Casino And Sports Betting Companies Dumped After Virus Outbreak Postpones MLB Games

Casino And Sports Betting Companies Dumped After Virus Outbreak Postpones MLB Games

Tyler Durden

Mon, 07/27/2020 – 15:55

A reality check is playing out for daytraders who panic bought casino and sports betting stocks during the pandemic, betting on a V-shaped recovery, have come to find out on Monday that these stocks are quickly sinking on COVID-19 concerns

Shares of MGM Resorts are down 6.2%, Las Vegas Sands Corp -2.1%, Wynn Resorts Ltd -4.2%, and Boyd Gaming Corp -3.5%. 

MGM

LVS

WYNN

BYD

Sports betting companies were slammed lower after a COVID-19 outbreak led Major League Baseball to postpone two games.

Draftkings Inc plunged 7.5% on the news. Penn National Gaming Inc was down -7%, as the company attempts to unveil a sports betting app ahead of the NFL and college football season. 

DKNG

PENN

During the pandemic, there were no sports games, sports betting companies like DraftKings and Penn relied heavily on alternatives. DraftKings allowed users to bet on Russian table tennis and virtual video games, while Penn’s Barstool Sports founder Dave Portnoy pumped penny stocks. 

If more MLB games are postponed, and the reemergence of the virus worsens, this could be incredibly bad for Robinhood traders who went all-in on some of these stocks, hoping the economy would roar back to life. 

However, the economic rebound is reversing, and Robinhood daytraders, who instead of sports betting, panic bought stocks, went all-in on DraftKings. 

Last month, we noted DraftKings’ insiders dumped $596 million worth of the stock into Robinhood panic buying. 

And it gets worse, Robinhood folks also panic bought Portnoy’s PENN. 

Investors are selling casino and sports betting companies as many misread the shape of the recovery, hoping for a “V,” evidence is coming out now that it’s more of a dead cat bounce as the recovery reverses. 

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Fed Releases POMO Schedule For Next Two Weeks: Will Buy $9BN In Treasuries And MBS Daily

Fed Releases POMO Schedule For Next Two Weeks: Will Buy $9BN In Treasuries And MBS Daily

Tyler Durden

Mon, 07/27/2020 – 15:46

Now that the Fed’s release of POMO is more of a periodic affair than every Friday, moments ago the NY Fed published its latest POMO schedule for both Treasurys and MBS for the next two weeks, covering the period July 28 – August 12.

In line with the recent Fed disclosure that the central bank will purchase about $80 billion in Treasurys monthly, the latest schedule shows an average daily purchase of about $4.5 billion, or $40.2 billion spread over 9 days, identical to the previous two week POMO schedule. For MBS the average daily is nearly identical, at fractionally higher, at $4.7 billion daily, or $51BN spread over 11 days. In total, the Fed will continue to purchase roughly $9 billion in Treasurys and MBS almost every day for the next two weeks.

Here is the latest summary of Treasury POMOS. Of note: the biggest POMO will take place tomorrow and Friday, July 28 and 31, when the Fed will monetize $12.825BN and $8.825BN worth of US debt.

The Agency MBS can be found at the following link.

The visual summary of all TSY/MBS POMO since the start of QE Unlimited on March 13 is shown below. Since then, a total of $2.9 trillion in TSY and MBS have been purchased by the Fed in the open market.

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Ron Paul Fears ‘Fedcoin’: A New Scheme For Tyranny And Poverty

Ron Paul Fears ‘Fedcoin’: A New Scheme For Tyranny And Poverty

Tyler Durden

Mon, 07/27/2020 – 15:33

Authored by Ron Paul via The Ron Paul Institute for Peace & Prosperity,

If some Congress members get their way, the Federal Reserve may soon be able to track many of your purchases in real time and share that information with government agencies. This is just one of the problems with the proposed “digital dollar” or “fedcoin.”

Fedcoin was initially included in the first coronavirus spending bill. While the proposal was dropped from the final version of the bill, there is still great interest in fedcoin on Capitol Hill. Some progressives have embraced fedcoin as a way to provide Americans with a “universal basic income.”

Both the Senate Banking Committee and the House Financial Services Committee held hearings on fedcoin in June. This is the first step toward making fedcoin a reality.

