Italy's Berlusconi sentenced to jail for tax fraud

MILAN (Reuters) - Former Italian Prime Minister Silvio Berlusconi was sentenced to four years in jail on Friday for tax fraud in connection with the purchase of broadcasting rights by his Mediaset television company.

The 76-year-old billionaire, who was convicted three times during the 1990s in the first degree before being cleared by higher courts, has the right to appeal the ruling two more times before the sentence becomes definitive. He will not be jailed unless he loses the final appeal.

The ruling comes two days after Berlusconi confirmed he would not run in next year's elections as the leader of his People of Freedom (PDL) party, ending almost 19 years as the dominant politician of the center-right.

Milan judge Edoardo d'Avossa told a packed court that between 2000 and 2003, there had been "a very significant amount of tax evasion" and "an incredible mechanism of fraud" in place around the buying and selling of broadcast rights.

The court's written ruling said Berlusconi showed a "natural capacity for crime".

Berlusconi lawyers Piero Longo and Niccolo Ghedini said the ruling was "totally divorced from all judicial logic", adding that they hoped the "atmosphere" at the appeals courts would be different.

Berlusconi, one of Italy's richest men, became prime minister for a second time in 2001 after winning a landslide election victory. Even while he was prime minister, he remained in effective charge of Mediaset even though he had handed over control of day-to-day operations, the court said.

The four-time prime minister and other Mediaset executives stood accused of inflating the price paid for TV rights via offshore companies controlled by Berlusconi and skimming off part of the money to create illegal slush funds.

The investigation focused on television and cinema rights that Berlusconi's holding company Fininvest bought via offshore companies from Hollywood studios.

The court also ordered damages provisionally set at 10 million euros ($13 million) to be paid by Berlusconi and his co-defendants to tax authorities.

"POLITICAL HOMICIDE"

The flamboyant Berlusconi, who is still on trial in a separate prostitution case, resigned as prime minister a year ago as Italy faced a Greek-style debt crisis, handing the reins of government to economics professor Mario Monti.

Angelino Alfano, secretary of the PDL, said the ruling proved once again "judicial persecution" of the media magnate, while political rival Antonio Di Pietro, a former magistrate, hailed the decision, saying "the truth has been exposed".

Should the ruling be confirmed on appeal, Berlusconi would also be forbidden from holding public office for five years, and from being a company executive for three years.

"This is not a sentence, but an attempt at political homicide," Fabrizio Chicchito, the PDL's chief whip in the Chamber of Deputies, said referring to the ban from holding office.

Now that Berlusconi has said he will pull out of politics, he may be focusing more on his business empire, which includes Mediaset, AC Milan soccer club, and Internet bank Mediolanum.

Shares in Mediaset, Italy's biggest private broadcaster, fell as much as 3 percent after the ruling, and are down about 50 percent in the last year.

The broadcaster has been struggling against rivals like News Corp's broadcaster Sky Italia and a host of online media, while its core advertising revenues are feeling the pinch of the recession.

The court acquitted Mediaset chairman and long-term Berlusconi friend Fedele Confalonieri, for whom prosecutors had sought a sentence of three years and four months.

Berlusconi has owned AC Milan since 1986 and they have been European champions five times under his leadership. But the club's fortunes have dipped in the past couple of seasons amid cost cutting, prompting repeated rumors of its possible sale.

He also is still on trial in the separate "Rubygate" case in which he is accused of paying for sex with a teenaged nightclub dancer when she was under 18 and thus too young to be paid legally as a prostitute. He denies the charges.

(Additional reporting by Danilo Masoni. Writing by Lisa Jucca and Steve Scherer; Editing by James Mackenzie and Michael Roddy)

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Shot Pakistani girl "will rise again": father

BIRMINGHAM, England (Reuters) - The father of a Pakistani girl who was shot in the head by the Taliban for advocating girls' education said on Friday his daughter was strong and would "rise again" to pursue her dreams after receiving treatment in a British hospital.

Malala Yousufzai, 15, was flown from Pakistan to the British city of Birmingham to receive specialist treatment after the October 9 attack which drew widespread international condemnation.

She has become a powerful symbol of resistance to the radical Islamist group's effort to deny women an education.

Her father, Ziauddin Yousufzai, and other family members flew to Britain on Thursday to help their daughter's recovery.

"They wanted to kill her. But she fell temporarily. She will rise again. She will stand again," he said, his voice wavering and breaking with emotion as he spoke.

"It's a miracle for us ... She was in a very bad condition," he told reporters, sitting alongside his son.

"She is improving with encouraging speed."

Yousufzai began standing up to the Pakistani Taliban when she was 11, when the Islamabad government had effectively ceded control of the Swat Valley where she lives to the militants.

She has been in critical condition since gunmen shot her in the head and neck as she left school in Swat, northwest of Islamabad.

British doctors say she has every chance of making a good recovery at the special hospital unit, expert in dealing with complex trauma cases. It has treated hundreds of soldiers wounded in Afghanistan.

Her father said he and his family cried when they were finally reunited with Malala on Thursday. "We are very happy," he said. "I pray for her."

(Reporting by Stephen Eisenhammer, Writing by Maria Golovnina; editing by Steve Addison)

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With rival jailed, Ukraine president seems set for election victory

KIEV (Reuters) - Ukraine geared up on Friday for an election which many commentators expect to cement President Viktor Yanukovich's rule, despite his jailed rival Yulia Tymoshenko calling on voters to stop an imminent "dictatorship".

Yanukovich's Party of the Regions and a union of opposition forces backing Tymoshenko were scheduled to stage their final public rallies later on Friday in the capital Kiev ahead of Sunday's poll for a new parliament.

The election takes place with the government unpopular because of tax and pensions policies and failure to stamp out corruption, and the former Soviet republic looking isolated after rows with the United States and the European Union over Tymoshenko, and with Russia over gas.

The export-oriented economy is vulnerable to external shocks such as falling demand for steel. The International Monetary Fund, whose loans could provide a financial cushion, froze lending in 2011 when Kiev balked at painful reform.

There is also the question of what judgment international observers will hand down after monitoring the election.

No opinion polls have been published since October 18, in line with an official information blackout.

But ratings before then showed the Regions with a firm lead over the joint opposition, which includes Tymoshenko's Batkivshchyna (Fatherland) party, and a new liberal party headed by world heavyweight boxing champion Vitaly Klitschko.

Commentators expect Yanukovich's pro-business Regions, which is bankrolled by wealthy industrialists and can draw on state and regional facilities and resources, to hold on to a majority in the 450-seat assembly.

In campaigning, the Regions have promised to make Russian an official state language alongside Ukrainian - a move aimed at winning back disenchanted supporters in Russian-speaking areas of the east and south.

OPPOSITION WARNING

The opposition warns that a Regions victory will usher in authoritarian rule and policies tailored to further enrich business "oligarchs" and Yanukovich's trusted inner circle of associates and relatives.

Tymoshenko, 51, a political firebrand in her heyday, on Thursday called on voters to throw out the Regions, warning Yanukovich could "establish a dictatorship and will never again give up power by peaceful means".

Much interest lies in whether the opposition, weakened by Tymoshenko's jailing, will be re-energized after the election.

Two-meter-tall Klitschko has pledged to work to stamp out endemic corruption in the country of 46 million. He and his UDAR (Punch) party, which has surged in ratings, represent a wild card in the poll.

He has turned his back on any alliance with the Regions and says he will side with the united opposition led by Arseny Yatsenyuk, a bespectacled, 38-year-old former economy minister.

But the fact Klitschko declined to sign a pre-election coalition agreement with Yatsenyuk-led forces has bred suspicion among the opposition.

Of the 450 seats in the single-chamber parliament, 225 will be filled through voting by party lists - where the voter casts a ballot for a party which presents a list of candidates.

The other half will be decided by voting for individual candidates on a first-past-the-post basis - a feature re-introduced by the Regions which is assumed to favor the party.

SOCCER HERO

Other parties which have a chance of crossing the 5 per cent barrier to secure seats in parliament include Svoboda (Freedom), a nationalist party headed by Oleh Tyahnybok.

