pepper, add the thyme and olive oil and toss well, either directly on the pan or in the dish or in a bowl. Spread in an even layer in the baking dish or on the baking sheet.


4. Roast in the oven for 20 to 30 minutes, stirring every 10 minutes. The onions may be done after 10 minutes – they should be soft and lightly browned. Remove them from the pan if they are and hold on a plate. When the carrots and onions are tender and browned in places, remove from the oven. Add the onions back into the mix if you removed them and toss together. Sprinkle on the toasted ground hazelnuts, drizzle on the optional nut oil, and serve.


Yield: Serves 4


Advance preparation: The vegetables can hold for a few hours once roasted; cover and reheat in a medium oven.


Nutritional information per serving: 171 calories; 11 grams fat; 1 gram saturated fat; 1 gram polyunsaturated fat; 8 grams monounsaturated fat; 0 milligrams cholesterol; 16 grams carbohydrates; 6 grams dietary fiber; 89 milligrams sodium (does not include salt to taste); 2 grams protein


Martha Rose Shulman is the author of “The Very Best of Recipes for Health.”


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JPMorgan to eliminate 4,000 jobs in 2013









JPMorgan Chase & Co. plans to cut 3,000 to 4,000 jobs in its consumer bank in 2013, representing about 1.5 percent of the company's overall workforce, it said in a presentation to investors on Tuesday.

The cuts will come mainly through attrition, spokeswoman Kristin Lemkau said.

Additionally, Forbes reports that job cuts in its mortgage and community banking units could total 19,000.

JPMorgan Chase had 258,965 employees globally at the end of 2012. Its headcount rose following the financial crisis, to 262,882 in the second quarter of 2012 from 219,569 in the first quarter of 2009. Since last year's second quarter, staffing levels have drifted lower.

The bank has been building more branches even as competitors such as Bank of America Corp have scaled back. But its consumer bank business is also looking to reduce costs in its branches by staffing them more efficiently, JPMorgan Chase said in the presentation.

JPMorgan Chase had 5,614 branches at the end of 2012, making its network the second-biggest in the United States behind Wells Fargo & Co. JPMorgan is No. 3 in deposits, behind Bank of America and Wells Fargo.

The bank hopes to sell more services, such as wealth management, at its branches, and allow its automated teller machines to handle more routine transactions such as check deposits.

JPMorgan Chase said in its presentation that it is aiming to cut overall expenses by $1 billion in 2013.
 

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New storm to hit Chicago area on Tuesday: forecasts









For the second time in less than a week, the Chicago area is in line for a snowstorm that promises a mixture of freezing rain, sleet and snow with enough accumulation to bring out the snow shovels.


Early predictions from the National Weather Service pegged the potential snowfall at about 3-6 inches, about what the storm left the end of last week. But the weather service says it's still unclear which areas will be hit with what: If the temperature is above freezing, there will be less snow, and if it's below, there will be more.


The weather service has issued a winter storm watch from Tuesday morning through the evening.








The weather service said the snow will start sometime after midnight Tuesday morning, with freezing rain turning to sleet to wet snow by early afternoon. With winds gusting about 35 mph, some of that snow will drift and made Tuesday a bad day on the roads.


The track of the storm is over the Texas panhandle northeast and through Missouri and southern Illinois and central Indiana, the Lake Erie area early Wednesday. North of the low pressure path, winter storm watches are in effect from late Monday through Tuesday from Missouri through northern Illinois, the southeastern corner of Wisconsin, extreme northern Indiana and much of Lower Michigan.

In the Chicago area, there could be heavy snow of 6 inches or more Tuesday generally north of Interstate 80, with northeast winds at 25 to 35 mph whipping and blowing the snow, according to the Chicago Weather Center.


Rain, a period of freezing rain and sleet will spread north out of central Illinois early Tuesday, changing over to a heavy wet snow in the Chicago metro area and across the far west through north suburbs into southern Wisconsin.

A combination of freezing rain, sleet and snow will cause hazardous driving across northern Indiana Tuesday. The precipitation will be all snow across Illinois later Tuesday.