  • Fedcoin would not be an actual coin. Instead, it would be a special account created and maintained for each American by the Federal Reserve. Each month, Fed employees could tap a few keys on a computer and — voila — each American would have dollars added to his Federal Reserve account. This is the 21st century equivalent of throwing money from helicopters.

  • Fedcoin could “crowd out” private cryptocurrencies. Also, it would limit the ability of private citizens to protect themselves from the Federal Reserve-caused decline in the dollar’s value.

  • Fedcoin would not magically increase the number of available goods and services. What it would do is drive up prices. The damage this would do to middle- and lower-income Americans would dwarf any benefit they receive from their monthly “gift” from the Fed. The rise in prices could lead to Congress regularly increasing fedcoin payments to Americans. These increases would cause prices to keep rising even more until we face hyperinflation and a dollar crisis. Of course, we are already on the path to an economic crisis thanks to the Fed. Fedcoin will hasten and worsen the crisis.

  • Fedcoin poses a great threat to privacy. The Federal Reserve could know when fedcoin is used, who is using it, and what they use it for. This information could be shared with government agencies, such as the FBI or IRS.

The government could use the ability to know how Americans are spending fedcoin to limit our ability to purchase goods and services disfavored by politicians and bureaucrats. Anyone who doubts this should recall the Obama administration’s Operation Choke Point. Operation Choke Point involved financial regulators “alerting” banks that dealing with certain businesses, such as gun stores, would put the banks at “reputational risk” and could subject them to greater regulation.

Is it so hard to believe that the ability to track purchases would be used in the future to “discourage” individuals from buying guns, fatty foods, or tobacco, or from being customers of corporations whose CEOs are not considered “woke” by the thought police? Fedcoin could also be used to “encourage” individuals to patronize “green” business, thus fulfilling Fed Chair Jerome Powell’s goal of involving the Fed in the fight against climate change.

Fedcoin will threaten private cryptocurrencies, increase inflation, and give government new powers over our financial transactions. Fedcoin will also speed up destruction of the fiat money system. Whatever gain fedcoin may bring to average Americans will come at terrible cost to liberty and prosperity.

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National Guardsman Contradicts Trump Administration’s Account of Use of Force Against Protesters

trump-bible

A National Guard officer will testify Tuesday at a congressional hearing that the June 1 clearing of protesters outside the White House was “an unnecessary escalation of the use of force” and “deeply disturbing to me, and to fellow National Guardsmen.”

“From my observation, those demonstrators—our fellow American citizens—were engaged in the peaceful expression of their First Amendment rights,” Adam DeMarco, a major in the D.C. National Guard, will tell the House Natural Resources Committee, according to his prepared remarks. “Yet they were subjected to an unprovoked escalation and excessive use of force.”

DeMarco’s testimony directly contradicts several of the Trump administration’s shifting explanations for what happened on June 1, when law enforcement violently dispersed a crowd of protesters in Lafayette Square, across the street from the White House. After police cleared the crowds, President Donald Trump conducted a photo shoot of himself holding a Bible outside St. John’s Church.

DeMarco and other National Guardsmen were deployed outside the White House on June 1, along with U.S. Park Police, Secret Service, and other federal law enforcement. A 7 p.m. curfew was in place in D.C. that evening.

DeMarco testifies that around 6 p.m., Attorney General William Barr and Gen. Mark Milley, the chairman of the Joint Chiefs of Staff, arrived.

“As the senior National Guard officer on the scene at the time, I gave General Milley a quick briefing on our mission and the current situation,” DeMarco writes. “General Milley told me to ensure that National Guard personnel remained calm, adding that we were there to respect the demonstrators’ First Amendment rights.” (Milley has since apologized for appearing in Lafayette Square. “I should not have been there,” he said. “My presence in that moment, and in that environment, created the perception of the military involved in domestic politics.”)

At around 6:20 p.m., DeMarco continues, verbal warnings were given to the crowd to leave. But from where he was standing, about 20 yards away from the line of protesters, the warnings “were barely audible and I saw no indication that the demonstrators were cognizant of the warnings to disperse.”

Law enforcement rushed the crowd at around 6:30 p.m. Videos showed law enforcement assaulting an Australian TV crew. Media and other observers also reported being tear gassed.