The Ukraine-Forward! party of Natalia Korolevska, formerly a Tymoshenko loyalist, describes itself as an opposition party. Korolevska has enlisted to her ticket soccer hero Andriy Shevchenko - the feet of Ukrainian sport to Klitschko's fists.

But the main opposition leaders says she is funded by industrialists who also back the Regions. They regard Ukraine-Forward! as a phantom party aimed at taking votes from them.

International monitors of the poll include a 700-member team from the Organization for Security and Co-operation in Europe (OSCE). The OSCE will deliver its verdict on Monday and Yanukovich will be eager to hear a positive assessment to improve his international image, if only because Ukraine takes over the chair of the human rights and security body in January.

Prime Minister Mykola Azarov, No. 1 candidate on the Regions ticket, said his government had worked hard to ensure that the election followed international standards in protecting the integrity of the vote and preventing systemic abuses.

But some Western voices have expressed reservations.

U.S. Secretary of State Hillary Clinton and EU foreign policy chief Catherine Ashton said this week the West was concerned at Tymoshenko's continued imprisonment, and at reports state resources were being used to promote Regions candidates.

(Writing By Richard Balmforth; Editing by Pravin Char)

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Belarussian opposition leader granted UK asylum: wife

MINSK (Reuters) - Belarussian opposition leader Andrei Sannikov, released from prison this year and warned by authoritarian President Alexander Lukashenko not to "blabber" if he wants to remain free, has been granted asylum in Great Britain, his wife said on Friday.

Sannikov, 58, ran against Lukashenko in the 2010 presidential poll which Western observers said was fraudulent. The vote handed Lukashenko, a former Soviet collective farm manager, a fourth term in office.

Sannikov was sentenced to five years in prison last year for taking part in a protest against Lukashenko's re-election.

He told Reuters in an interview after his release that the authorities had tried to push him to commit suicide while he was in jail.

Lukashenko said soon after the release of Sannikov and one of his allies from jail in April: "If they blabber, they will go back there."

But Sannikov's wife, Irina Khalip, said her husband had been granted political asylum in Britain.

Khalip, a journalist who has herself been given a suspended sentence over the protests and is barred from leaving Belarus, declined to provide any other details.

Sannikov, when contacted by Reuters, said he had been in Britain since August but declined to provide any details.

British authorities made no immediate comment on the case.

Lukashenko has run Belarus since 1994, tolerating little dissent and maintaining a welfare state thanks largely to Russian economic support.

His crackdown on opposition after the 2010 election prompted the European Union to impose travel bans and asset freezes on Lukashenko himself and a number of other Belarussian officials and businessmen.

(Reporting by Andrei Makhovsky; Writing by Olzhas Auyezov; Editing by Jon Hemming)

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Damascus car bomb shatters Syria truce

BEIRUT (Reuters) - A powerful car bomb exploded in Damascus on Friday, inflicting many casualties and buffeting a shaky temporary truce in the Syrian conflict on the occasion of a Muslim religious holiday.

State television said the "terrorist car bomb" had killed five people and wounded 32, according to "preliminary figures".

Opposition activists said the bomb had gone off near a makeshift children's playground built for the Eid al-Adha holiday in the southern Daf al-Shok district of the capital.

Fighting erupted around Syria earlier as both sides violated the Eid al-Adha ceasefire arranged by international peace envoy Lakhdar Brahimi, but violence was far less intense than usual.

The Syrian military said it had responded to attacks by insurgents on army positions, in line with its announcement on Thursday that would cease military activity during the four-day holiday, but reserved the right to react to rebel actions.

Brahimi's ceasefire appeal had won widespread international support, including from Russia, China and Iran, President Bashar al-Assad's main foreign allies.

The U.N.-Arab League envoy had hoped to build on the truce to calm a 19-month-old conflict that has killed an estimated 32,000 people and worsened instability in the Middle East.

Violence appeared to wane in some areas, but truce breaches by both sides swiftly marred Syrians' hopes of celebrating Eid al-Adha, the climax of the Haj pilgrimage to Mecca, in peace.

"We are not celebrating Eid here," said a woman in a besieged Syrian town near the Turkish border, speaking above the noise of incessant gunfire and shelling. "No one is in the mood to celebrate. Everyone is just glad they are alive."

Her husband, a portly, bearded man in his 50s, said they and their five children had just returned to the town after nine days camped out on a farm with other families to escape clashes.

"We have no gifts for our children. We can't even make phone calls to our families," he said, a young daughter on his lap.

The imam of Mecca's Grand Mosque called on Arabs and Muslims to take "practical and urgent" steps to stop bloodshed in Syria.

"PAINFUL DISASTER"

The Syrian conflict has aggravated divisions in the Islamic world, with Shi'ite Iran supporting Assad and U.S.-allied Sunni nations such as Saudi Arabia, Turkey and Qatar backing his foes.

"The world should bear responsibility for this prolonged and painful disaster (in Syria) and the responsibility is greater for the Arabs and Muslims who should call on each other to support the oppressed against the oppressor," Sheikh Saleh Mohammed al-Taleb told worshippers during Eid prayers.

For some in Syria, there was no respite from war, but by dusk the death toll was still significantly lower than in recent days, when often between 150 to 200 people have been killed.

The heaviest fighting took place around the army base at Wadi al-Daif, near the Damascus-Aleppo highway, which rebels have been trying to seize from the army for two weeks.

The Syrian Observatory for Human Rights said nine soldiers were killed by rebel bombardment of the base, which completely destroyed one building, and four rebel fighters were killed in clashes around Wadi al-Daif.

Four people were killed by tank fire and snipers in Harasta, a town near Damascus, activists said. Gunfire and explosions echoed over Douma, just east of the capital. Rockets killed one person in the besieged Khalidiya district of Homs.

Clashes erupted at a checkpoint near the Mahlab army barracks in Aleppo. There was shooting at checkpoints near Tel Kelakh, on the Lebanese border, and clashes in the town itself.

Heavy machinegun fire and mortar explosions were audible along the Turkey-Syrian border near the Syrian town of Haram, a Reuters witness in the Turkish border village of Besaslan said.

Rebels in the northern town near the Turkish border said a sniper had killed one of their fighters early on Friday.

"We don't believe the ceasefire will work," rebel commander Basel Eissa told Reuters. "There's no Eid for us rebels on the front line. The only Eid we can celebrate will be liberation."

Assad himself, who has vowed to defeat what he says are Islamist fighters backed by Syria's enemies abroad, was shown on state television attending Eid prayers at a Damascus mosque.

The prime minister, information minister and foreign minister, as well as the mufti, Syria's top Muslim official, were filmed praying alongside the 47-year-old president.

Assad, smiling and apparently relaxed, shook hands and exchanging Eid greetings with other worshippers afterwards.

MILITARY STALEMATE

Protests against him burst out in March last year, inspired by Arab uprisings elsewhere, but repression by security forces led to an armed insurgency, plunging Syria into a civil war which neither side has proved able to win or willing to end.

A commander from the rebel Free Syrian Army had said his fighters would honor the ceasefire but demanded Assad meet opposition demands for the release of thousands of detainees.

Some Islamist militants, including the Nusra Front, rejected the truce. Many groups were skeptical that it would hold.

"We do not care about this truce. We are cautious. If the tanks are still there and the checkpoints are still there then what is the truce?" asked Abu Moaz, spokesman for Ansar al-Islam, a group whose units fight in and around Damascus.

The war in Syria pits mainly Sunni Muslim rebels against Assad, from the minority Alawite sect which is distantly related to Shi'ite Islam. Brahimi has warned that the conflict could suck in Sunni and Shi'ite powers across the Middle East.

Brahimi's predecessor, former U.N. chief Kofi Annan, declared a ceasefire in Syria on April 12, but it soon became a dead letter, along with the rest of his six-point peace plan.

(Additional reporting by Khaled Yacoub Oweis in Amman and Erika Solomon in northern Syria; Writing by Alistair Lyon; Editing by Myra MacDonald)

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China warns of strong steps in Japan island spat

BEIJING (Reuters) - China reserves the right to take strong countermeasures if Japan "creates incidents" in the waters around a group of disputed uninhabited islands in the East China Sea, a Chinese vice foreign minister said on Friday.