According to the Chicago Weather Center, February has been an unusually snowy month during a winter that has been unusually snowless. Through Saturday, there has been 10.1 inches of snow, about 136 percent of normal, while the winter's total has been 13.6 inches, way below normal.


Plains states hit again


A storm struck parts of the southern Plains today, creating blizzard conditions in Oklahoma and Texas and warnings in Kansas and Missouri that caught the brunt of a winter storm last week.

Snow fell at the rate of up to 2 inches per hour in the Amarillo, Texas, area, and the National Weather Service warned against travel, saying "most roads are impassable."

Airports in Amarillo and 120 miles to the south in Lubbock, Texas, were closed while Interstate 27 between the cities was shut down because of the blowing snow, state officials said.

Amarillo and parts north of Amarillo in the panhandle reported a foot of snow or more on Monday morning.

Parts of northwestern Oklahoma could get 16 inches to 24 inches of snow, with high winds that could create drifts up to 6 feet high, according to the National Weather Service in Norman, Oklahoma.

The Oklahoma Highway Patrol said it closed all highways in the Oklahoma panhandle because of blizzard conditions. Interstate 40 in the Texas panhandle was also closed, according to National Weather Service in Amarillo.

In Oklahoma City, some afternoon flights from Will Rogers World Airport were canceled in anticipation of the storm.

Kansas, hit by a foot or more of snow in spots last week, braced for possible worsening conditions on Monday and Tuesday.

Reuters contributed


chicagobreaking@tribune.com


Twitter: @ChicagoBreaking





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Well: Ask Well: The Nutrients in Fruits and Veggies

The colorful skin of an apple, grape or tomato is certainly chockfull of nutrients. But by no means are the outer layers of most fruits and vegetables the prime source of their nutrition.

Part of what makes some fruits and vegetables so rich with color – wax and pesticides notwithstanding – are pigments in the skin that have healthful antioxidant properties. Resveratrol, for example, is found in the skin of red grapes and other fruits. But lycopene, one of the pigments that gives tomatoes and bell peppers their deep red color, is distributed throughout.

Indeed, many vitamins and nutrients are found in the skin as well as the flesh. Take apples. According to the United States Department of Agriculture, a large red apple with its skin intact contains about 5 grams of fiber, 13 milligrams of calcium, 239 milligrams of potassium, and 10 milligrams of vitamin C. But remove the skin, and it still contains about 3 grams of fiber, 11 milligrams of calcium, 194 milligrams of potassium, and plenty of its vitamin C and other nutrients.

Another example is the sweet potato. The U.S.D.A. says that a 100-gram serving of sweet potato cooked with its skin contains 2 grams of protein, 3 grams of fiber, and 20 milligrams of vitamin C. But the same sized serving of sweet potato without skin that has been boiled — a process that further leaches away some of its nutrients — still boasts 1.4 grams of protein, 2.5 grams of fiber, and 13 milligrams of vitamin C.

You can lose the skin, in other words, without losing all the benefits.

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Horsemeat found in IKEA meatballs









Sweden's IKEA halted sales of its trademark Swedish meatballs in 13 European countries after tests in the Czech Republic on Monday showed the product contained horsemeat.

IKEA, the world's No. 1 furniture retailer and known also for its signature cafeterias in its huge out-of-town stores, said it had stopped sales of all meatballs from a batch implicated in the Czech tests.

The checks were carried out in response to a Europe-wide scandal that erupted last month when tests carried out in Ireland revealed some beef products contained horsemeat. This has triggered recalls of ready-made meals and damaged confidence in Europe's vast and complex food industry.

"We take this very seriously," said IKEA spokeswoman Ylva Magnusson at the company's headquarters in Helsingborg, southern Sweden. "We have stopped selling that specific batch of meatballs in all markets where they may have been sold."

The meatballs, pulled from shelves at IKEA's stores after Czech inspectors discovered they contained horsemeat, had been available in stores in several European countries, the company's Czech spokesman said on Monday.

Besides the Czech Republic, they had also been on sale in Britain, Portugal, Netherlands, Belgium, Slovakia, Hungary, France, Italy, Spain, Greece, Cyprus and Ireland, Magnusson said.