The Trump administration says that protesters were throwing items at law enforcement, which DeMarco testifies he did not see. Park Police also emphatically denied they fired tear gas, claiming that officers instead fired smoke canisters and pepper balls, the latter of which are also a chemical irritant. But DeMarco says that tear gas was indeed used.

“The Park Police liaison officer told me that the explosions were ‘stage smoke,’ and that no tear gas was being deployed against the demonstrators,” he writes. “But I could feel irritation in my eyes and nose, and based on my previous exposure to tear gas in my training at West Point and later in my Army training, I recognized that irritation as effects consistent with CS or ‘tear gas.’ And later that evening, I found spent tear gas cannisters on the street nearby.”

The Trump reelection campaign demanded media outlets issue a correction about any tear gas reporting. “Every news organization which reported the tear gas lie should immediately correct or retract its erroneous reporting,” Tim Murtaugh, campaign communications director, said in a statement.

As Reason‘s Elizabeth Nolan-Brown pointed out at the time, whether tear gas was used is rather incidental to the larger issue of the government attacking protesters so the president can do a silly photo op. But the distraction served its primary purpose for the White House and conservative media: to muddy the waters enough that average news consumers might shrug their shoulders and ignore the whole thing.

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New York Police Unions Partly Succeed in Stopping Release of Misconduct Records

NYPDgroup

New York City’s police and fire unions are fighting in court to block the release of their members’ disciplinary records. They’ve temporarily won one fight, but they may have already lost the war.

New York state has finally—after years of activism from police reformers demanding transparency—repealed Section 50-a, the rule that shielded police and firefighter personnel records from public disclosure laws. The statute had been applied so broadly that it was all but impossible to know what sort of discipline, if any, misbehaving officers faced.

Naturally, the police unions were not going to just step aside as the records were distributed. And so New York is now seeing what we saw in California last year when the Golden State ended its official regime of police record secrecy: lawsuits.

On July 14, a group of seven law enforcement and firefighter unions in New York City filed a federal lawsuit against Mayor Bill de Blasio and other city officials to attempt to stop a mass public release of disciplinary records, most specifically records that were “non-final, unsubstantiated, exonerated, or resulted in a finding of not guilty.” The lawsuit argues that even though Section 50-a has been repealed, releasing these past records violates the Due Process rights of the officers and collective bargaining agreements that assured they’d be kept confidential. (To read the lawsuit, Uniformed Fire Officers Association et al v. De Blasio et al, go here.)

On Wednesday evening, the unions won a temporary reprieve from Judge Katherine Polk Failla of the United States District Court, Southern District of New York, who, in an oral ruling, temporarily blocked the de Blasio administration from releasing these records until the case could be litigated.

But thousands of these records had already been passed along to the New York Civil Liberties Union (NYCLU) in response to a records request. Even though the NYCLU is not a party to this lawsuit, Failla nevertheless ordered that the NYCLU refrain from disclosing them to the public.

The NYCLU is not pleased, and it has filed a motion to get Failla’s gag order overruled, arguing that the court order is unconstitutional prior restraint. NYCLU Executive Director Donna Lieberman has noted that the NYCLU “obtained police misconduct data lawfully, and we vehemently disagree with the court’s unprecedented order to bar the publishing of these records….We’ll keep fighting to bring police misconduct into the light of day and make sure police are held accountable.”

Gagging the NYCLU didn’t stop some discipline records from getting released. The nonprofit media outfit ProPublica also asked the New York’s Civilian Complaint Review Board (CCRB) for disciplinary records and received data on thousands of police. They are under no orders from Failla not to publish them, so they’ve put together a database of active duty officers who have had at least one complaint against them substantiated. Turns out that around 4,000 of the city’s 36,000-person police force has had some sort of misconduct complaint deemed substantiated by the CCRB.

ProPublica‘s database is accessible here. As you read it, keep a couple of caveats in mind. First, the database contains only complaints that were evaluated by the CCRB, plus their findings. The CCRB investigates accusations of mistreatment of civilians by police officers, but not other types of potential police misconduct in the line of duty, such as perjury or corruption. Those other crimes and types of misconduct are investigated by the NYPD’s Internal Affairs Bureau and are not part of this database.

