State prisons not ready to end court oversight, official says









SACRAMENTO — A court-appointed monitor said Friday that Gov. Jerry Brown's quest to end judicial oversight in state prisons is "not only premature, but a needless distraction" from improving care for mentally ill inmates.


Special Master Matthew Lopes cited dozens of suicides last year, long isolation instead of treatment and lapses in care as reasons federal oversight should continue.


Lopes' assessment, in a report filed Friday with the U.S. District Court, came after he visited two-thirds of California's prisons. He had intended to see all 33 lockups, he said, but soon determined that only Sacramento — not individual wardens — could fix the underlying problems with mental health treatment in the corrections system.








A spokeswoman for the California Department of Corrections and Rehabilitation said the agency would have a full response to the 609-page report later.


Brown wants the courts to halt oversight of the mental health services and withdraw orders to reduce overcrowding. He declared last week that California has "one of the finest prison systems in the United States" and that inmates get "far better" medical care, including mental health care, in prison than those outside.


Lopes disagreed.


"Any attempt at a more abrupt conclusion to court oversight would be … not only premature but a needless distraction from the important work that is being done in the quality improvement project," he told the court.


He was especially critical of the suicide rate in California prisons.


He said there were at least 32 suicides in state prisons last year, averaging one every 11 days. Lopes said that translates to almost 24 suicides per 100,000 inmates, a 13% increase over 2011 and well above the national suicide rate of 16 deaths per 100,000 prisoners.


The state's high suicide rate prompted a 2010 court order to adopt suicide prevention practices. Lopes said the state has made progress on those steps, but fewer than one out of four prisons hold suicide prevention team meetings as required and only three prisons complied with the requirement for five-day follow-ups with inmates discharged from crisis care.


"The problem of inmate suicides … must be resolved before the remedial phase of the Coleman case can be ended," Lopes wrote, referring to the 2001 lawsuit that led to the appointment of a special master. "The gravity of this problem calls for further intervention. To do any less and to wait any longer risks further loss of lives."


Assistant Secretary of Communications Deborah Hoffman said, "We take suicides very seriously and have one of the most robust suicide prevention programs in the nation."


Lopes also said in his report that all 11 outpatient care hubs in the prison system still conduct inmate counseling sessions in public, despite the need for confidential settings, and 10 of those hubs fail to offer at least 10 hours of structured therapy per week, a provision Lopes said "should be made a priority."


A training program designed to help prison guards interact with mentally ill inmates and mental health providers showed no improvement in use-of-force incidents or missed treatment sessions, Lopes said.


He also documented instances of mentally ill inmates being housed for extended periods in isolation units. At Kern Valley State Prison, mentally ill offenders had been isolated as long as 292 days. The court compliance rate is 30 days.


Families of mentally ill inmates expressed their own frustration.


Blanca Gonzalez said her 31-year-old son's mental state has deteriorated since his incarceration. She said he was put into segregation on Thanksgiving and not moved to a psychiatric unit until last week.


"I am watching my son die in front of me and no one seems to care," Gonzalez said.


paige.stjohn@latimes.com





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A Google-a-Day Puzzle for Jan. 19











Our good friends at Google run a daily puzzle challenge and asked us to help get them out to the geeky masses. Each day’s puzzle will task your googling skills a little more, leading you to Google mastery. Each morning at 12:01 a.m. Eastern time you’ll see a new puzzle posted here.


SPOILER WARNING:
We leave the comments on so people can work together to find the answer. As such, if you want to figure it out all by yourself, DON’T READ THE COMMENTS!


Also, with the knowledge that because others may publish their answers before you do, if you want to be able to search for information without accidentally seeing the answer somewhere, you can use the Google-a-Day site’s search tool, which will automatically filter out published answers, to give you a spoiler-free experience.


And now, without further ado, we give you…


TODAY’S PUZZLE:



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Ken is a husband and father from the San Francisco Bay Area, where he works as a civil engineer. He also wrote the NYT bestselling book "Geek Dad: Awesomely Geeky Projects for Dads and Kids to Share."

Read more by Ken Denmead

Follow @fitzwillie and @geekdads on Twitter.