"We are watching very closely what action Japan might take regarding the Diaoyu islands and their adjacent waters," Zhang Zhijun said at an unusual late night news briefing. "The action that Japan might take will shape China's countermeasures."

Sino-Japanese relations took a dive after the Japanese government bought the islands, called Senkaku in Japan and Diaoyu in China, from a private Japanese owner in September, triggering violent protests and calls for boycotts of Japanese products across China.

"If Japan continues down its current wrong path and takes more erroneous actions and creates incidents regarding the Diaoyu Islands and challenges China, China will definitely take strong measures to respond to that," Zhang said.

"There is no lack of countermeasures China might take in response," he added.

"We have the confidence and the ability to uphold the country's sovereignty and territorial integrity. No amount of foreign threats or pressure will shake the resolve of the Chinese government and people."

Following Japan's purchase of the islands, China sent fishery patrol and marine surveillance vessels to waters near the islets, raising concern that confrontation with Japanese patrol ships could escalate into a broader conflict.

Senior Japanese and Chinese diplomats have met to discuss a dispute over East China Sea islets that both countries claim, the Japanese government said on Wednesday, underscoring willingness to talk despite a sharp deterioration in ties.

Chief Cabinet Secretary Osamu Fujimura confirmed talks between Tokyo and Beijing after domestic media reported that Japanese Vice Foreign Minister Chikao Kawai secretly met senior Chinese officials, including his counterpart, Zhang Zhijun, in Shanghai last week to discuss the dispute.

Zhang did not indicate that those talks had made any progress.

"In all levels of contact with the Japanese side, the Chinese side presented China's stern position and steely resolve to uphold China's sovereignty. We urge the Japanese side to give up its illusions and correct its mistakes," he said.

"Only this way can we return to normal relations."

China says the islands have been part of the country since ancient times. Taiwan also claims them.

The row with China, the world's second-largest economy and Japan's largest trading partner, has prompted the Bank of Japan to cut its outlook for economies in the region.

(Reporting by Terril Yue Jones; Writing by Ben Blanchard; Editing by Michael Roddy)

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Britain says opposed to strike on Iran "at this moment"

LONDON (Reuters) - Britain said on Friday it was opposed to a military strike on Iran "at this moment" over its disputed nuclear program, arguing sanctions were having an effect and diplomacy should be given time.

The comments followed a report by Britain's Guardian newspaper which said Britain had rebuffed U.S. plans to use its bases to support the build-up of troops in the Gulf, due to legal advice warning that a pre-emptive strike would be illegal.

The legal advice says Iran currently does not represent a "clear and present threat", according to the Guardian, which cited unnamed sources.

"The government does not believe military action against Iran is the right course of action at this moment, though no option is off the table," Prime Minister David Cameron's spokeswoman told reporters, declining to comment on the legal advice.

"We want to see the sanctions, which are starting to have some impact, working, and also engaging with Iran," she said.

The Guardian said Britain had not received a formal U.S. request to use its bases for a military build-up.

Cameron and Western diplomats believe harsh sanctions imposed on Iran by the West are beginning to weaken Tehran's resolve and to stoke public discontent, and that military action would reverse the trend and rally Iranians to the government.

Israel and the West believe Iran is trying to achieve nuclear weapons capability. Tehran says its program is for purely civilian, energy purposes.

Years of diplomacy and sanctions have failed to resolve the dispute, raising fears of Israeli military action against its arch foe and of a new Middle East war.

Talks between the West and Iran could take place after the November 6 United States presidential election, following three inconclusive rounds this year.

The appetite for conflict is low in cash-strapped Britain, as well as in the United States, after recent costly wars in Iraq and Afghanistan.

In Israel, support for unilateral military action soon against Iran is by no means universal, and several prominent public figures have spoken out against such a move.

(Reporting by Mohammed Abbas; Editing by Pravin Char)

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Myanmar revises down death toll in sectarian violence

SITTWE, Myanmar (Reuters) - Authorities on Friday revised down to 64 the number of people killed in six days of unrest in western Myanmar, after security forces opened fire to break up violence between Buddhists and Muslims.

A spokesman for Rakhine State, where the fighting has taken place, had earlier put the death toll at 112, but later scaled that back, blaming "clerical errors".

Still, the United Nations warned that Myanmar's fledgling democracy could be "irreparably damaged" by the clashes, which come just five months after communal unrest killed more than 80 people and displaced at least 75,000 in the same region.

Buddhist ethnic Rakhines told Reuters they were shot by security forces struggling to impose order on Rakhine State, where violence with Rohingya Muslims has engulfed several districts, including Kyaukpyu where a multibillion-dollar China-Myanmar pipeline starts.

The violence is testing the reformist government's ability to contain ethnic and religious tensions suppressed during nearly a half century of military rule that ended last year.

"The fabric of social order could be irreparably damaged and the reform and opening-up process being currently pursued by the government is likely to be jeopardized," a spokesman for U.N. Secretary-General Ban Ki-moon said.

"The widening mistrust between the communities is being exploited by militant and criminal elements to cause large-scale loss of human lives."

At least 2,000 houses and eight religious buildings had been destroyed, according to state media. Nearly 100 people have been wounded, it said.

A Reuters journalist spoke to Rakhine people treated for bullet wounds and other injuries at a tiny, ill-equipped hospital in Kyauktaw, a town north of the state capital, Sittwe. One man died soon after arriving.

The military opened fire to prevent Rakhine villagers on two boats from storming a Rohingya Muslim community, said Aung Kyaw Min, a 28-year-old Rakhine from Taung Bwe with a bullet in his leg. "I don't know why the military shot at us," he said. Two people died and 10 were wounded, said the villagers.

In a separate incident on Thursday, security forces shot at a crowd of Rakhine protesters on Kyauktaw's outskirts, killing two and wounding four, said Hla Hla Myint, 17, whose forehead was grazed by a bullet.

The shooting is a sign that the military, which has been accused in the past of siding with Buddhists, is getting tougher following international criticism that Myanmar's new government was doing too little to protect Muslim Rohingyas.

CHINESE INVESTMENT

There were widespread unconfirmed reports of razed and burning homes, gunfights and Rohingya fleeing by boat, but access to Rakhine State was restricted and information hard to verify.

The United States, which has been lifting sanctions on Myanmar as relations improve with its quasi-civilian government, said it was deeply concerned over the violence and urged all parties to show restraint and halt attacks.

In Yathedaung, a town northwest of Sittwe, security forces opened fire in a Rohingya district and about 10 houses were burned, residents told Tun Min Thein of the Wan Lark foundation, which helps ethnic Rakhine Buddhists.

Earlier in the week, about 800 houses were burned down around Kyaukpyu, 120 km (75 miles) south of Sittwe.

The area is crucial to China's most strategic investment in Myanmar: twin pipelines that will take oil and gas from Kyaukpyu on the Bay of Bengal to China's energy-hungry western provinces.

"China and Myanmar are friendly neighbors," said Chinese Foreign ministry spokesman Hong Lei when asked on Friday about possible threats to the pipeline projects. "We hope that Myanmar can remain stable."

Rohingyas are officially stateless. Buddhist-majority Myanmar's government regards the estimated 800,000 Rohingyas in the country as illegal immigrants from Bangladesh and denies them citizenship. Bangladesh has refused to grant Rohingyas refugee status since 1992.

It was unclear what set off the latest arson and killing that started on Sunday. In June, tension flared after the rape and murder of a Buddhist woman that was blamed on Muslims, but there was no obvious spark this time.

Rights groups such as Amnesty International have called on Myanmar to amend or repeal a 1982 citizenship law to end the Rohingyas' stateless condition.

In Washington, the State Department has urged Myanmar to grant full humanitarian access to the affected areas, launch a dialogue aimed at reconciliation, and open investigations into the violence.

(Reporting by Reuters staff reporters; Writing by Andrew R.C. Marshall; Editing by Jason Szep and Andrew Roche)

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China starts formal criminal probe into politician Bo Xilai

BEIJING (Reuters) - China moved quickly on Friday to announce it had formally begun a criminal probe into disgraced former senior politician Bo Xilai, hours after expelling him from the largely rubber stamp parliament and so removing his immunity from prosecution.