Second, the information in the database is very simple. It has the officers’ names, some very basic information about what they were accused of, and a contextless listing of the CCRB’s recommendations, including possible charges. But these are just recommendations. The CCRB lacks the authority to actually discipline cops. These findings are sent to the police commissioner for the final decision on what to actually do, though the CCRB does have attorneys who can prosecute officers at internal disciplinary trials. So when the database states that the CCRB recommended “charges,” this should not be taken to mean that the officer was definitively charged with misconduct and faced some sort of a trial.

All of which to say that all of this information in this database is just the tip of the iceberg. It still doesn’t give a clear sense of the extent that NYPD officers are held accountable for conduct that crosses the line.

It’s going to take at least months, and probably years, before New Yorkers can truly figure out what the NYPD does with their bad apples. And the police unions will be fighting every step of the way.

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New York Police Unions Partly Succeed in Stopping Release of Misconduct Records

NYPDgroup

New York City’s police and fire unions are fighting in court to block the release of their members’ disciplinary records. They’ve temporarily won one fight, but they may have already lost the war.

New York state has finally—after years of activism from police reformers demanding transparency—repealed Section 50-a, the rule that shielded police and firefighter personnel records from public disclosure laws. The statute had been applied so broadly that it was all but impossible to know what sort of discipline, if any, misbehaving officers faced.

Naturally, the police unions were not going to just step aside as the records were distributed. And so New York is now seeing what we saw in California last year when the Golden State ended its official regime of police record secrecy: lawsuits.

On July 14, a group of seven law enforcement and firefighter unions in New York City filed a federal lawsuit against Mayor Bill de Blasio and other city officials to attempt to stop a mass public release of disciplinary records, most specifically records that were “non-final, unsubstantiated, exonerated, or resulted in a finding of not guilty.” The lawsuit argues that even though Section 50-a has been repealed, releasing these past records violates the Due Process rights of the officers and collective bargaining agreements that assured they’d be kept confidential. (To read the lawsuit, Uniformed Fire Officers Association et al v. De Blasio et al, go here.)

On Wednesday evening, the unions won a temporary reprieve from Judge Katherine Polk Failla of the United States District Court, Southern District of New York, who, in an oral ruling, temporarily blocked the de Blasio administration from releasing these records until the case could be litigated.

But thousands of these records had already been passed along to the New York Civil Liberties Union (NYCLU) in response to a records request. Even though the NYCLU is not a party to this lawsuit, Failla nevertheless ordered that the NYCLU refrain from disclosing them to the public.

The NYCLU is not pleased, and it has filed a motion to get Failla’s gag order overruled, arguing that the court order is unconstitutional prior restraint. NYCLU Executive Director Donna Lieberman has noted that the NYCLU “obtained police misconduct data lawfully, and we vehemently disagree with the court’s unprecedented order to bar the publishing of these records….We’ll keep fighting to bring police misconduct into the light of day and make sure police are held accountable.”

Gagging the NYCLU didn’t stop some discipline records from getting released. The nonprofit media outfit ProPublica also asked the New York’s Civilian Complaint Review Board (CCRB) for disciplinary records and received data on thousands of police. They are under no orders from Failla not to publish them, so they’ve put together a database of active duty officers who have had at least one complaint against them substantiated. Turns out that around 4,000 of the city’s 36,000-person police force has had some sort of misconduct complaint deemed substantiated by the CCRB.

ProPublica‘s database is accessible here. As you read it, keep a couple of caveats in mind. First, the database contains only complaints that were evaluated by the CCRB, plus their findings. The CCRB investigates accusations of mistreatment of civilians by police officers, but not other types of potential police misconduct in the line of duty, such as perjury or corruption. Those other crimes and types of misconduct are investigated by the NYPD’s Internal Affairs Bureau and are not part of this database.

Second, the information in the database is very simple. It has the officers’ names, some very basic information about what they were accused of, and a contextless listing of the CCRB’s recommendations, including possible charges. But these are just recommendations. The CCRB lacks the authority to actually discipline cops. These findings are sent to the police commissioner for the final decision on what to actually do, though the CCRB does have attorneys who can prosecute officers at internal disciplinary trials. So when the database states that the CCRB recommended “charges,” this should not be taken to mean that the officer was definitively charged with misconduct and faced some sort of a trial.