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FX May split off new FXX, targeting younger viewers: report






NEW YORK (TheWrap.com) – News Corp. may split its successful FX network into two, with the new network, FXX, focusing more on twentysomethings and comedy.


The new network could replace Fox Soccer, the Los Angeles Times said.Broadcasting & Cable reported the possible name and focus of the new channel.






“We’re constantly evaluating our programming offerings and this is just one notion we have considered over the past year or so,” a Fox spokesman told TheWrap.


The move would make sense given the vast content available to FX, said Brad Adgate, director of research for Horizon Media.


“They’re probably going to get more viewers with a second entertainment network,” he told TheWrap. “Why not create a second?”


If Fox Soccer becomes FXX, Fox could potentially air its games on the new network it is developing to compete with ESPN, Adgate noted.


News Corp. also has the movie channel FXM.


The possible split for FX comes as the company has dramatically increased its content in recent seasons. Besides dramatic hits like “Justified,” “Sons of Anarchy” and “American Horror Story,” it also airs comedies including the highly rated “It’s Always Sunny in Philadelphia” and the acclaimed “Louie.”


The network is also building a late-night lineup with “Totally Biased With W. Kamau Bell” and “BrandX With Russell Brand.”


The split would follow the successful approach of other conglomerates. NBC Universal has USA, Bravo and E!, among other cable stations, while Turner airs its dramas on TNT and comedies on TBS. AMC Networks is taking a similar approach, airing dramas on AMC and developing new ones for Sundance as IFC focuses on comedy.


News Corp. may split its successful FX network into two, with the new network, FXX, focusing more on twentysomethings and comedy.


TV News Headlines – Yahoo! News





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Business Briefing | Medicine: F.D.A. Clears Botox to Help Bladder Control



Botox, the wrinkle treatment made by Allergan, has been approved to treat adults with overactive bladders who cannot tolerate or were not helped by other drugs, the Food and Drug Administration said on Friday. Botox injected into the bladder muscle causes the bladder to relax, increasing its storage capacity. “Clinical studies have demonstrated Botox’s ability to significantly reduce the frequency of urinary incontinence,” Dr. Hylton V. Joffe, director of the F.D.A.’s reproductive and urologic products division, said in a statement. “Today’s approval provides an important additional treatment option for patients with overactive bladder, a condition that affects an estimated 33 million men and women in the United States.”


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Analysis: Amid Tears Lance Armstrong Leaves Unanswered Questions in Oprah Winfrey Interview





In an extensive interview with Oprah Winfrey that was shown over two nights, Lance Armstrong admitted publicly for the first time that he doped throughout his cycling career. He revealed that all seven of his Tour de France victories were fueled by doping, that he never felt bad about cheating, and that he had covered up a positive drug test at the 1999 Tour with a backdated doctor’s prescription for banned cortisone.




Armstrong, the once defiant cyclist, also became choked up when he discussed how he told his oldest child that the rumors about Armstrong’s doping were true.


Even with all that, the interview will most likely be remembered for what it was missing.


Armstrong had not subjected himself to questioning from anyone in the news media since United States antidoping officials laid out their case against him in October. He chose not to appeal their ruling, leaving him with a lifetime ban from Olympic sports.


He personally chose Winfrey for his big reveal, and it went predictably. Winfrey allowed him to share his thoughts and elicited emotions from him, but she consistently failed to ask critical follow-up questions that would have addressed the most vexing aspects of Armstrong’s deception.


She did not press him on who helped him dope or cover up his drug use for more than a decade. Nor did she ask him why he chose to take banned performance-enhancing substances even after cancer had threatened his life.


Winfrey also did not push him to answer whether he had admitted to doctors in an Indianapolis hospital in 1996 that he had used performance-enhancing drugs, a confession a former teammate and his wife claimed they overheard that day. To get to the bottom of his deceit, antidoping officials said, Armstrong has to be willing to provide more details.


“He spoke to a talk-show host,” David Howman, the director general of the World Anti-Doping Agency, said from Montreal on Friday. “I don’t think any of it amounted to assistance to the antidoping community, let alone substantial assistance. You bundle it all up and say, ‘So what?’