The announcements pave the way for Bo, once a contender for top leadership in the world's second largest economy, to face trial and likely a long jail sentence on accusations of corruption and abuse of power.

A brief report by the state-run Xinhua news agency said state prosecutors had "decided to put Bo Xilai under investigation for alleged criminal offences".

It added that they had "imposed coercive measures on him in accordance with the law", likely a reference that he was now officially in detention.

Bo's wife, Gu Kailai, and his former police chief, Wang Lijun, have both been jailed over a scandal that stems from the murder of British businessman Neil Heywood while Bo was Communist Party chief of the southwestern city of Chongqing.

The government last month accused Bo of corruption and of bending the law to hush up the murder.

The latest move comes a fortnight before the Communist Party holds a congress, which opens on November 8, that will unveil the country's new central leadership.

Bo, 63, was widely seen as pursuing a powerful spot in the new leadership before his career unraveled after Wang fled to a U.S. consulate for more than 24 hours in February and alleged that Bo's wife had poisoned Heywood.

Bo, a former commerce minister, used his post in Chongqing since 2007 to cast the sprawling, haze-covered municipality into a showcase for his mix of populist policies and bold spending plans that won support from leftists yearning for a charismatic leader.

Xinhua provided no other details, such as what charges Bo may face, saying only that the investigation was under way.

Earlier in the day, Xinhua said the Standing Committee of the National People's Congress, China's parliament, "announced the termination of Bo Xilai's post" as the deputy to the parliament.

As a member of that body he had enjoyed immunity from prosecution.

Before Bo is charged and tried, investigators must first complete an inquiry and indict him, but China's prosecutors and courts come under party control and are unlikely to challenge the accusations.

"THEATRE"

A lawyer for Bo, who has been employed by the family to represent him, said on Thursday he was unable to say whether the government would allow him to represent Bo when the case comes to trial.

"It's theatre," said Nicholas Bequelin, a researcher at Human Rights Watch, a New York-based advocacy group, who spoke before Bo's expulsion and criminal probe were announced.

"The judiciary grinds into action only when the outcome has been determined. There is no indication we will see a genuine trial because Bo knows too much."

An official account of Wang's trial in September said Wang fled to the U.S. consulate in Chengdu, southwest China, after Bo beat him and stripped him of his police job following Wang's decision to confront Bo with the murder allegations against Gu.

Wang had spearheaded Bo's controversial campaign against organized crime, a prominent plank in Bo's barely concealed campaign to join the topmost ranks of the Communist Party.

Bo was dismissed from his Chongqing post in March, and suspended from the party's top ranks in April, when his wife was named as an official suspect in the murder in November of Heywood, a long-time friend of the couple who also helped their son Bo Guagua settle into study in Britain.

Bo has disappeared from public view since he was dismissed and has not had a chance to respond publicly to the accusations against him.

The removal of Bo has disrupted the Communist Party's usually secretive and carefully choreographed process of settling on a new central leadership.

Sharply dressed and courting publicity, Bo stood out in a party of stolid conformists, and he promoted Chongqing as a bold egalitarian alternative to China's current pattern of growth.

But Bo's promotion of "red" culture inspired by Mao Zedong's era and his campaign-style crackdown on crime prompted fears that he was rekindling some of the arbitrary lawlessness of the Cultural Revolution in the 1960s - a criticism that Premier Wen Jiabao spelled out before the public in mid-March.

(Additional reporting by Michael Martina; Editing by Alison Williams)

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Ex-Soviet summit postponed amid worries over Putin's health

MOSCOW/MINSK (Reuters) - A summit of leaders of ex-Soviet states scheduled for the start of November has been postponed, an official said on Friday, amid talk that Russian President Vladimir Putin is suffering from back trouble.

The Executive Committee of the Commonwealth of Independent States (CIS), a loose group created as the Soviet Union broke apart in 1991, said earlier this month the summit was due to take place in Turkmenistan on November 2.

"The (new) dates are being confirmed. They are being agreed with all the presidents," said CIS spokeswoman Vera Yakubovskaya. She declined to give any reason for the postponement.

The Kremlin dismissed talk that Putin had been sidelined from foreign trips after government sources told Reuters he was suffering from back trouble that could require surgery.

The sources said the Russian leader's schedule was being cleared for early November, including the postponement until late December of a trip to India that had been expected soon.

Putin, a judo black belt who is known for stunts that show off his physical prowess throughout his almost 13 years in power, was first seen limping in September when he hosted an Asia-Pacific summit in Russia's Far East.

Putin's spokesman said at the time his boss had pulled a leg muscle.

A recent documentary showed him swimming long distances, working out in a gym and eating raw quail eggs and cream cheese for breakfast.

The former KGB officer could rule Russia until May 2024, according to the constitution.

"LIFE BRINGS CHANGES"

Speculation increased when Putin failed to travel to Pakistan for a four-nation summit on Afghanistan this month or to make an expected trip to Turkey. None of these trips had been officially announced by the Kremlin.

"Many dates which the media reported as fixed were in fact not fixed. Life brings changes and it concerns plans for visits. A lot of information has been misinterpreted by the media," Foreign Ministry spokesman Alexander Lukashevich told reporters.

On Friday Putin sent a video message to participants of a Congress of Compatriots in St. Petersburg, attended by Russians who live abroad.

Putin, who turned 60 this month, made ties with neighboring ex-Soviet states his priority when he returned to the Kremlin in May for a third presidential term.

A decree issued hours after his swearing-in called for closer integration of the ex-Soviet space a "key foreign policy direction" and reiterated plans for a Eurasian Economic Union, based on a Customs Union with Kazakhstan and Belarus.

Putin hosted CIS leaders in the Kremlin a week after his inauguration, making it the first major international event of his new term in office. He traveled to ex-Soviet Belarus before going to Europe.

(Reporting by Gleb Bryanski; editing by Andrew Roche)

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State health department won't enforce all oil and gas well clean-air rules

Colorado health authorities will not fully enforce new EPA rules designed to protect people from air pollution at oil and gas facilities.

The state's Air Quality Control Commission voted instead for a partial adoption of the federal clean-air rules. They plan to hold public meetings next year to consider full implementation.

Colorado Department of Public Health and Environment officials on Thursday issued a statement saying residents already are protected under "state rules that cover many aspects of EPA's rules." The statement said the commission worried that adopting the new standards "could potentially trigger unduly burdensome permitting requirements" for companies.

State officials said they would make no further comment on the issue and did not respond to questions Thursday.

The EPA rules are designed to reduce emissions of methane, volatile organic compounds and other hazardous gases. Many took effect Oct. 15. Others become effective next year and in 2015. Under an agreement with the EPA, Colorado's health department handles enforcement of federal rules in the state.

Oil and gas drilling activity has expanded around Colorado. More than 48,000 wells have been drilled and remain active. This has raised concerns about harm to the environment — water, soil, air — and people.

The CDPHE air division has limited resources — only about eight inspectors to monitor those wells, who would have to take on additional duties to enforce the new federal rules such as monitoring air around gas wells.

EPA inspectors could try to enforce their own rules in the region.

Environment advocates submitted testimony to state commissioners, urging swift adoption of EPA rules.

State air rules "are not nearly as protective" of public health as the federal rules, said Dan Grossman, regional director for the Environmental Defense Fund.

"This means we've lost an opportunity. The biggest issue now — which is not going to be addressed — is these new fracked wells," which emit methane and other pollutants, Grossman said.

"That is what the state officials have kicked down the road," he said. "The governor has been very active promoting the oil and gas industry. But it is important that he prioritize public health when it comes to the development of this resource."

A separate agency, the Colorado Oil and Gas Conservation Commission, has been charged with promoting and simultaneously regulating oil and gas companies. A COGCC "green completion" program requires oil and gas companies to capture methane emissions when wells are drilled. Companies are said to be complying. They are not required to manage air emissions if they determine it is not technically or economically feasible.