All IKEA's meatballs are produced in Sweden by supplier Familjen Dafgard, which said on its website it was investigating the situation and would receive further test results in the coming days.

IKEA's Magnusson said hopes were that test results would determine the percentage of horsemeat in the meatballs, and that there was is no indication any other batch had been affected.

In Italy, one of the countries where meatballs from the batch were withdrawn from sale, consumer rights group Codacons called for checks on all meat products sold by IKEA in Italy.

"We are ready to launch legal action and seek compensation not only against the companies who are responsible but also those whose duty it was to protect citizens," Codacons President Carlo Rienzi said in a statement.

The Czech State Veterinary Administration reported its findings to the EU's Rapid Alert System for Food and Feed, it said in a statement.

The inspectors took samples for DNA tests in IKEA's unit in the city of Brno from a product labelled as "beef and pork meatballs", the statement said.

Meatballs, a famous Swedish dish, have become a trademark for IKEA across its markets.

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Daytona 500 still a go despite accident that injured fans









DAYTONA BEACH, Fla. —





The Daytona 500 NASCAR race will go ahead on Sunday despite a crash on Saturday that injured more than 20 fans, questions over the safety of the famous speedway and the possibility of lawsuits.

Officials said they had repaired the fencing that was damaged after the pile-up which sent debris flying into the crowd and injuring fans on the final lap of Saturday's second-tier Nationwide race.






Halifax Health spokesman Byron Cogdell said that seven people were treated for injuries at their facility but two who had initially been listed as critical were now in a stable condition.

Another injured spectator was being treated at Florida Hospital Memorial Medical Center in Daytona Beach, but their condition was not available.

Fourteen other fans had been treated on site at the track before being released, said Daytona International Speedway president Joei Chitwood.

Chitwood said any fans in the affected area who were concerned about the safety of their seat position would be relocated.

"If fans are unhappy with...their seating location or if they have any incidents, we would relocate them. We will treat that area like we do every other of the grandstand.

"If a fan is not comfortable where they are sitting, we make every accommodation we can," he said.

NASCAR and the speedway could face millions of dollars' worth of claims from the injured, litigation that would likely center on the sturdiness of the safety fence that was supposed to keep fans from danger, according to several plaintiffs' lawyers.

"Maybe the fence should have been higher; maybe there should have been more spacing between the track and spectators," said Adam Levitt, a lawyer with Grant & Eisenhofer.

However, lawyers also said the auto-racing business would likely point to the disclaimers that it typically displays on tickets, which are designed to exempt NASCAR from any potential injury liability. They expected NASCAR would argue that fans knew what they were getting into when signing up for the race.

NEW FENCING

Both the speedway and NASCAR have said they will closely review the incident in search of any ways they could improve safety.

Chitwood said new, 22-feet-high fencing had been put in place three years ago following a review of a crash involving Colin Edwards at Talladega in 2009.

"If you look at our 55 years in the business, we have a pretty good safety track record. I think we are prepared today," said Chitwood.

However, three-times Indianapolis 500 winner Johnny Rutherford said a change might be needed.

"Maybe a double fence, one behind the other with some space in between to stop something like this," he told reporters.

"But there are a lot of things and NASCAR and Indy Car racing are looking at everything they can to make it safer.

"What happened yesterday was a terrible thing because we expect (danger) that is part of it, we have to roll the dice and move on but you don't want to involve the fans," he said.

NASCAR's senior vice-president of racing operations Steve O'Donnell said he would tell any nervous fans that organisers were confident of their safety.

"I would tell them that the fans are our first priority. Obviously we want everyone to be safe at an event," he told reporters.

"We've talked to the speedway. We are confident in what's in place at today's event. Certainly still thinking about those affected but we are confident to move forward for this race," he added.

Fans streamed into the 167,000-capacity venue on Sunday and there was little indication of concern over safety.

"I feel safe. I think anywhere you go you run the risk of being injured but NASCAR does everything they can to protect the fans. They treat the fans like royalty here, it is amazing," said Vinny Nigro of New York City.