Jeffrey M. Tillotson, the lawyer for an insurance company that unsuccessfully withheld a $5 million bonus from Armstrong on the basis that he had cheated to win the Tour de France in 2004, said his client would make a decision over the weekend about whether to sue Armstrong. If it proceeds, the company, SCA Promotions, will seek $12 million, the total it paid Armstrong in bonuses and legal fees.


“It seemed to us that he was more sorry that he had been caught than for what he had done,” Tillotson said. “If he’s serious about rehabbing himself, he needs to start making amends to the people he bullied and vilified, and he needs to start paying money back.”


Armstrong, who said he once believed himself to be invincible, explained in the portion of the interview broadcast Friday night that he started to take steps toward redemption last month. Then, after dozens of questions had already been lobbed his way, he became emotional when he described how he told his 13-year-old son, Luke, that yes, his father had cheated by doping. That talk happened last month over the holidays, Armstrong said as he fought back tears.


“I said, listen, there’s been a lot of questions about your dad, my career, whether I doped or did not dope, and I’ve always denied, I’ve always been ruthless and defiant about that, which is probably why you trusted me, which makes it even sicker,” Armstrong said he told his son, the oldest of his five children. “I want you to know it’s true.”


At times, Winfrey’s interview seemed more like a therapy session than an inquisition, with Armstrong admitting that he was narcissistic and had been in therapy — and that he should be in therapy regularly because his life was so complicated.


In the end, the interview most likely accomplished what Armstrong had hoped: it was the vehicle through which he admitted to the public that he had cheated by doping, which he had lied about for more than a decade. But his answers were just the first step to clawing back his once stellar reputation.


On Friday, Armstrong appeared more contrite than he had during the part of the interview that was shown Thursday, yet he still insisted that he was clean when he made his comeback to cycling in 2009 after a brief retirement, an assertion the United States Anti-Doping Agency said was untrue. He also implied that his lifetime ban from all Olympic sports was unfair because some of his former teammates who testified about their doping and the doping on Armstrong’s teams received only six-month bans.


Richard Pound, the founding chairman of WADA and a member of the International Olympic Committee, said he was unmoved by Armstrong’s televised mea culpa.


“If what he’s looking for is some kind of reconstruction of his image, instead of providing entertainment with Oprah Winfrey, he’s got a long way to go,” Pound said Friday from his Montreal office.


Armstrong acknowledged to Winfrey during Friday’s broadcast that he has a long way to go before winning back the public’s trust. He said he understood why people recently turned on him because they felt angry and betrayed.


“I lied to you and I’m sorry,” he said before acknowledging that he might have lost many of his supporters for good. “I am committed to spending as long as I have to to make amends, knowing full well that I won’t get very many back.”


Armstrong also said that the scandal has cost him $75 million in lost sponsors, all of whom abandoned him last fall after Usada made public 1,000 pages of evidence that Armstrong had doped.


“In a way, I just assumed we would get to that point,” he said of his sponsors’ leaving. “The story was getting out of control.”


In closing her interview, Winfrey asked Armstrong a question that left him perplexed.


“Will you rise again?” she said.


Armstrong said: “I don’t know. I don’t know. I don’t know what’s out there.”


Then, as the interview drew to a close, Armstrong said: “The ultimate crime is the betrayal of these people that supported me and believed in me.”


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Colorado movie theater reopens after shooting









AURORA, Colo. — A quiet crowd gathered Thursday at what is now Century Aurora for an "evening of remembrance." Young employees offered candy, sodas and popcorn to visitors who mingled inside the complex, which had been painted soft blues, greens and yellows.


The movie theater where a gunman killed 12 people and injured dozens more last July reopened under a new name after extensive remodeling. The governor, mayor, theater officials and a few hundred victims, families and community members attended, but relatives of several who died boycotted the event.


In one aisle, a young man comforted a young woman as she cried. A small room was set up with tables and tissues for those who might need a quiet space to grieve.





Corbin Dates, 23, who said he was in the second row of Theater 9 during the rampage and escaped with a small burn from a bullet casing, called the event empowering.


"Evil doesn't have the best of me and it never will," he said.