All of which to say that all of this information in this database is just the tip of the iceberg. It still doesn’t give a clear sense of the extent that NYPD officers are held accountable for conduct that crosses the line.

It’s going to take at least months, and probably years, before New Yorkers can truly figure out what the NYPD does with their bad apples. And the police unions will be fighting every step of the way.

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Vaccine Execs Rake In $1 Billion In Stock Sales As Positive Headlines Boost Shares

Vaccine Execs Rake In $1 Billion In Stock Sales As Positive Headlines Boost Shares

Tyler Durden

Mon, 07/27/2020 – 15:13

With the race to find a vaccine for COVID-19 in full effect, biotech executives and other insiders from at least 11 companies have made hand over fist – raking in over $1 billion in stock sales after announcing positive developments, according to the New York Times.

In some cases, company insiders are profiting from regularly scheduled compensation or automatic stock trades. But in other situations, senior officials appear to be pouncing on opportunities to cash out while their stock prices are sky high. And some companies have awarded stock options to executives shortly before market-moving announcements about their vaccine progress. -NYT

In May, we noted that insiders at Moderna cashed out on some $30 million in options – while CEO Stephane Bancel has become a billionaire.

Moderna CEO Stéphane Bancel

The company’s market value is now nearly $30 billion thanks to a stream of positive press releases, while insiders have sold around $248 million altogether since January – most of it coming following an April announcement that the company had been selected to receive federal funding to support their efforts.

The Times highlights another case; South San Francisco-based Vaxart, which was selected by the US government to participate in a federal initiative to quickly produce COVID-19 treatments known as Operation Warp Speed.

Vaxart’s shares soared. Company insiders, who weeks earlier had received stock options worth a few million dollars, saw the value of those awards increase sixfold. And a hedge fund that partly controlled the company walked away with more than $200 million in instant profits.

Meanwhile, companies such as Vaxart are allegedly using their inclusion in Operation Warp Speed as marketing ploys.

For example, the headline on Vaxart’s news release declared: “Vaxart’s Covid-19 Vaccine Selected for the U.S. Government’s Operation Warp Speed.” But the reality is more complex.

Vaxart’s vaccine candidate was included in a trial on primates that a federal agency was organizing in conjunction with Operation Warp Speed. But Vaxart is not among the companies selected to receive significant financial support from Warp Speed to produce hundreds of millions of vaccine doses.

Michael R. Caputo, the US Department of Health and Human Services’ assistant secretary for public affairs said the agency “has entered into funding agreements with certain vaccine manufacturers, and we are negotiating with others,” but added “Neither is the case with Vaxart.”

“Vaxart’s vaccine candidate was selected to participate in preliminary U.S. government studies to determine potential areas for possible Operation Warp Speed partnership and support. At this time, those studies are ongoing, and no determinations have been made,” he added.

CEO Andrei Floroiu – who received stock options worth approximately $4.3 million in June (and worth $28 million weeks later) – defended his company, saying in a Friday statement “Vaxart abides by good corporate governance guidelines and policies and makes decisions in accordance with the best interests of the company and its shareholders,” adding “We believe that Vaxart’s Covid-19 vaccine is the most exciting one in O.W.S. because it is the only oral vaccine (a pill) in O.W.S.”

Andrei Floroiu, the chief executive of Vaxart, received stock options worth about $4.3 million in June. A month later, they were worth more than $28 million.Credit…Will Ragozzino/Patrick McMullan

While ‘fortunately timed’ stock sales are typically legal, they can create the appearance of malfeasance and profiteering from insider information.

It is inappropriate for drug company executives to cash in on a crisis,” said Ben Wakana, executive director of nonprofit advocacy group, Patients for Affordable Drugs. “Every day, Americans wake up and make sacrifices during this pandemic. Drug companies see this as a payday.”

Executives at a long list of companies have reaped seven- or eight-figure profits thanks to their work on coronavirus vaccines and treatments.

Shares of Regeneron, a biotech company in Tarrytown, N.Y., have climbed nearly 80 percent since early February, when it announced a collaboration with the Department of Health and Human Services to develop a Covid-19 treatment. Since then, the company’s top executives and board members have sold nearly $700 million in stock. The chief executive, Leonard Schleifer, sold $178 million of shares on a single day in May.

