Billionaires have had a pretty good pandemic. There are more of them than there were a year ago, even as the crisis has exacerbated inequality. But scrutiny has followed these ballooning fortunes. Policymakers are debating new taxes on corporations and wealthy individuals. Even their philanthropy has come under increasing criticism as an exercise of power as much as generosity.
One arena in which the billionaires can still win plaudits as civic-minded saviors is buying the metropolitan daily newspaper.
The local business leader might not have seemed like such a salvation a quarter century ago, before Craigslist, Google and Facebook began divvying up newspapers’ fat ad revenues. Generally, the neighborhood billionaires are considered worth a careful look by the paper’s investigative unit. But a lot of papers don’t even have an investigative unit anymore, and the priority is survival.
This media landscape nudged newspaper ownership from the vanity column toward the philanthropy side of the ledger. Paying for a few more reporters and to fix the coffee machine can earn you acclaim for a lot less effort than, say, spending two decades building the Bill and Melinda Gates Foundation.
$680 million bid by Hansjörg Wyss, a little-known Swiss billionaire, and Stewart W. Bainum Jr., a Maryland hotel magnate, for Tribune Publishing and its roster of storied broadsheets and tabloids like The Chicago Tribune, The Daily News and The Baltimore Sun.
Should Mr. Wyss and Mr. Bainum succeed in snatching Tribune away from Alden Global Capital, whose bid for the company had already won the backing of Tribune’s board, the purchase will represent the latest example of a more than decade-long quest by some of America’s ultrawealthy to prop up a crumbling pillar of democracy.
If there was a signal year in this development, it came in 2013. That is when Amazon founder Jeff Bezos bought The Washington Post and the Red Sox’ owner, John Henry, bought The Boston Globe.
“I invested in The Globe because I believe deeply in the future of this great community, and The Globe should play a vital role in determining that future,” Mr. Henry wrote at the time.
led a revival of the paper to its former glory. And after a somewhat rockier start, experts said that Mr. Henry and his wife, Linda Pizzuti Henry, the chief executive officer of Boston Globe Media Partners, have gone a long way toward restoring that paper as well.
Norman Pearlstine, who served as executive editor for two years after Dr. Soon-Shiong’s purchase and still serves as a senior adviser. “I don’t think that’s open to debate or dispute.”
From Utah to Minnesota and from Long Island to the Berkshires, local grandees have decided that a newspaper is an essential part of the civic fabric. Their track records as owners are somewhat mixed, but mixed in this case is better than the alternative.
Researchers at the University of North Carolina at Chapel Hill released a report last year showing that in the previous 15 years, more than a quarter of American newspapers disappeared, leaving behind what they called “news deserts.” The 2020 report was an update of a similar one from 2018, but just in those two years another 300 newspapers died, taking 6,000 journalism jobs with them.
“I don’t think anybody in the news business even has rose colored glasses anymore,” said Tom Rosenstiel, executive director of the American Press Institute, a nonprofit journalism advocacy group. “They took them off a few years ago, and they don’t know where they are.”
“The advantage of a local owner who cares about the community is that they in theory can give you runway and also say, ‘Operate at break-even on a cash-flow basis and you’re good,’” said Mr. Rosenstiel.
won a prestigious Polk Award for its coverage of the killing of George Floyd and the aftermath.
“The communities that have papers owned by very wealthy people in general have fared much better because they stayed the course with large newsrooms,” said Ken Doctor, on hiatus as a media industry analyst to work as C.E.O. and founder of Lookout Local, which is trying to revive the local news business in smaller markets, starting in Santa Cruz, Calif. Hedge funds, by contrast, have expected as much as 20 percent of revenue a year from their properties, which can often be achieved only by stripping papers of reporters and editors for short-term gain.
Alden has made deep cuts at many of its MediaNews Group publications, including The Denver Post and The San Jose Mercury News. Alden argues that it is rescuing papers that might otherwise have gone out of business in the past two decades.
And a billionaire buyer is far from a panacea for the industry’s ills. “It’s not just, go find yourself a rich guy. It’s the right rich person. There are lots of people with lots of money. A lot of them shouldn’t run newspaper companies,” said Ann Marie Lipinski, curator of the Nieman Foundation for Journalism at Harvard and the former editor of The Chicago Tribune. “Sam Zell is Exhibit A. So be careful who you ask.”
beaten a retreat from the industry. And there have even been reports that Dr. Soon-Shiong has explored a sale of The Los Angeles Times (which he has denied).