But Scott Larimer, whose son John Larimer, 27, was killed, did not come. He was among those who called for a boycott after receiving a brief email shortly after Christmas inviting him to the ceremony and to an unspecified movie.


"They were treating it like I lost my raincoat there and not my son," he said. "I'm not sure if they're just trying to drum up support so they can just reopen their theater and make some money, or what it is."


The fate of the Century 16 theaters was the subject of much debate in the aftermath of one of the worst mass shootings in U.S. history, for which James E. Holmes, 25, has been ordered to stand trial. City officials launched an online survey to gauge public opinion and said the response was overwhelming in favor of reopening.


But earlier this month, 15 family members of nine people killed wrote a letter to Cinemark, the theater's owner, blasting the invitation to the opening and criticizing the company for showing "ZERO compassion to the families of the victims whose loved ones were killed in their theater."


One of them, Jerri Jackson, said Cinemark had never contacted her before she received the invitation, which was sent by a victims' group on Cinemark's behalf.


"I would have thought early on that they would have contacted us and offered their condolences, tried to do something for the families, but they've done nothing," she said. Her son Matt McQuinn, 27, was among the dead.


Some who came to the ceremony had a different perspective.


"We will not let this tragedy define us," Aurora Mayor Steve Hogan said during the 30-minute remembrance. "Aurora is strong, Aurora is caring, and our focus remains on the road before us."


Democratic Gov. John Hickenlooper acknowledged the families who were absent but praised Cinemark and its chief executive for working closely with the community in the aftermath of the shooting.


"Everyone heals. Some slower, some in different ways. Some wanted this theater open, some didn't," Hickenlooper said. "For many here tonight, this is the path to healing."


After the ceremony, everyone was invited to stay for a screening of "The Hobbit."


Tom Sullivan, whose son Alex Sullivan, 27, died, came to the remembrance. He and other family members spent several minutes exploring the complex before taking a seat for the ceremony. He sees the theater as part of his community, which supported him after the death of his son.


"The people of Aurora decided that's what they wanted," to reopen the theater. "So I decided, 'Well, that's what we'll do,'" he said. "The people of Aurora have done everything they can to help us through this very difficult time."


paloma.esquivel@latimes.com





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A Google-a-Day Puzzle for Jan. 18











Our good friends at Google run a daily puzzle challenge and asked us to help get them out to the geeky masses. Each day’s puzzle will task your googling skills a little more, leading you to Google mastery. Each morning at 12:01 a.m. Eastern time you’ll see a new puzzle posted here.


SPOILER WARNING:
We leave the comments on so people can work together to find the answer. As such, if you want to figure it out all by yourself, DON’T READ THE COMMENTS!


Also, with the knowledge that because others may publish their answers before you do, if you want to be able to search for information without accidentally seeing the answer somewhere, you can use the Google-a-Day site’s search tool, which will automatically filter out published answers, to give you a spoiler-free experience.


And now, without further ado, we give you…


TODAY’S PUZZLE:



Note: Ad-blocking software may prevent display of the puzzle widget.




Ken is a husband and father from the San Francisco Bay Area, where he works as a civil engineer. He also wrote the NYT bestselling book "Geek Dad: Awesomely Geeky Projects for Dads and Kids to Share."

Read more by Ken Denmead

Follow @fitzwillie and @wiredgeekdad on Twitter.



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Ending “The Office”: no Steve Carell, and someone’s getting fired






NEW YORK (TheWrap.com) – “The Office” is likely to close without a return appearance by Steve Carell’s Michael Scott, creator Greg Daniels says. But Mindy Kaling and B.J. Novak are expected back for the end of the show, and the final episodes will include someone in the Dunder Mifflin office getting fired.


“Steve is very much of the opinion that the ‘goodbye Michael’ episode and the story arc that we did leading up to it was his goodbye to the fans and to the show, and that the stuff we’re doing this season is the goodbye that the rest of the show gets to have,” Daniels said at a Television Critics Association panel on Wednesday.






“So at the moment we don’t have any plans for him to come back,” Daniels added. “There’s still a lot of good things that we have planned for the rest of the goodbyes.”


Not all of those goodbyes will take place in the two-part finale of the show. Daniels said the series will resolve with a story involving the documentary crew that has been chronicling life at a typical Scranton, Pa., office for the last nine seasons.