Alexandra Bowie, a spokeswoman for Regeneron, said most of those sales had been scheduled in advance through programs that automatically sell executives’ shares if the stock hits a certain price. –NYT

Meanwhile, executives and board members for Emergent BioSolutions, Quidel and Luminex have offloaded a combined $85 million in shares following positive announcements regarding vaccines, testing solutions or treatments according to the Times.

In April, Gaithersburg, MD-based Novavax issued a slew of stock awards to all employees when the stock was below $24 “in acknowledgment of the extraordinary work of our employees to implement a new vaccine program.” Four senior executives – including CEO Stanley Erck, received awards worth under $20 million at the time.

Now, with shares over $135, the four execs’ stock options are worth over $100 million on paper. As long as the company achieves a vaccine testing milestone, which they expect to hit soon, they’ll be able to use the options to buy discounted shares as early as 2021 regardless of whether or not they are successful in developing a vaccine.

Read the rest of the report here.

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University Of Minnesota Students See Reported Violent Crime Spike After Cutting Ties With Police Dept

University Of Minnesota Students See Reported Violent Crime Spike After Cutting Ties With Police Dept

Tyler Durden

Mon, 07/27/2020 – 14:55

Authored by Alyssa Rinelli via Campus Reform,

Students saw an increase in reported violence just weeks after the University of Minnesota announced that it would cut ties with the Minneapolis Police Department after the death of George Floyd.

In the weeks following the University of Minnesota’s announcement that it would cut ties with the Minneapolis Police Department, students received multiple systemwide public safety alert messages, telling them to be cautious on and near campus due to various reported violent crimes. This is a substantial increase in safety notifications for Minnesota students, given that prior to the announcement, only seven such announcements with only two emergencies were made in a six month period.

The university made its announcement on May 27. On June 16, students were alerted of both a robbery and an attempted robbery. On June 18, an alert warned students that an individual had been assaulted and four male suspects had stolen his car. The alert said that this incident “may be related to a second robbery.” Yet another robbery was reported on June 20, this time at gunpoint.  

On July 2, students received alerts about a robbery of a business by a female suspect during which “a gun was seen.”

On Thursday, students learned via the alert system that five males used a Ford SUV to knock a woman off her bike, in what was described as yet another “attempted robbery,” although the assailants reportedly left the scene without taking any property.

This is leaving many to wonder what the University of Minnesota is doing to keep students safe, especially considering that the Minneapolis Police Department responded to about half of the reported crimes listed on the UMN Police Department’s website since September.

“The University has its own police department, the University of Minnesota Police Department (UMPD), which continues to lead our day-to-day public safety efforts on our Twin Cities campus. Additionally, UMPD still collaborates with MPD on joint patrols and investigations that directly enhance the safety of our community and allow us to investigate and apprehend those who put our students, faculty, and staff at risk,” the university told Campus Reform.

Students, however, fear that the university is not taking their safety seriously. 

Nina Lind, a senior at the University of Minnesota, told Campus Reform that “I think that the [University of Minnesota] is more focused on the social issues brought up by students rather than our actual safety. I am genuinely concerned to come back to campus without the MPD being present.

Chase Christopherson, another student at the University of Minnesota, added, “It is disappointing that the leadership of the University of Minnesota caved into the mob and will thus provide less safety and services” adding that he “fear[s] that the University doesn’t care about our safety – only appeasing those who want nothing to do with law, order, and safety.”

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NJ Gym Owners Accuse Gov Of “Flexing His Little Tyrant Muscles” After Being Arrested For Contempt

NJ Gym Owners Accuse Gov Of “Flexing His Little Tyrant Muscles” After Being Arrested For Contempt

Tyler Durden

Mon, 07/27/2020 – 14:40

The owners of Atilis Gym, a gym in Bellmawr, NJ that was ordered by a New Jersey judge to close immediately, have been arrested on charges of contempt of court after refusing to comply.

Since it first defied the state and decided to reopen 2 months ago, the gym has become a local fixation, attracting protesters sympathetic with its cause. The report below, published earlier today, includes footage from some rallies that have been held at the gym.

Gym owners Ian Smith, 33, of Delanco Township, and Frank Trumbetti, 51, of Williamstown were charged with contempt of court, along with violating a disaster control act, according to the Camden County Prosecutor’s Office.