“The great fear of every billionaire is that by owning a newspaper they will become a millionaire,” said Mr. Rosenstiel.
Elizabeth Green, co-founder and chief executive at Chalkbeat, a nonprofit education news organization with 30 reporters in eight cities around the country, said that rescuing a dozen metro dailies that are “obviously shells of their former selves” was never going to be enough to turn around the local news business.
“Even these attempts are still preserving institutions that were always flawed and not leaning into the new information economy and how we all consume and learn and pay for things,” said Ms. Green, who also co-founded the American Journalism Project, which is working to create a network of nonprofit outlets.
Ms. Green is not alone in her belief that the future of American journalism lies in new forms of journalism, often as nonprofits. The American Journalism Project received funding from the Houston philanthropists Laura and John Arnold, the Craigslist founder Craig Newmark and Laurene Powell Jobs’s Emerson Collective, which also bought The Atlantic. Herbert and Marion Sandler, who built one of the country’s largest savings and loans, gave money to start ProPublica.
“We’re seeing a lot of growth of relatively small nonprofits that are now part of what I would call the philanthropic journalistic complex,” said Mr. Doctor. “The question really isn’t corporate structure, nonprofit or profit, the question is money and time.”
operating as a nonprofit.
After the cable television entrepreneur H.F. (Gerry) Lenfest bought The Philadelphia Inquirer, he set up a hybrid structure. The paper is run as a for-profit, public benefit corporation, but it belongs to a nonprofit called the Lenfest Institute. The complex structure is meant to maintain editorial independence and maximum flexibility to run as a business while also encouraging philanthropic support.
Of the $7 million that Lenfest gave to supplement The Inquirer’s revenue from subscribers and advertisers in 2020, only $2 million of it came from the institute, while the remaining $5 million came from a broad array of national, local, institutional and independent donors, said Jim Friedlich, executive director and chief executive of Lenfest.
“I think philosophically, we’ve long accepted that we have no museums or opera houses without philanthropic support,” said Ms. Lipinski. “I think journalism deserves the same consideration.”
Mr. Bainum has said he plans to establish a nonprofit group that would buy The Sun and two other Tribune-owned Maryland newspapers if he and Mr. Wyss succeed in their bid.
“These buyers range across the political spectrum, and on the surface have little in common except their wealth,” said Mr. Friedlich. “Each seems to feel that American democracy is sailing through choppy waters, and they’ve decided to buy a newspaper instead of a yacht.”
The prospect of a fourth wave of the coronavirus, with new cases climbing sharply in the Upper Midwest, has reignited a debate among vaccine experts over how long to wait between the first and second doses. Extending that period would swiftly increase the number of people with the partial protection of a single shot, but some experts fear it could also give rise to dangerous new variants.
In the United States, two-dose vaccines are spaced three to four weeks apart, matching what was tested in clinical trials. But in Britain, health authorities have delayed doses by up to 12 weeks in order to reach more people more quickly. And in Canada, which has precious few vaccines to go around, a government advisory committee recommended on Wednesday that second doses be delayed even longer, up to four months.
Some health experts think the United States should follow suit. Dr. Ezekiel J. Emanuel, a co-director of the Healthcare Transformation Institute at the University of Pennsylvania, has proposed that for the next few weeks, all U.S. vaccines should go to people receiving their first dose.
“That should be enough to quell the fourth surge, especially in places like Michigan, like Minnesota,” he said in an interview. Dr. Emanuel and his colleagues published the proposal in an op-ed on Thursday in USA Today.
10 days after the first dose, researchers could see that the volunteers were getting sick less often than those who got the placebo.
In the same month, Britain experienced a surge of cases caused by a new, highly transmissible variant called B.1.1.7. Once the British government authorized two vaccines — from Pfizer-BioNTech and AstraZeneca — it decided to fight the variant by delaying the second doses of both formulations by 12 weeks.
said on Jan. 31 on NBC’s “Meet the Press.”
But the government stayed the course, arguing that it would be unwise to veer off into the unknown in the middle of a pandemic. Although the clinical trials did show some early protection from the first dose, no one knew how well that partial protection would last.
“When you’re talking about doing something that may have real harm, you need empirical data to back that,” said Dr. Céline R. Gounder, an infectious-disease specialist at Bellevue Hospital Center and a member of Mr. Biden’s coronavirus advisory board. “I don’t think you can logic your way out of this.”