Bruce Finley: 303-954-1700, twitter.com/finleybruce or bfinley@denverpost.com

Copyright 2012 The Denver Post. All rights reserved.

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Nuggets center JaVale McGee trying to return to dominant ways

Seventeen minutes. Minus-17.

That was JaVale McGee's plus-minus number in the Nuggets' loss at Portland on Wednesday night. The center signed the big contract this summer, but has not been statistically dominant thus far in the preseason, though one should point out that he averages around just 18 minutes per game.

In the four preseason games, he has notched averages of 7.2 points and 3.5 rebounds. And he has only two total blocks. Low-post counterpart Kenneth Faried is averaging 10.8 points and 6.3 boards in 23.5 minutes.

Both players, the team said, had great summer workouts, including a stint with Hall of Famer Hakeem Olajuwon, who now mentors young big men.

"I don't think there's any question that JaVale and

Kenneth are on top of the list for summer improvement," coach George Karl said recently. "That camp was positive for them. My philosophy with big men is to run the court, rebound the ball. Then finish around the basket and get easy shots around the basket. Have the footwork. The last thing on the list is post moves. I think you're going to see us throw the ball into the post more this year. But it's not our top priority. That's to play as fast as we can and in the open court, where the numbers and matchups are on our side."

McGee is battling Kosta Koufos and Timofey Mozgov for playing time at the center position. Faried will start at power forward for Denver.

Guess who's back? After a long summer of rehab following hip surgery, Wilson Chandler finally made his preseason debut at Portland. That's the good news. The bad news is he didn't have his best offensive game, missing all four shot attempts, including two 3-pointers, in the loss. The small forward did grab four rebounds in his 12 minutes of play, making one steal, too.

Family reunion. Before the Portland game, Karl didn't think his son, Coby, would play for Portland — the Trail Blazers guard had only logged nine minutes in preseason. But coach Karl got a treat — he was able to coach against his son for 21 minutes. Coby Karl finished the night with 11 points and five assists, while leading his team with a plus-16 in his dad's favorite stat category.

Copyright 2012 The Denver Post. All rights reserved.

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Broncos' gamble on four free-agent keepers provides big payoffs

Sure, the names sounded great when they passed through the NFL transaction wire this year — Brandon Stokley, Keith Brooking, Jim Leonhard and Dan Koppen, all veterans who had played in conference championship games or Super Bowls, looking for another shot with a new team.

But each came with significant questions such as age (Brooking, Stokley) or injury (Leonhard, Koppen), and Broncos coach John Fox understood that the additions may have looked like crazy gambles to the rest of the league.

Now, with the Broncos in control of the AFC West at their bye week, those moves are starting to look crazy brilliant.

Brooking, at middle linebacker, and Koppen, at center, have become starters at crucial positions. Stokley,

in his second stint as Denver's slot receiver, is tied for the team lead with three touchdown catches. And Leonhard, while having lost his job as punt returner, is seeing increased playing time at safety, and made an interception Monday in San Diego.

"We've played a lot of games, and played in some big games, and that's never bad for a football team, when you have guys that have that experience, especially in your backups," Leonhard said. "Usually your backups are young, and having veteran backups, you can bounce ideas off the starters, off the coaches, you really get kind of an extra set of eyes on that film."

Leonhard, who will turn 30 before the Broncos play their next game, had played for three teams and was coming off back-to-back, season-ending injuries as he became a free agent this year. He was confident he would recover from the torn patellar tendon he suffered late last year, but understood that other teams might not feel the same way.

That's why, when the Broncos flew him to Denver for a workout in the first week of August, when his knee wasn't fully healed, he said he "jumped at the chance" to sign.

"They were willing to give me time, which not everyone was," Leonhard said.

Leonhard was cleared to start practice late in the preseason and has been playing in specialty defensive packages through the first six games.

Monday night in San Diego, Leonhard replaced starting strong safety Mike Adams for part of the second and third quarters. It was during that time Leonhard, all 5-foot-8 of him, wrestled a deep pass away from 6-4 tight end Antonio Gates.

"I was frustrated because up to that point I didn't really feel I had made an impact. Being a competitive guy, that's all you're looking for," Leonhard said. "It was great to get that interception, and be around a couple more plays throughout the night."

For Brooking, who like Peyton Manning was a first-round draft pick in 1998, the Broncos offered a chance to play earlier than he was realistically expecting as a nearly-38-year-old free agent. Brooking arrived in Denver in August expecting to push Wesley Woodyard for playing time at weakside linebacker and play special teams.

He wound up splitting time with Woodyard, and ultimately replacing Joe Mays at middle linebacker. Brooking started there against the Oakland Raiders when Mays was suspended, and was promoted to starter last week after Mays struggled in his return against the New England Patriots. Brooking graded well against the Chargers (with five total tackles) and likely will remain the starter after the bye week.

"What I've missed, or the half of step I've lost — I won't give you a full step — you gain it in experience and knowledge and things you've seen in this league," Brooking said. "I really felt like my résumé is on tape, and even here recently my role has changed, significantly, over the last two years, but when I've had opportunities, I've been productive. If you look at the film, I can still produce in this league and help a team."

Stokley was basically retired when he answered Manning's call to come work out in North Carolina in February. His close ties with Manning, and to the Broncos, whom he played for from 2007-09, made it an easy decision for the Broncos to offer Stokley a contract in April.

After dealing with injuries over the past two seasons, Stokley, with 19 catches for 216 yards in six games, is healthy and is on pace for his best season since his career prime with Manning in Indianapolis.

"I don't want to say a surprise — but a pleasant surprise as far as his movement, his quickness, even his speed I think has been very good," Fox said.

Koppen, who spent 2011 on injured reserve with a broken leg, replaced injured starting center J.D. Walton midway through the Broncos' win over Oakland on Sept. 30, and the offense has shown no ill effects from the switch so far. Koppen's familiarity with a fast-paced, no-huddle offense from his years in New England has helped the Broncos in crucial situations, like when he managed to get protections changed, push Manning back into shotgun and deliver the snap with less than a second remaining on the go-ahead touchdown pass Monday in San Diego.

"Guys that have been there, done that, been on championship teams, veteran guys that young people can look up to, I think, is important to have," Fox said. "I've always believed in a little bit of a blend of that youth, experience, and veteran know-how."

Lindsay H. Jones: 303-954-1262, twitter.com/bylindsayhjones

Copyright 2012 The Denver Post. All rights reserved.

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Aurora theater plans call for changes to theater 9

Redesign efforts at the Century Aurora 16 call for significant changes to theater 9, according to building plans filed with the city at the beginning of this month.

Theater 9, where 12 people were killed and at least 58 others were injured in a July 20 mass shooting, will become a Cinemark XD theater.

According to Cinemark's website, these XD "extreme digital" theaters features an oversize wall-to-wall and ceiling-to-floor screen. Officials with Cinemark declined comment Thursday.

According to the building plans, Kansas City, Mo.-based TK Architects developed the redesign and Colorado Springs-based TMS Construction is the contractor heading the project.

Costs are estimated at $950,000, according to the

building plan.

The building plan's official description of work calls for "interior and exterior" finish upgrades throughout the theater complex as well as upgrades in the auditoriums "and conversion of one auditorium to be a large-screen format auditorium."

The Aurora Sentinel reported Thursday that original plans from 1997 called for 421 seats in theater 9 and the new plans call for 360 seats. In September, Cinemark president Tim Warner told Aurora Mayor Steve Hogan that the company would reopen the theater complex. Warner at the time said the company hoped to reopen the theater in the New Year.

Copyright 2012 The Denver Post. All rights reserved.

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Gessler gave self $1,400 to cover expenses without receipts

Colorado Secretary of State Scott Gessler took what was left in his own discretionary fund in 2011 and used it to give himself a $1,400 payout, a sum that a spokesman says was for "day-to-day" expenses even though Gessler submitted no receipts to explain what those costs were.

Critics say the payout to the Republican secretary of state looks a lot like a self-given bonus, and the revelation comes as two Democratic state senators are calling for an audit of Gessler's spending in response to reports he used state funds to attend the Republican National Convention.