The owners of Atilis Gym in Bellmawr were arrested and released early Monday morning after continuing to operate their business despite a judge issuing a contempt order against them on Friday, according to Acting Camden County Prosecutor Jill S. Mayer.

Ian Smith, 33, of Delanco Township, and Frank Trumbetti, 51, of Williamstown, are charged with one count of fourth-degree Contempt, one count of Obstruction, and one count of Violation of a Disaster Control Act, both disorderly persons summons.

On July 24, the Honorable Judge Robert T. Lougy, issued a court order for Trumbetti and Smith to vacate the gym and cease operations.

From July 24 through July 27, a number of individuals were observed entered and using the gym, a direct violation of the court order.

Trumbetti and Smith were transported to the Bellmawr Police Department where they were charged and released.

All persons charged with crimes are presumed innocent until proven guilty in a court of law.

The gym owners have become a cause celebre in the movement to oppose lockdowns.

In other local news, dozens of New Jersey lifeguards have now tested positive for COVID-19, as public health officials worry about an outbreak focused around some of the state’s beaches. Inspired in part by this string of infections, states from Connecticut to Rhode Island have ordered beaches to close to out-of-state residents, according to ABC News.

More than two dozen lifeguards from two New Jersey beach towns have tested positive for the coronavirus after having been together socially, authorities said.

Officials said the lifeguards are from Harvey Cedars and Surf City, neighboring boroughs on Long Beach Island.

Mayor Jonathan Oldham of Harvey Cedars said island health officials alerted the borough to the cluster Thursday and the lifeguards were being quarantined until they are cleared by doctors. Long Beach Island’s health director said the guards were apparently together at two “social gatherings” earlier this month.

Harvey Cedars said Saturday that 17 lifeguards, all of whom had “attended a party in Surf City,” had tested positive for COVID-19. The island’s health director earlier said a dozen Surf City lifeguards had tested positive.

Harvey Cedars said on its website that it has 73 lifeguards and therefore “our beaches will remain fully staffed with all safety protocols in place.” Surf City said its beaches “will remain protected from 10 a.m. to 5 p.m. daily” but “adjustments may be made from day to day to ensure the safety of all patrons and guards.”

New Jersey officials earlier announced more than 500 new positive COVID-19 cases and an additional 11 deaths confirmed as associated with the virus, bringing the total number of deaths associated with the virus in the state to 13,867.

In a post on the gym’s Facebook page published Monday morning, Smith attacked NJ Gov Phil Murphy for “flexing his little tyrant muscles.”

Despite the life guard infections, Murphy has continued to allow all protest-related activities to continue without any restrictions, even joining the marchers in person on occasion.

Maybe they can hook the governor up with a membership when all this is said and done?

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RIP Arnold Trebach, Who Helped Make Opposition to the Drug War Respectable

Arnold-Trebach-C-SPAN-1993-cropped

Arnold Trebach, who died last week at the age of 92, started the Drug Policy Foundation in the heat of Ronald Reagan’s war on drugs. It was the same year that Joe Biden, a Democrat who is running for president this year as a criminal justice reformer, wrote the Anti-Drug Abuse Act of 1986, which prescribed new mandatory minimum sentences for drug offenses and created the notorious weight-based sentencing distinction that treated crack cocaine as if it were 100 times worse than cocaine powder.

It did not seem like an auspicious time to be urging a reconsideration of drug prohibition. Three years later, when President George H.W. Bush announced yet another escalation of the war on drugs while waving a bag of crack on national television, Biden, then a Delaware senator, delivered the Democratic response. “Quite frankly,” he said, “the president’s plan’s not tough enough, bold enough, or imaginative enough to meet the crisis at hand.” Calling drug use “the No. 1 threat to our national security,” Biden said “what we need is another D-Day, not another Vietnam.”

In this context, with Democrats outbidding Republicans in their zeal to deploy violence against people with politically incorrect pharmacological tastes, it took a certain kind of chutzpah—a good kind—to start an organization dedicated to the proposition that there might be a more tolerant approach. But Trebach, a middle-aged lawyer and professor of justice at American University, figured someone should be talking about downside of this bipartisan chemical crusade and suggesting an alternative he called “drug peace.”