But in recent weeks, proponents of delaying doses have been able to point to mounting evidence suggesting that a first dose can provide potent protection that lasts for a number of weeks.
The Centers for Disease Control and Prevention reported that two weeks after a single dose of either the Moderna or the Pfizer-BioNTech vaccine, a person’s risk of coronavirus infection dropped by 80 percent. And researchers in Britain have found that first-dose protection is persistent for at least 12 weeks.
Dr. Emanuel argued that Britain’s campaign to get first doses into more people had played a role in the 95 percent drop in cases since their peak in January. “It’s been pretty stunning,” Dr. Emanuel said.
studies that show that a single dose of Moderna or Pfizer-BioNTech does not work as well against certain variants, such as B.1.351, which was first found in South Africa.
“Relying on one dose of Moderna or Pfizer to stop variants like B.1.351 is like using a BB gun to stop a charging rhino,” said John P. Moore, a virologist at Weill Cornell Medicine.
Dr. Moore said he also worried that delaying doses could promote the spread of new variants that can better resist vaccines. As coronaviruses replicate inside the bodies of some vaccinated people, they may acquire mutations that allow them to evade the antibodies generated by the vaccine.
But Dr. Cobey, who studies the evolution of viruses, said she wasn’t worried about delayed doses breeding more variants. “I would put my money on it having the opposite effect,” she said.
Last week, she and her colleagues published a commentary in Nature Reviews Immunology in defense of delaying doses. Getting more people vaccinated — even with moderately less protection — could translate into a bigger brake on the spread of the virus in a community than if fewer people had stronger protection, they said. And that decline wouldn’t just mean more lives were saved. Variants would also have a lower chance of emerging and spreading.
“There are fewer infected people in which variants can arise,” she said.
Dr. Adam S. Lauring, a virologist at the University of Michigan who was not involved in the commentary, said he felt that Dr. Cobey and her colleagues had made a compelling case. “The arguments in that piece really resonate with me,” he said.
Although it seems unlikely that the United States will shift course, its neighbor to the north has embraced a delayed strategy to cope with a booming pandemic and a short supply of vaccines.
Dr. Catherine Hankins, a public health specialist at McGill University in Montreal and a member of Canada’s Covid-19 Immunity Task Force, endorsed that decision, based on the emerging evidence about single doses. And she said she thought that other countries facing even worse shortfalls should consider it as well.
“I will be advocating at the global level that countries take a close look at Canada’s strategy and think seriously about it,” Dr. Haskins said.
As Covid-19 vaccinations have picked up and more businesses reopen across the country, Easter weekend saw a resurgence of tourist activity in some cities, perhaps indicating a turning point for the struggling tourism industry.
Chip Rogers, the president and chief operating officer for the American Hotel & Lodging Association, the trade organization for the hospitality industry, said that before last weekend, recovery had been “very regionalized,” with places like Florida and Texas doing well and “cities that thrive on large meetings and conventions like a Chicago, Orlando, Las Vegas” struggling to recover.
“You’re seeing really good pickup over the weekend dates, which have now extended. Traditionally they’re Friday to Sunday, now it’s Thursday to Monday,” he said, referring to the increase in leisure travel. But the lack ofbusiness travel means weekday bookings continue to lag. Still, he added, there’s reason for “cautious optimism.”
But travelers, even those who are fully vaccinated, should practice caution while visiting some states, health experts warn. Case numbers are going up in some popular destinations, like Florida, which saw a spike as revelers flocked there during spring break. The Centers for Disease Control and Prevention still recommends that people continue to wear masks, social distance and frequently wash their hands, even though some local governments have relaxed or lifted these rules.
Mila Miami, a restaurant in Miami Beach, many have traveled from out of state for extended stays — particularly from places like Los Angeles, New York and Chicago — which he said “has enabled the business to pick up customers that we wouldn’t have.”
This influx proved problematic over spring break, when police officers in riot gear used pepper balls to enforce an emergency curfew and disperse revelers ignoring social distancing and mask regulations.
During the weekend of March 28 to April 3, Miami “saw its highest occupancy level since the start of the pandemic, with most hotels reporting upward of 75 percent occupancy levels,” said Suzie Sponder, a spokeswoman for the Greater Miami Convention & Visitors Bureau. That’s only a 6.6 percent drop from the same weekend in 2019.