Another fan, Brad Stefka from Springfield, Missouri, said that while not particularly worried he would avoid the seating closest to the track.

"I just won't get down low. I would imagine that everyone who comes knows there is some element of danger if the cars are going that fast, if there is going to be a serious impact," he said.



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The Texas Tribune: Advocates Seek Mental Health Changes, Including Power to Detain


Matt Rainwaters for Texas Monthly


The Sherman grave of Andre Thomas’s victims.







SHERMAN — A worried call from his daughter’s boyfriend sent Paul Boren rushing to her apartment on the morning of March 27, 2004. He drove the eight blocks to her apartment, peering into his neighbors’ yards, searching for Andre Thomas, Laura Boren’s estranged husband.






The Texas Tribune

Expanded coverage of Texas is produced by The Texas Tribune, a nonprofit news organization. To join the conversation about this article, go to texastribune.org.




For more articles on mental health and criminal justice in Texas, as well as a timeline of the Andre Thomas case: texastribune.org






Matt Rainwaters for Texas Monthly

Laura Boren






He drove past the brightly colored slides, swings and bouncy plastic animals in Fairview Park across the street from the apartment where Ms. Boren, 20, and her two children lived. He pulled into a parking spot below and immediately saw that her door was broken. As his heart raced, Mr. Boren, a white-haired giant of a man, bounded up the stairwell, calling out for his daughter.


He found her on the white carpet, smeared with blood, a gaping hole in her chest. Beside her left leg, a one-dollar bill was folded lengthwise, the radiating eye of the pyramid facing up. Mr. Boren knew she was gone.


In a panic, he rushed past the stuffed animals, dolls and plastic toys strewn along the hallway to the bedroom shared by his two grandchildren. The body of 13-month-old Leyha Hughes lay on the floor next to a blood-spattered doll nearly as big as she was.


Andre Boren, 4, lay on his back in his white children’s bed just above Leyha. He looked as if he could have been sleeping — a moment away from revealing the toothy grin that typically spread from one of his round cheeks to the other — except for the massive chest wound that matched the ones his father, Andre Thomas (the boy was also known as Andre Jr.), had inflicted on his mother and his half-sister as he tried to remove their hearts.


“You just can’t believe that it’s real,” said Sherry Boren, Laura Boren’s mother. “You’re hoping that it’s not, that it’s a dream or something, that you’re going to wake up at any minute.”


Mr. Thomas, who confessed to the murders of his wife, their son and her daughter by another man, was convicted in 2005 and sentenced to death at age 21. While awaiting trial in 2004, he gouged out one of his eyes, and in 2008 on death row, he removed the other and ate it.


At least twice in the three weeks before the crime, Mr. Thomas had sought mental health treatment, babbling illogically and threatening to commit suicide. On two occasions, staff members at the medical facilities were so worried that his psychosis made him a threat to himself or others that they sought emergency detention warrants for him.


Despite talk of suicide and bizarre biblical delusions, he was not detained for treatment. Mr. Thomas later told the police that he was convinced that Ms. Boren was the wicked Jezebel from the Bible, that his own son was the Antichrist and that Leyha was involved in an evil conspiracy with them.


He was on a mission from God, he said, to free their hearts of demons.


Hospitals do not have legal authority to detain people who voluntarily enter their facilities in search of mental health care but then decide to leave. It is one of many holes in the state’s nearly 30-year-old mental health code that advocates, police officers and judges say lawmakers need to fix. In a report last year, Texas Appleseed, a nonprofit advocacy organization, called on lawmakers to replace the existing code with one that reflects contemporary mental health needs.


“It was last fully revised in 1985, and clearly the mental health system has changed drastically since then,” said Susan Stone, a lawyer and psychiatrist who led the two-year Texas Appleseed project to study and recommend reforms to the code. Lawmakers have said that although the code may need to be revamped, it will not happen in this year’s legislative session. Such an undertaking requires legislative studies that have not been conducted. But advocates are urging legislators to make a few critical changes that they say could prevent tragedies, including giving hospitals the right to detain someone who is having a mental health crisis.