The $1,400 payout occurred at the close of the state's 2010-11 fiscal year, which ended in June 2011. Gessler submitted a request to his chief financial officer

"for any remaining discretionary funds," which swept what Gessler had not already spent from the $5,000 fund.

But unlike other requests Gessler submitted for reimbursement, there were no receipts or documentation attached to this request.

"It was to cover general costs — day-to-day meals and travel, general reimbursement — that weren't itemized," said Rich Coolidge, a spokesman for Gessler. "That was his (Gessler's) first six months in office and probably still getting the hang of things. I don't know why they weren't itemized."

Yet Gessler did submit numerous receipts for expenses within his first six months as secretary of state and for expenses after that point.

"I think some of those receipts simply weren't itemized and weren't collected," Coolidge said. "It's just like the legislators' per diem: They just have to show up to work, and they get that dollar amount. It's for expenses in office, and that's what that discretionary fund was for."

Gessler likely had even more in unreimbursed costs, Coolidge said.

Luis Toro, director of the left-leaning Colorado Ethics Watch, said his group had added the news of Gessler's $1,400 payout to a request it had submitted to Denver District Attorney Mitch Morrissey to investigate the secretary of state for possible embezzlement of state funds. The group first asked for an investigation after learning Gessler used his discretionary fund for a trip that included a stop at a GOP lawyers meeting and the Republican National Convention.

"The discretionary fund is supposed to be used for state business, not to pay yourself a bonus," Toro said, noting the state controller's office recorded the payout as "other employee benefits."

Meanwhile, state Sens. Pat Steadman, D-Denver, and Lois Tochtrop, D-Thornton, have sent a letter to the Legislative Audit Committee requesting a state audit of Gessler's expenditures. However, state Rep. Cindy Acree, R-Aurora, the committee chairwoman, has delayed consideration of the request until December.

Tim Hoover: 303-954-1626, thoover@denverpost.com or twitter.com/timhoover

Copyright 2012 The Denver Post. All rights reserved.

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Accused in poisoning death of mother, suspect says he was left out of her will

A Centennial man who says he was left out of his mother's will allegedly poisoned her, dismembered her body, stored it briefly in a freezer and then drove around the state in her SUV for several days until he was arrested early Wednesday with body parts in the back seat.

The man, Ari Misha Liggett, 24, made his first court appearance Thursday in Arapahoe County District Court. He is being held without bail and faces a charge of first-degree murder. He will be formally advised of the charge Tuesday morning.

The Arapahoe County Coroner's Office on Thursday afternoon identified the body as that of Liggett's mother, Beverly Liggett, 56.

"You can imagine, it's a hard time," Ron Liggett, Ari Liggett's father and Beverly Liggett's

ex-husband, told The Denver Post.

Monday evening, Beverly Liggett's boyfriend, Seth Masia, told authorities that he hadn't heard from her since Sunday but had received text- message and e-mail replies to messages from him that he thought had come from her son. Beverly Liggett's daughter also reported that she could not reach her mother. When Ron Liggett tried to reach his ex-wife, the phone was answered by Ari Liggett, who pretended to be his mother, court documents say.

Masia and Ron Liggett made a missing-person report. Police went to Beverly Liggett's house on East Peakview Avenue and found her vehicle missing but her purse and keys still in the house.

Court records show that during a search of the home, investigators found traces of human blood in the freezer and bathtub. Also, a hand saw and a large kitchen knife were on the top rack of the dishwasher. There were nicks and chips on the edge of the bathtub.

Early Wednesday, a deputy working at the home noticed a car outside matching the description of her vehicle and put out a call over police radio.

A short time later, a Greenwood Village police officer pulled over the SUV. When the officer went to the vehicle, the driver, Ari Liggett, sped away and crashed into a concrete wall. He was arrested.

Police found Beverly Liggett's remains in two padlocked plastic storage bins in the back of the vehicle.

In court documents, Ari Liggett said he found his mother dead on her living-room floor and believed she committed suicide by ingesting potassium cyanide. He said he panicked and tried to put her body in a freezer, according to the arrest affidavit.

The search of the home found potassium cyanide, a poisonous compound that can cause people who consume it to lose consciousness, vomit and die. Court records indicated that investigators also found vomit in the house.

Ari Liggett told investigators that he and two friends he hired to help with the body drove to Gunnison in his mother's vehicle. At some point, the friends left.

Liggett told authorities he had planned to put the remains in a tub with vinegar and store them in a storage unit "in hopes that police would be unable to identify the prints or dental records," the affidavit said.

But he said he didn't have enough money for a storage unit, the affidavit said, and drove back home to get his PlayStation to pawn it for cash.

While being questioned by authorities, Liggett said he had recently learned that his mother did not include him in her will. According to the arrest affidavit, he also told investigators that his "definition of right and wrong may differ from what others think, but he knows what society and the law consider to be right and wrong."

Ron Liggett told 9News that his son has a documented, lifelong history of mental illness.

"We're failing our society in terms of mental-health treatment, prevention and resources," he said.

Staff writer Joey Bunch contributed to this report.

Carlos Illescas: 303-954-1175, cillescas@denverpost.com or twitter.com/cillescasdp

Copyright 2012 The Denver Post. All rights reserved.

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USA Pro Challenge brought in million spectators

USA Pro Challenge organizers reported Thursday that the week-long August bicycle race drew 1 million spectators — matching last year's inaugural — across its 683-mile route through 12 Colorado towns.

Organizers said the privately funded race stirred $99.6 million in spending, up from $83.5 million last year.

Research firm IFM Global surveyed 2,000 attendees in host cities and along the route to establish an economic impact of $81.5 million spent on lodging, food, transportation and entertainment. The rest came from race support.

The IFM report said spectators from 25 states lined the course, and 53 percent of spectators came from outside Colorado and said they would not have traveled to the state if not for the race. More than three-quarters of the spectators surveyed said they were likely to return next year.

"This race showcases Colorado and provides an incredible economic impact that will hopefully be here for years to come," race chief Shawn Hunter said in Thursday's statement.

In its own survey of host cities, The Denver Post found that visitation was around 5,000 to 7,500 at each of the first few stops of the race in Telluride, Montrose, Crested Butte and Gunnison. Crowds began swelling, with 10,000 to 15,000 in Aspen, Beaver Creek and Breckenridge.

Numbers for the first half of the race fell below expectations. Leaders in some communities said they were prepared for at least twice as many spectators. The Forest Service was braced for tens of thousands atop Independence Pass outside Aspen and counted fewer than 1,500, said White River National Forest public-affairs officer Bill Kight. Nevertheless, all host cities embraced the race, noting the long-term value from the race's exposure and televised coverage.

At Colorado Springs, race organizers estimated more than 50,000

spectators lined city streets to see the Stage 5 finish.

The crowds in Golden, Boulder and Denver were huge, with hundreds of thousands lining the route from Golden to Boulder and for the downtown time trial in Denver.

Boulder's Open Space and Mountain Parks counted 10,000 spectators lining Boulder's climactic finish on Flagstaff Mountain, roughly a third of the number expected for the final 4-mile ascent.

Steve Johnson, president and chief of USA Cycling, said the USA Pro Challenge crowds were on par with the 7-year-old Tour of California.

"The crowds on the Western Slope were smaller than the crowds at the Front Range. However, the crowds on the Boulder-Flagstaff stage were unlike anything I have ever seen in

the U.S.," Johnson said.

Most host cities across Colorado reported increased sales-tax collections for August.

"We tried to take as broad and deep a sample as possible to get an accurate representation," said David Porthouse, vice president at IFM Global.

Porthouse's surveys found that each person attended an average of two stages, and his team relied on law enforcement and race organizers to count spectators along the route.

Porthouse said his estimates reflect "a conservative take on who was there."

Beyond the bump from spending, the race generated media coverage internationally and strong online interest.

"It was like a multiday infomercial for Colorado. If you are trying to position the state as a summer destination and a cycling destination, I think they did it well," said Darrin Duber-Smith, a professor at Metropolitan State University of Denver who specializes in sports marketing.