Ms. Sponder added that the average room rate for the weekend was $282.29, up 25 percent from 2019. And Mr. Rogers, of the American Hotel & Lodging Association, said that revenue, which is still down across the board, is the best indicator of the industry’s recovery, noting that Miami’s strong numbers are the exception rather than the rule.
In the tourism industry, “you still have a lot of folks that are out of work,” he said, “because it’s those large, city center urban hotels that employ the most people, because they have those extensive food and beverage operations that are not working right now. That’s where most job loss is occurring.”
Circa Resort & Casino. “It’s like trying to book a dinner reservation on New Year’s Eve. It’s not something you do the day before.” Spots at the pools at his establishments, which include two other hotels, are booked a month in advance because of reduced capacity limits and social distancing, which he said shows that there is demand for leisure travel. Hotels and other venues in the city are limited to 50 percent capacity.
Though the weekend of Easter is, historically, the second slowest weekend in the city, this year was different because of March Madness, the annual N.C.A.A. basketball tournaments. “Everything was packed to the restricted capacity level,” he said. “On Saturday, all of our venues were filled by 10 a.m. because of Final Four. I think that was the case throughout all of Las Vegas.”
Mr. Stevens said that since the Super Bowl, in February, there have been indications that the tourism industry in Vegas is recovering, adding that his three hotels have been sold out every weekend since. “I’ve never seen booking at the rate of what we’ve seen in the past three months or so. This is the strongest booking that I’ve ever experienced,” he said.
But there continues to be a dip during weekdays because of the lack of conferences or conventions. “What we’re seeing is enormous pent-up demand for leisure travel that while it’s going to take place throughout the entire summer, does not necessarily mean that business travel will follow suit,” he said.
NewOrleans.com planning a trip in the next three months. Ms. Schulz notes that she is “optimistic about the fourth quarter of 2021 with a convention and festival schedule.”
Though leisure travel over the summer is expected to keep the industry afloat, Mr. Rogers said business travel will need to pick back up in order to restore the industry to 2019 levels.
“While we’re optimistic, what we’re fearful of and concerned about is, what happens post-Labor Day when all of this leisure travel has passed?” he said. Business travel, he said, “is absolutely necessary if we’re going to survive.”
As the government prepared on Thursday to start taking applications for a $16 billion relief fund for music clubs, theaters and other live event businesses, thousands of desperate applicants waited eagerly to submit their paperwork right at noon, when the system was scheduled to open.
And then they waited. And waited. Nearly four hours later, the system was still not working at all, sending applicants into spasms of anxiety.
“This is an absolute disaster,” Eric Sosa, the owner of C’mon Everybody, a club in Brooklyn, tweeted at the agency. In social media forums and Zoom calls, frustrated applicants banded together to vent and share their anger.
The Small Business Administration, which runs the initiative, the Shuttered Venue Operators Grant program, attributed the problems to “a technical issue” that it said it was working to address.
the same thing happened again, weeks later, when a new round of funding became available.
Applicants for the grant program were incredulous that the agency was not better prepared — especially because the funds are to be distributed on a first-come, first-served basis. Those who get their applications in early have the best chance of getting aid before the money runs out.
“It pits venues against each other because we’re all mad-dashing for this,” Mr. Sosa said in an interview. “And it shouldn’t be that way. We’re all a community.”
For businesses like Crowbar, a music club in Tampa, Fla., getting a grant is a matter of survival. Tom DeGeorge, Crowbar’s primary owner, took out more than $200,000 in personal loans to keep the business afloat after it shut down last year, including one using its liquor license as collateral.
More than a year later, the club has reopened with a smattering of events at reduced capacities, but the business still operates in the red, Mr. DeGeorge said in an interview.
months of lobbying by an ad hoc coalition of music venues and other groups that warned of the loss of an entire sector of the arts economy.
For music venues in particular, the last year has been a scramble to remain afloat, with the proprietors of local clubs running crowdfunding campaigns, selling T-shirts and racking their brains for any creative way to raise funds. For the holidays, the Subterranean club in Chicago, for example, agreed to place the names of patrons on its marquee for donations of $250 or more.
“It’s been the busiest year,” Robert Gomez, the primary owner of Subterranean, said in an interview. “But it’s all been about, ‘Where am I going to get funding from?’”
sent out an alert warning of “serious concerns” with the program’s waste and fraud controls. The Small Business Administration’s current audit plan “exposes billions of dollars to potential misuse of funds,” the inspector general wrote in a report.