From the time Mr. Thomas was 10, he had told friends he heard demons in his head instructing him to do bad things. The cacophony drove him to attempt suicide repeatedly as an adolescent, according to court records. He drank and abused drugs to try to quiet the noise.


bgrissom@texastribune.org



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Promise, peril seen for crowd-funding investors









Crowd funding is widely seen as a revolutionary idea.


A 2012 federal law known as the JOBS Act opens the door to allowing small, privately owned businesses to market ownership stakes in their ventures to people over the Internet.


Companies will be able to sell up to $1 million in equity a year to ordinary investors without having to register the offering with the Securities and Exchange Commission or state regulators.





Before the average person can use crowd funding to stake a claim in a startup, the SEC still must draft rules that the Obama administration hopes will result in U.S. businesses growing and adding jobs. At the same time, the securities cop needs to include safeguards that protect less sophisticated individual investors drawn to inherently risky startups.


That's why equity crowd funding under JOBS, or Jumpstart our Business Startups, has some longtime regulators and securities lawyers squirming.


"It can be an invitation for fraudsters to steal money," Matthew Brown, a Katten Muchin Rosenman lawyer, said last month at a CFA Society of Chicago event at 1871, a center for digital startups in Chicago.


But Brown also noted that equity crowd funding also democratizes small-business financing, a process that historically has given access mostly to wealthier — or, as they're known in high-finance circles, "accredited" — investors.


"The world has changed dramatically, and who's to say who is smarter than anyone else?" Brown added.


Many existing crowd-funding platforms such as Kickstarter don't sell equity stakes in businesses to average investors. Rather, they give consumers the chance to donate money to an enterprise or to get an early or discounted crack at a new product. Since Kickstarter's launch in April 2009, more than $450 million has been pledged by more than 3 million people funding more than 35,000 projects, the New York-based company's website says.


Their acceptance suggests that consumers are willing to engage with companies on a deeper level. As such, enabling unaccredited consumers to invest in companies in small increments online has promise and could become part of the fundraising "ecosystem," says one Chicago entrepreneur.


Abe's Market, a Chicago-based e-commerce site selling natural and organic products from more than 1,000 suppliers, said it would consider crowd funding under the JOBS Act, saying it and its vendors have "die-hard fans" and "a core group of customers" who might like to invest in their vision.


Last month, Abe's raised $5 million from Carmel Ventures, Index Ventures, Beringea and Accel Partners, a Groupon backer. New backers include OurCrowd, a crowd-funding site for accredited investors.


"If you can get passionate people to invest in your business, you're not just gaining investors, you're gaining evangelists," Abe's Chief Executive Richard Demb said. "The challenge for any consumer brand is: How do you find not just customers, but the right customers who are going to tell their friends?"


But there would also be potential headaches for companies raising equity financing through crowd funding, he said.


"You have to make sure that expectations would be set fairly, that no one is putting their life savings into the investment, and that they don't also come back and become a challenge to manage as the business grows," Demb said. "You don't want someone who invested $250 to come back and say, 'I don't think we should expand to the West Coast.'"


Safeguards for average investors exist in the JOBS Act. They include capping nonaccredited individuals' crowd-funding investments at $2,000, or 5 percent of annual income or net worth of less than $100,000, whichever is greater.


Snapclass, launched a few weeks ago at 1871, provides software enabling businesses to provide training online. Co-founder Scott Mandel, who has financed the company himself, doesn't expect to take advantage of equity crowd funding in the future and instead would seek, say, venture capital funding.


"Not all checks are the same," said Mandel, previously a trader and professional poker player. "I'd want someone who could add more than just the cash, such as connections and experience and help with things that I'm not an expert in."


One of 1871's fastest-growing startups is MarkITx. It recently raised $1.2 million from wealthy individuals in its first fundraising round, has seven employees and is looking to add sales jobs. It's an online exchange for businesses wanting to buy and sell used information technology equipment, from iPads to Oracle servers.


"For us, it wouldn't be the sole way to raise money, but it definitely is a viable vehicle to look at raising money," MarkITx partner Marc Brooks said of equity crowd funding under the JOBS Act.





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