Jason Blevins: 303-954-1374, jblevins@denverpost.com or twitter.com/jasontblevins

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USA Pro Challenge economic impact

The Post compiled sales-tax revenue and visitor impact statistics in an effort to gauge the economic impact of the race.

Durango

Race organizers in Durango are compiling a race impact report and declined to estimate the number of spectators who watched the race start. The city's sales and use tax for August 2012 was $1.27 million, a 5.7 percent increase from the previous August. August 2012 sales tax collections for Durango were the highest for the month since 2008.

Bus ridership for the city, which provided race-day parking for 2,850 cars and 675 bikes, reached 2,617 for the Aug. 20 start of the race, including 340 riders from the race parking lots assembled at the La Plata County Fairgrounds. The previous Monday, without any event, Durango's trolley and loop buses saw 2,100 riders.

Durango saw lodging occupancy of 83.6 percent in Aug 2012, the exact same percentage as August 2011, according to the Colorado Hotel and Lodging Association's August Rocky Mountain Lodging Report.

Telluride

The Town of Telluride, where local organizers estimated the Pro Challenge drew about 6,000 for the finish of Stage 1 on Monday Aug. 20, saw a 21 percent jump in sales tax revenue in August, reaching $467,475. The August sales tax receipts marks the busiest for the month in the town's history. Lodging tax collections climbed 43 percent from the previous August, reaching $71,646. Retail sales tax collections, including food and drink, climbed 11 percent over the previous August, reaching $329,685.

Montrose

Local race organizers in the City of Montrose estimated 5,000 spectators watched the start of Stage 2 on Tuesday, Aug. 21. The city saw its August sales tax climb 0.8 percent over the previous August, reaching $1.04 million. The city's hotel and restaurant tax collections climbed 11.4 percent in August, reaching $39,575, up from $35,538 the previous August.

Crested Butte

Race organizers estimated between 5,000 and 7,500 spectators gathered for the Tuesday, Aug. 21 Stage 2 finish in Crested Butte and Mt. Crested Butte. The Town of Crested Butte saw its sales tax collections increase 1.7 percent in August 2012, reaching $292,196, compared to $287,301 in the previous August.

The local Mountain Express bus service saw a 25 percent increase in ridership on race day.

Gunnison

Race organizers in Gunnison said the crowd size for the Wednesday, Aug. 22 start of Stage 3 was similar to the crowd size of the city's 2011 stage start, about 5,000 to 7,500. The city saw its 3 percent sales tax collections drop in August to $374,938, compared to $378,882 for the previous August. The city's lodging tax for August dropped 12 percent from the previous year to $20,570 while restaurant and bar sales tax collections climbed 1.5 percent to $65,503.

Aspen

Aspen sold out every one of its 3,200 rentable units in the city on Aug. 22, the afternoon racers finished Stage 3 in Aspen and the night before the downtown Stage 4 start.

The city saw its August lodging tax collections (2 percent of total lodging spending) climb 23 percent in August, reaching $197,311, up from $160,137 in August 2011. The city's August sales tax climbed 5 percent, reaching $1.02 million, up from $976,000 the previous August. Aspen's lodging occupancy was 75.1 percent in August 2012, up from 68.5 percent in August 2011, according to the Colorado Hotel and Lodging Association's Rocky Mountain Lodging Report.

"One of the goals short term was to fill the lodging community when the race was in town and we reached that goal. It was just great energy," said Nancy Lesley, director of special events for the city. "Long term, the marketing value was just tremendous, something that can't be rivaled."

The Aspen city council recently approved the process to pursue a bid for the 2013 race and Aspen could be vying for a coveted start slot.

The Forest Service blew up an aerial photograph of racers cresting Independence Pass during Stage 3 on Wednesday, Aug. 22 and counted between 1,000 and 1,200 spectators lining the pass.

Avon

Race organizers in Beaver Creek estimated between 10,000 and 15,000 spectators gathered for the Stage 4 finish. The Town of Avon saw an 8.4 percent annual bump in its August 2012 sales tax and a 12.2 percent bump in its accommodation taxes. Vail, which hosted the 2011 race, saw it's lodging occupancy climb from 54.2 percent in August 2011 to 60.1 percent in August 2012.

The town's finance director, Scott Wright attributed the increases to both Beaver Creek's hosting of the Aug. 23 Pro Challenge and a new beer and wine festival on Aug. 4.

"And in general a higher volume of guests due to the much more pleasant temperatures than the Front Range," Wright said.

Avon suspended bus service for an hour during the race and the town saw 379 bus riders on the Aug. 23 race day, compared to 385 on the previous Thursday. Eagle County's ECO Transit numbers show 338 riders on the afternoon of the race, compared to 518 during the same timeframe the previous Thursday.

Tim Baker, the executive director of the Beaver Creek Resort Company estimated his resort hosted between 10,000 and 15,000 spectators for the race. He said "nearly all" of Beaver Creek's 1,700-room mix of hotel rooms, single-family homes and condos were booked on the night before the race arrived. Like every other host, 650 of those rooms were used by race organizers and booked at a discounted or even free rate.

Baker's survey of local business owners in the village show many "triple, even quadruple" the revenues of the same day the previous year, which did not involve an event.

Breckenridge

Race organizers in the Town of Breckenridge estimated 10,000 to 12,000 spectators gathered for the Friday morning start. The town saw spending on retail, restaurant and lodging climb 6 percent in August 2012, reaching $17 million, up from $16 million the previous August. Breckenridge vacationers spent $4.9 million on short-term lodging for August in Breckenridge, a 9 percent increase.

Breckenridge's net taxable sales in August continued the pace set earlier this summer, climbing 6.2 percent over the previous August to $23.2 million.

Lodging occupancy during the race was 56 percent for the race weekend of Thursday, Friday and Saturday. With the night before the start of Stage 5, Thursday, Aug. 24, saw lodging up 15 percent from the same day last year, while Friday and Saturday lodging declined. For the month, lodging occupancy fell in August to 41.2 percent, compared to 43.3 percent the previous August, according to the Colorado Hotel and Lodging Association's August Rocky Mountain Lodging Report.

A Breckenridge Resort Chamber survey of 71 businesses found sales for the Friday race-day were up 10 percent.

Race-day bus ridership in Breckenridge saw 438 passengers, compared to 375 on the previous Friday.

"The general consensus is that the Pro Challenge is a good long-term brand and business builder and there is support in the business community and with our town council to bid for next year," said local race organizer Lucy Kay.

Colorado Springs

Local race organizers estimated 15,000 people gathered in downtown Colorado Springs to watch the race and another 35,000 lined city streets from the route exit off Hwy. 24 to the finish line, according to city spokeswoman Cindy Aubrey.

Colorado Springs saw its sales and use tax collections - minus audit revenue - climb 9.7 percent in August 2012, reaching $11.1 million, up from $10.1 million in the previous August. This year's August was the busiest in terms of sales and use tax collections in at least six years. Building material and car sales led the uptick, with lodging revenue declining 2.3 percent. The city's lodger's and auto rental tax revenue fell 4.33 percent for the month.

Bus ridership for the Aug. 24 race reached 8,506, down from the previous Friday's ridership of 8,874.

Colorado Springs lodging occupancy was 74.5 percent in August 2012, compared to 77.8 percent in August 2011, according to the Colorado Hotel and Lodging Association's August Rocky Mountain Lodging Report.

Boulder

The City of Boulder has not released its August sales tax receipts and is preparing a race impact report with crowd estimates. The Colorado Hotel and Lodging Association's Rocky Mountain Lodging Report shows the city's 54,033 rooms were 88.5 percent occupied in August, compared to 85 percent occupancy in August 2011. . Boulder's Open Space and Mountain Parks counted 10,000 lining Boulder's climactic finish on Flagstaff Mountain, roughly a third of the number expected for the final ascent.

Denver

Denver's lodging tax collections reached $6.3 million in August 2012, compared to $5.9 million in August 2011 and $4.7 million in 2010. The Colorado Hotel and Lodging Association's Rocky Mountain Lodging Report shows the city's 201,221 downtown rooms were 82.9 percent occupied in August, compared to 84.1 percent occupied in the previous August.