“If you look at how many characters there are here, and you think that it’ll be our 200th half hour when we do the finale, I don’t think we’re planning on packing everything into the last episode. I would encourage people, if you are waiting for the end of “The Office” to re-tune in, I would start doing it right away,” Daniels said.


Daniels adapted “The Office” from the U.K. series of the same name, created by Ricky Gervais and Stephen Merchant. He said the British series was ripe for adaptation because it felt like a toy that “still had some play in it” when it ended after just two short seasons and a Christmas special.


Now he is putting the toy away.


“There’s an episode tomorrow night that is very good, and then the one after that is really what I would say is the beginning of the end, where we start to break down what’s going on with this documentary and see behind the scenes and who’s involved,” he said.


Daniels said eighteen of the show’s final 24 episodes are written. In the fifteenth episode, he said, someone will be fired. He declined to say whether the person being fired is a longtime cast member or a new one.


“Someone is fired. I will hint at that,” he said. “There’s drama and someone has to get fired.”


The firing episode is expected to air February 14.


Daniels declined to give any hints about how the series could end, but told TheWrap his favorite TV show ending is the conclusion of “Newhart.”


“Newhart” famously ended with Bob Newhart’s character from his previous series, “The Bob Newhart Show,” waking up with his wife from that series, played by Suzanne Pleshette, and saying he had a strange dream.


It turns out he has dreamed the events of “Newhart.”


So… no chance “The Office” will end with Carell waking up from a dream?


“No, it’s been done,” he said. “You’ve got to figure out another thing.”


TV News Headlines – Yahoo! News





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The Neediest Cases: Medical Bills Crush Brooklyn Man’s Hope of Retiring


Andrea Mohin/The New York Times


John Concepcion and his wife, Maria, in their home in Sheepshead Bay, Brooklyn. They are awaiting even more medical bills.







Retirement was just about a year away, or so John Concepcion thought, when a sudden health crisis put his plans in doubt.





The Neediest CasesFor the past 100 years, The New York Times Neediest Cases Fund has provided direct assistance to children, families and the elderly in New York. To celebrate the 101st campaign, an article will appear daily through Jan. 25. Each profile will illustrate the difference that even a modest amount of money can make in easing the struggles of the poor.


Last year donors contributed $7,003,854, which was distributed to those in need through seven New York charities.








2012-13 Campaign


Previously recorded:

$6,865,501



Recorded Wed.:

16,711



*Total:

$6,882,212



Last year to date:

$6,118,740




*Includes $1,511,814 contributed to the Hurricane Sandy relief efforts.





“I get paralyzed, I can’t breathe,” he said of the muscle spasms he now has regularly. “It feels like something’s going to bust out of me.”


Severe abdominal pain is not the only, or even the worst, reminder of the major surgery Mr. Concepcion, 62, of Sheepshead Bay, Brooklyn, underwent in June. He and his wife of 36 years, Maria, are now faced with medical bills that are so high, Ms. Concepcion said she felt faint when she saw them.


Mr. Concepcion, who is superintendent of the apartment building where he lives, began having back pain last January that doctors first believed was the result of gallstones. In March, an endoscopy showed that tumors had grown throughout his digestive system. The tumors were not malignant, but an operation was required to remove them, and surgeons had to essentially reroute Mr. Concepcion’s entire digestive tract. They removed his gall bladder, as well as parts of his pancreas, bile ducts, intestines and stomach, he said.


The operation was a success, but then came the bills.


“I told my friend: are you aware that if you have a major operation, you’re going to lose your house?” Ms. Concepcion said.


The couple has since received doctors’ bills of more than $250,000, which does not include the cost of his seven-day stay at Beth Israel Medical Center in Manhattan. Mr. Concepcion has worked in the apartment building since 1993 and has been insured through his union.


The couple are in an anxious holding pattern as they wait to find out just what, depending on their policy’s limits, will be covered. Even with financial assistance from Beth Israel, which approved a 70 percent discount for the Concepcions on the hospital charges, the couple has no idea how the doctors’ and surgical fees will be covered.


