Judge in NY scolds hedge fund scammer

NEW YORK -- A hedge fund cheat who tried to fake his own death and spent nearly a month as a fugitive told a judge Thursday that he really did try to commit suicide while on the run, saying he thought it would be better to do himself in than turn himself in.

On Thursday, McMahon was unsympathetic. She told Israel, who scammed hundreds of millions of dollars from investors, that he had to forfeit his bail. She ordered him to begin serving his sentence while he faces a new charge of failing to report to prison, which carries a potential 10-year penalty.

The judge refused to refer Israel to the prison medical center to which he had been assigned before he fled.

"It was thrown in my face the last time. I'm now out of it," McMahon said.

For Old Glory, sewn in the U.S.A. is the law

In Minnesota, at least, that American flag you're buying for this July 4th will be made in the U.S.A. A new state law requires that all Old Glories sold in Minnesota must be American made. Retailers say they haven't noticed any particular difference in sales, although the U.S.-made flags are more expensive.

"We've only sold American-made flags for years, and we've never had problems with sales," said Matt Knowlan, owner of American Flagpole and Flag in Lake Elmo, Minn. "The flag is the symbol of the United States, and it's how Americans show pride."

Last year, Arizona required its schools and public colleges to put an American-made flag in every classroom from junior high on up. Tennessee requires all U.S. flags bought via state contract to be made domestically, and similar legislation has been considered in New Jersey and Pennsylvania.

9/11 canine hero to be cloned

A celebrated hero, the retired Halifax, Nova Scotia, police dog can no longer use the hind legs that pushed him through the ruins of the World Trade Center as he sniffed for survivors. His hearing has faded and, at 15, his dog days seemed numbered -- until science gave him a second chance at life. A San Francisco genetics company has selected the German shepherd to be one of the world's first commercially cloned pets after his master -- a former Canadian police officer now pursuing an acting career in Los Angeles -- won an essay contest with a futuristic prize.

The company, BioArts, will ship Trakr's DNA sample to the lab of its South Korean partner this month, and Trakr's double should be nipping at his tail by the end of the year.

"If he shows even 70 per cent of what Trakr had as far as skills, intuition and courage -- then without question I'm going to dust off my search-and-rescue gear and we'll go back to work," said James Symington, 42, who learned June 29 that he'll soon have a copy of his teammate and best friend

While cloning may sound sensible to any bereaved pet owner, the race to make a doggie version of Dolly the sheep has attracted its share of controversy. That includes a patent dispute involving BioArts and questions about the long-term health of cloned animals.

And while pet owners may soon be able to drop a small fortune for a facsimile of Fido, medical ethicists say there are no guarantees that Fido II's personality will match his friendly, loyal predecessor.

"The same dog can be a loving pet or a brutal killer depending on how it's raised," says Arthur Schafer, director of the University of Manitoba's Center for Professional and Applied Ethics. "If the demand for cloning is coming from wealthy pet owners, I think they're in for disappointment. The technology is in its very early days."

Bush seeks new start for troubled hospital

BETHESDA, Md. -- President Bush helped break ground Thursday for a new military medical center to replace Walter Reed hospital, whose reputation was soiled by allegations of shoddy care for war veterans.

Bush didn't talk about the institution's problems, instead lauding the work of the military medical staff. The new Walter Reed National Medical Center will merge the duties of the existing Army facility in Washington, which came under harsh criticism last year, with the operations of the National Naval Medical Center in Bethesda. "You soothe the pain and fear of patients, you console families who keep constant vigil over their loved ones, you share the joy of a neurology patient's first recovered words and an amputee's first steps," Bush said at the groundbreaking ceremony in Bethesda. "When required, you can show tough love, but you also like to remind patients that laughter is the best medicine," Bush said. "And we look forward to the day when the joy of recovery echoes through the halls of a new medical facility that will be built here."

When construction is completed in 2011, the 6.7 million-square-feet facility will have 345 beds. It will merge the resources of the Army, Navy and Air Force, and make it easier for medical professionals from all three services to collaborate and treat patients.

The image of Walter Reed Army Medical Center, which had already been listed for closure in 2005, was tainted by news of squalid conditions and inadequate outpatient care. The disclosures stunned the public, outraged Capitol Hill and forced three high-level Pentagon officials to step down.

Bush met with soldiers once housed in Building 18, who endured moldy walls, rodents and other problems that went unchecked until reported by the media. Bush later apologized to troops, saying that the problems at Walter Reed were caused by bureaucratic and administrative failures.

Bush didn't criticize Walter Reed, saying only that the new complex will benefit from the work done by the Dole-Shalala wounded warriors commission, which issued recommendations for modernizing and improving the nation's military health care system.

Bush created the commission, led by former Sen. Robert Dole, R-Kan., and Donna Shalala, President Clinton's secretary of health and human services, to make recommendations following the Walter Reed disclosures.