Copyright 2012 The Denver Post. All rights reserved.

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Five victims from Fero's Bar remembered in Denver

The name "Young" is spelled out in large letters formed from votive candles outside Fero's Bar & Grill — part of the growing memorial for bar owner Young Fero and the four others killed during what police believe was a robbery.

"She never thought anything like this could happen," said patron and friend Jerry Barnett.

Two weeks ago, Barnett asked Fero, 63, if she ever got scared being alone in the bar at 357 S. Colorado Blvd. She thought the question was ridiculous.

"She told me nothing had happened since '84, when the place opened, so she wasn't worried," Barnett said.

But something did happen early Wednesday morning.

Police suspect that three men, who were arrested Thursday, murdered the

five people inside, including Fero, and then set the place on fire to cover their tracks.

The five victims are remembered as wonderful, fun and sweet people.

The youngest victim, 22-year old Daria "Dasha" Pohl, worked at a Holiday Inn just a block south of the bar.

"We are all a family here, and we are grieving with her family," John Dilley, general manager of the Holiday Inn, said.

Pohl was a valued employee whose death shocked the entire staff, Dilley said.

Pohl was a sophomore at Metropolitan State University of Denver and planned to transfer to the University of Colorado Denver to pursue a business degree. She held several waitressing jobs, said Bert Kasben, a neighbor. On the side, she looked after people's dogs.

Ross Richter, 29, of Overland Park, Kan., had worked as a river ranger for the Bureau of Land Management since 2009.

Teri Parvin, park ranger, said everyone who worked with Richter was devastated. "He was a great friend," she said. "You always smiled when you saw him, no matter what mood you were in."

Richter was a polite and thoughtful man who was promoted to team leader of the bureau's Kremmling field office because of his work ethic, Parvin said.

Richter's

father, James, told The Associated Press on Thursday that his son graduated from Kansas State University and spent most of his time outdoors.

Those who knew Kellene Fallon, 45, affectionately referred to her as "crazy Kelly" because she liked to make people laugh by acting silly. A regular patron at the bar, she stayed in a motel in the area and worked assorted jobs, friends said.

"She was a wonderful, funny person," said former Fero's bouncer Jerry TenBrink.

Another victim, Tereasa Beesley, 45, grew up in the eastern Montana town of Sidney, according to her Facebook page.

"I am still a teenager at heart, love to go out and socialize, but do take my home life with my 2 kids very seriously," her page says.

Cliff Beesley, of Yuma, Ariz., told the Associated Press that Tereasa recently bought the Maxim Lounge, a bar about 4 miles west of Fero's.

"My guess is she left that bar and went to the other bar and just happened to be in the wrong place at the wrong time," he told the AP.

Cliff Beesley said that he and Tereasa owned two bars in Yuma and each took one when they divorced six years ago.

He said their 15-year-old daughter, Sierra, and Tereasa's 20-year-old son, Brandon Kappel, are "pretty torn up."

Some of those who stopped by the memorial Thursday didn't know any of the victims but felt they had to pay their respects.

"It's just so sad," said Steve Padgett, who visited with wife Judy. "It's been so

awful for Colorado lately, it just seems endless."

Irene Bush brought flowers to the location, and while she hadn't been to the bar for some time, she had fond memories of the customers and of Fero.

"It was a fun place," she said. "Young took care of everyone."

Ryan Parker: 303-954-2409, rparker@denverpost.com or twitter.com/ryanparkerdp

The Associated Press contributed to this report.

Copyright 2012 The Denver Post. All rights reserved.

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Economy and television shows make pawnshops cool again

Marilyn Vigil watched patiently as the pawnshop employee weighed the several gold chains she hoped would amount to a needed loan.

Unemployed for months despite a newly earned master's degree, Vigil worried about upcoming expenses with the onset of cooler weather.

"The economy's not getting any better, and winter's coming, and I need tires for my car," said Vigil, an Arvada resident who visited EZPawn in west Denver for the first time.

Pawning her chains — "They would just stay in the jewelry box, so why not get some use out of them?" — was better than using a credit card, she said.

"You can't trash your credit at a pawnshop," she said.

Vigil is part of a booming national trend of renewed interest in pawnshops from those who long ago wrote the industry off as a dumping ground of stolen items for street thugs and drug users.

While pawnshops say that's not true — fewer than one-tenth of 1 percent of items are of "questioned ownership," the industry touts — it has been an unwanted moniker.

But the popularity of hit reality-television shows such as "Pawn Stars" and "Cajun Pawn Stars" on History, and "Hardcore Pawn" on TruTV, has caused a resurgence of interest and a change of heart, according to the National Pawnbrokers Association.

That and a crippling economy have propelled pawn into a $10 billion industry with annual growth rates hitting 10 percent, enough to attract publicly traded companies such as Texas-based EZCorp. They sit next to pawnshops owned by families for a half century or longer, still the bulk of the business.

Now, it's as common to see customers in business attire as it would be jeans and a T-shirt.

"The pawnshop image has changed in the eyes of the American consumer, largely because of TV shows bringing viewers through a front door they might not have opened," said NPA spokesman Emmett Murphy.

In a phrase, pawnshops are cool.

"It's been more of a

transition that's become particularly acute since the financial crisis. Over the last five years, it's more mainstream than ever before," said Eric Garman, president of the Colorado Pawnbrokers Association and a regional director of operations at EZCorp, which owns EZPawn stores here.

"We actually are the easiest industry to get money, within minutes," he said. "There are not that many places where you can do that."

As the economy roughed up consumers no matter their income, meeting expenses in the face of unemployment for some meant credit cards.

"There comes a point where you just can't ruin your credit because you have to live with that for a very long time," said Brian Baron, 43, owner of Baron's Sprinkler and Landscaping in Aurora.

"It's much better to pawn something you might not use or need than to lose something bigger, like a car payment or your credit," the longtime pawnshop customer said.

The seasonality of Baron's business — he's reliant on sprinkler blow-out orders this time of year — means wintertime can be lean for work.

"If there's not lots of snow, you need cash to get by," he said. "I have five kids, and for Christmas presents, a couple of rings will help with that until tax time comes."

A burgeoning foreclosure crisis added to the pressure, and as the crisis blossomed, more people pawned.

"There was a period of time, around the height of the crisis, where the industry saw a lot of people who were trying to save their homes, with many saying they were having trouble with unemployment and needed to make their mortgage or their rent," Garman said.

Nationally, the average amount of a pawnshop loan — all pawn transactions are purchase agreements with a "back-out" clause that allows individuals to redeem their item for a moderate flat interest charge over 30 days — is about $150, according to an NPA survey. In 2010, the group says, it was $100.

And of those loans, about 85 percent are redeemed.

In Colorado, about 270 shops make up the industry, with roughly 60 stores each in Denver and Colorado Springs.

The biggest change, industry experts agree, is the shift in customer demographics.

"We saw a lot of real-estate and mortgage brokers, teachers and that sort of customer, people not normally thought of as using a pawnshop," said Tim Lanham, the former owner of about 50 shops and a past president of the CPA.

The shift, he said, coincides with the popularity of reality shows that feature pawnshops, where people from all walks of life bring in a variety of items, some steeped more in history than value.

The shows have created a few false realities, shop owners say.

"What strikes me is the misconception that I can just call someone up who is an expert on anything I need," mused Shirley Widom, whose family has owned Pacific Jewelry & Loan in Aurora since it began life in 1948 in downtown Denver. "We're jacks of all trades and masters of none."

A graduate degree in gemology helps Widom discern good from not-so-good stones in jewelry. But she'll occasionally get the television buff who gets a wild idea from one of the shows.

"Some of those things on the shows are kind of ridiculous," she said. "Who's going to buy an old barber chair or a shrunken head?"

She stops a moment in thought, then adds with a slight chuckle: "Though there was that one guy with the medical- school skeleton that I liked. But it had broken kneecaps and a cracked cranium, obviously a guy who didn't pay his bill."

She said she passed.

David Migoya: 303-954-1506, dmigoya@denverpost.com or twitter.com/davidmigoya

Copyright 2012 The Denver Post. All rights reserved.

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