“My son said, boy he saved your life, Dad, but look at the bill he sent to you,” Ms.  Concepcion said in reference to the surgeon’s statements. “You’ll be dead before you pay it off.”


When the Concepcions first acquired their insurance, they were in good health, but now both have serious medical issues — Ms. Concepcion, 54, has emphysema and chronic obstructive pulmonary disease, and Mr. Concepcion has diabetes. They now spend close to $800 a month on prescriptions.


Mr. Concepcion, the family’s primary wage earner, makes $866 a week at his job. The couple had planned for Mr. Concepcion to retire sometime this year, begin collecting a pension and, after getting their finances in order, leave the superintendent’s apartment, as required by the landlord, and try to find a new home. “That’s all out of the question now,” Ms. Concepcion said. Mr. Concepcion said he now planned to continue working indefinitely.


Ms. Concepcion has organized every bill and medical statement into bulging folders, and said she had spent hours on the phone trying to negotiate with providers. She is still awaiting the rest of the bills.


On one of those bills, Ms. Concepcion said, she spotted a telephone number for people seeking help with medical costs. The number was for Community Health Advocates, a health insurance consumer assistance program and a unit of Community Service Society, one of the organizations supported by The New York Times Neediest Cases Fund. The society drew $2,120 from the fund so the Concepcions could pay some of their medical bills, and the health advocates helped them obtain the discount from the hospital.


Neither one knows what the next step will be, however, and the stress has been eating at them.


“How do we get out of this?” Mr. Concepcion asked. “There is no way out. Here I am trying to save to retire. They’re going to put me in the street.”


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DealBook: Michael Dell’s Empire in a Buyout Spotlight

The computer empire of Michael S. Dell spreads across a campus of low-slung buildings in Round Rock, Tex.

But his financial empire — estimated at $16 billion — occupies the 21st floor of a dark glass skyscraper on Fifth Avenue in Manhattan.

It is there that MSD Capital, started by Mr. Dell 15 years ago to manage his fortune, has quietly built a reputation as one of the smartest investors on Wall Street. By amassing a prodigious portfolio of stocks, companies, real estate and timberland, Mr. Dell has reduced his exposure to the volatile technology sector and branched out into businesses as diverse as dentistry and landscaping.

Now, Mr. Dell is on the verge of making one of the biggest investments of his life. The 47-year-old billionaire and his private equity backers are locked in talks to acquire Dell, the company he started with $1,000 as a teenager three decades ago, in a leveraged buyout worth more than $20 billion. MSD could play a role in the Dell takeover, according to people briefed on the deal.

The private equity firm Silver Lake has been in negotiations to join with Mr. Dell on a transaction, along with other potential partners like wealthy Asian investors or foreign funds. Mr. Dell would be expected to roll his nearly 16 percent ownership of the company into the buyout, a stake valued at about $3.5 billion. He could also contribute additional personal money as part of the buyout.

That money is managed by MSD, among the more prominent so-called family offices that are set up to handle the personal investments of the wealthy. Others with large family offices include Bill Gates, whose Microsoft wealth financed the firm Cascade Investment, and New York’s mayor, Michael R. Bloomberg, who set up his firm, Willett Advisors, in 2010 to manage his personal and philanthropic assets.

“Some of these family offices are among the world’s most sophisticated investors and have the capital and talent to compete with the largest private equity firms and hedge funds,” said John P. Rompon, managing partner of McNally Capital, which helps structure private equity deals for family offices.

A spokesman for MSD declined to comment for this article. The buyout talks could still fall apart.

In 1998, Mr. Dell, then just 33 years old — and his company’s stock worth three times what it is today — decided to diversify his wealth and set up MSD. He staked the firm with $400 million of his own money, effectively starting his own personal money-management business.

To head the operation, Mr. Dell hired Glenn R. Fuhrman, a managing director at Goldman Sachs, and John C. Phelan, a principal at ESL Investments, the hedge fund run by Edward S. Lampert. He knew both men from his previous dealings with Wall Street. Mr. Fuhrman led a group at Goldman that marketed specialized investments like private equity and real estate to wealthy families like the Dells. And Mr. Dell was an early investor in Mr. Lampert’s fund.