Even before he started the Drug Policy Foundation, Trebach’s skeptical treatment of the war on drugs in the courses he taught prompted a telegram to the president of American University. “Close your doors immediately,” it said. “Do not continue to corrupt any more American youth.” The idea that questioning current policy was tantamount to corrupting “American youth” suggests the level of debate that was typical at the time.

“We must convince people that it is respectable, it is rational, it is decent, to oppose current drug laws,” Trebach told Reason in 1987, the year he published The Great Drug War. “The major thing I want to do is replace hate with love or intolerance with tolerance. The drug law does not deal with some of the major problems connected with drug abuse—crime and corruption. The law only makes the corruption worse, makes the crime worse, and does not help the simple addict. I know of no addict who has been helped by being treated as the enemy.”

In The Great Drug War, Trebach highlighted the cruel, perverse, and invasive consequences of using force to prevent people from altering their consciousness in ways politicians did not like. The fallout included widespread drug testing, humiliating border searches, civil asset forfeiture, imprisonment of nonviolent drug offenders, police corruption, undertreatment of pain, misinformation about the relative hazards of drugs, coercive “rehabilitation” programs like Straight Inc., vain and destructive efforts to stamp out drug production in other countries, and a running battle between domestic marijuana growers and cops determined to eradicate their crops and livelihoods.

“We are losing the great drug war because our leaders…have declared all users of illicit drugs to be ‘the enemy,'” Trebach wrote. “Thus, they refuse to distinguish between drug use and drug abuse, between responsible drug use and compulsive addictive use.” They have “therefore declared at least 50 million Americans to be enemies of the state.”

The book’s subtitle originally touted Radical Proposals That Could Make America Safe Again, although Trebach stopped short of recommending the legalization of all drugs. In the 2005 edition, which did call for a broad dismantling of prohibition, the subtitle was changed to Rational Proposals to Turn the Tide, a revision that may have been motivated by marketing considerations but also reflected a change in public opinion that Trebach helped bring about.

The percentage of Americans who favored legalizing marijuana had by that point begun an upward trend that would lead to majority support within a decade. Meanwhile, politicians were beginning to question the mandatory minimum binge that politicians like Biden had promoted. Two years later, Biden himself would introduce a bill aimed at eliminating the unjust and irrational distinction between the smoked and snorted forms of cocaine, which had led to strikingly unequal treatment of black drug offenders.

Trebach’s D.C.-based organization—which in 2000 merged with Ethan Nadelmann’s Lindesmith Center in New York, an amalgam now known as the Drug Policy Alliance—played a seminal role in encouraging that evolution in thinking by bringing together antiprohibitionists from across the political spectrum. As my former Reason colleague Virginia Postrel noted in 1989, the Drug Policy Foundation’s conferences offered fresh perspectives on drug use and addiction that went beyond “medicalization,” which would treat consumers of currently illegal substances as patients rather than criminals. These were gatherings where libertarians influenced by Thomas Szasz and Milton Friedman mingled with public health specialists, left-leaning critics of the carceral state, and conservatives troubled by the myriad ways in which prohibition undermines law and order.

Writing for Reason in 1988, by which time he had turned fully against prohibition, Trebach argued that even the “worst-case scenario” of substantially increased addiction under legalization would be better than the disastrous consequences of the war on drugs. “Everything we know about the dynamics of drug use suggests that the real scenario will be even better,” he wrote. “If we legalize the currently illegal drugs, teach temperance and moderation regarding all drugs, and treat addicts and cancer patients alike with compassion and sound health care, the whole topic will be reduced to a mid-level and, hopefully, boring issue of national health policy.”

We have not yet reached the point where drug policy is boring. But discussion of the subject is notably calmer, more compassionate, and less reflexively punitive than it was in the 1980s, when Trebach dared to question the aggressive, indiscriminate approach favored by Democrats and Republicans alike. The ongoing collapse of marijuana prohibition—combined with the shift embodied by Biden, who now says he wants to abolish the mandatory minimums and death penalties he once championed—suggests that Americans are thinking about drugs a little more rationally than they did a few decades ago. That’s no small achievement, and Trebach’s advocacy, as he hoped, helped make opposition to the war on drugs respectable.

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