Mr. Fuhrman and Mr. Phelan still run MSD and preside over a staff of more than 100 overseeing Mr. Dell’s billions and the assets in his family foundation. MSD investments include a stock portfolio, with positions in the apparel company PVH, owner of the Calvin Klein and Tommy Hilfiger brands, and DineEquity, the parent of IHOP and Applebee’s.

Among its real estate holdings are the Four Seasons Resort Maui in Hawaii and a stake in the New York-based developer Related Companies.

MSD also has investments in several private businesses, including ValleyCrest, which bills itself as the country’s largest landscape design company, and DentalOne Partners, a collection of dental practices.

Perhaps MSD’s most prominent deal came in 2008, in the middle of the financial crisis, when it joined a consortium that acquired the assets of the collapsed mortgage lender IndyMac Bank from the federal government for about $13.9 billion and renamed it OneWest Bank.

The OneWest purchase has been wildly successful. Steven Mnuchin, a former Goldman executive who led the OneWest deal, has said that the bank is expected to consider an initial public offering this year. An I.P.O. would generate big profits for Mr. Dell and his co-investors, according to people briefed on the deal.

Another arm of MSD makes select investments in outside hedge funds. Mr. Dell invested in the first fund raised by Silver Lake, the technology-focused private equity firm that might now become his partner in taking Dell private.
MSD’s principals have already made tidy fortunes. In 2009, Mr. Fuhrman, 47, paid $26 million for the Park Avenue apartment of the former Lehman Brothers chief executive Richard S. Fuld. Mr. Phelan, 48, and his wife, Amy, a former Dallas Cowboys cheerleader, also live in a Park Avenue co-op and built a home in Aspen, Colo.

Both are influential players on the contemporary art scene, with ARTNews magazine last year naming each of them among the world’s top 200 collectors. MSD, too, has dabbled in the visual arts. In 2010, MSD bought an archive of vintage photos from Magnum, including portraits of Marilyn Monroe and Mahatma Gandhi, and has put the collection on display at the University of Texas, Mr. Dell’s alma mater.

Just as the investment firms Rockefeller & Company (the Rockefellers, diversifying their oil fortune) and Bessemer Trust (the Phippses, using the name of the steelmaking process that formed the basis of their wealth) started out as investment vehicles for a single family, MSD has recently shown signs of morphing into a traditional money management business with clients beside Mr. Dell.

Last year, for the fourth time, an MSD affiliate raised money from outside investors when it collected about $1 billion for a stock-focused hedge fund, MSD Torchlight Partners. A 2010 fund investing in distressed European assets also manages about $1 billion. The Dell family is the anchor investor in each of the funds, according to people briefed on the investments.

MSD has largely remained below the radar, though its name emerged a decade ago in the criminal trial of the technology banker Frank Quattrone on obstruction of justice charges. Prosecutors introduced an e-mail that Mr. Fuhrman sent to Mr. Quattrone during the peak of the dot-com boom in which he pleaded for a large allotment of a popular Internet initial public offering.

“We know this is a tough one, but we wanted to ask for a little help with our Corvis allocation,” Mr. Fuhrman wrote. “We are looking forward to making you our ‘go to’ banker.”

The e-mail, which was not illegal, was meant to show the quid pro quo deals that were believed to have been struck between Mr. Quattrone and corporate chieftains like Mr. Dell — the bankers would give executives hot I.P.O.’s and the executives, in exchange, would hold out the possibility of giving business to the bankers. (Mr. Quattrone’s conviction was reversed on appeal.)

The MSD team has also shown itself to be loyal to its patron in other ways.

On the MSD Web site, in the frequently asked questions section, the firm asks and answers queries like “how many employees do you have” and “what kind of investments do you make.”

In the last question on the list, MSD asks itself, “Do you use Dell computer equipment?” The answer: “Exclusively!”


This post has been revised to reflect the following correction:

Correction: January 18, 2013

An earlier version of this article misstated when an MSD affiliate raised money from outside investors for a hedge fund. It was last year, not earlier this year. The article also misstated which hedge fund and its focus. It was MSD Torchlight Partners, a stock-focused hedge fund, not MSD Energy Partners, an energy-focused hedge fund.

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