Successful applicants will receive a grant equal to 45 percent of their gross earned revenue from 2019, up to $10 million. Those who lost 90 percent of their revenue (compared to the prior year) after the coronavirus pandemic took hold will have a 14-day priority window for receiving the money, followed by another 14-day period for those who lost 70 percent or more. If any funds remain after that, they will then go to applicants who had a 25 percent sales loss in at least one quarter of 2020. Venues owned by large corporations, like Live Nation or AEG, are not eligible.
The application process is extensive, with detailed questions about venues’ budgets, staff and equipment.
“They want to make sure you’re not just setting up a piano in the corner of an Italian restaurant and calling yourself a music venue,” said Blayne Tucker, a lawyer for several music spaces in Texas.
many dry months before touring and live events return at anything like prepandemic levels.
The grant program also offers help for Broadway theaters, performing arts centers and even zoos, which share many of the same economic struggles.
The Pablo Center at the Confluence, in Eau Claire, Wis., for example, was able to raise about $1 million from donations and grants during the pandemic, yet is still $1.2 million short on its annual fixed operating expenses, said Jason Jon Anderson, its executive director.
“By the time we open again, October 2021 at the earliest, we will have been shuttered longer than we had been open,” he added. (The center opened in 2018, at a cost of $60 million.)
The thousands of small clubs that dot the national concert map lack access to major donors and, in many cases, have been surviving on fumes for months.
Stephen Chilton, the owner of the 300-capacity Rebel Lounge in Phoenix, said he had taken out “a few hundred thousand” in loans to keep the club afloat. In October, it reopened with a pop-up coffee shop inside, and the club hosts some events, like trivia contests and open mic shows.
“We’re losing a lot less than we were losing when we were completely closed,” Mr. Chilton said, “but it’s not making up for the lost revenue from doing events.”
The Rebel Lounge hopes that a grant will help it survive until it can bring back a full complement of concerts. And if its application is not accepted?
José Andrés, the Spanish-born chef and restaurateur known for organizing epic feeding initiatives when disaster strikes, was late in the game to establish a footprint in New York, but he’ll make up for it later this year.
ThinkFoodGroup, his umbrella company, will handle all the food and beverage at a new Ritz-Carlton hotel under construction and scheduled to open in NoMad this fall, at 1185 Broadway (28th Street). In 2019, Mr. Andrés’s group opened Mercado Little Spain, with a market, food hall and restaurants in the Hudson Yards development; it remains one of the few dining locations that is still functioning in the complex, several of the others having closed because of the pandemic.
His new restaurants at the Ritz-Carlton will be branches of restaurants he runs in other cities. Zaytinya is first, and will open in the fall. Its Washington, D.C., location has been serving small plates of Turkish, Greek and Lebanese food since 2002.
The Bazaar by José Andrés will follow a few months later. This is a lavish yet informal shape-shifting restaurant that’s tailored to particular locations: In Miami Beach, its dishes reflect Latin American and Caribbean influences; in Las Vegas, it’s focused on meat. The concept for New York has yet to be announced. ThinkFoodGroup will also run a rooftop bar and lounge, a lobby lounge, the banqueting functions and room service for the Ritz-Carlton.
Rafael Viñoly is designing the hotel, Rockwell Group is designing Zaytinya and Lázaro Rosa-Violán will do Bazaar.
Before the Ritz-Carlton opening in New York, ThinkFoodGroup is expanding with a cluster of places in Chicago, mostly in the Bank of America office tower. First up this summer will be Joe by the River, an all-day cafe, then Bazaar Meat, since a good steak is as appropriate for Chicago as it is for Las Vegas. Bar Mar for cocktails will follow. Jaleo, Mr. Andrés’s Spanish restaurant, which has four other locations around the country, will also open in Chicago’s River North district.
Erick Williams, the executive chef and owner of Virtue, a Southern restaurant in Chicago, said his staff of 22 employees is about half the size it was before the pandemic. “People aren’t even showing up for interviews these days,” he said.
If he can’t hire more help before business increases with the growth of outdoor dining, Mr. Williams said, “all of a sudden, you got to pay more overtime, and you’re running the risk of burning out your staff.”
The tight job market has helped hasten changes that restaurant workers pushed for during the shutdowns, including higher pay and better working conditions. Ms. Button has raised wages in accordance with recommendations made by One Fair Wage, an advocacy group for service workers, and is paying $150 bonuses to employees who refer new hires who stay on the job for more than 90 days.
The starting wage for kitchen employees at Mr. Acheson’s Atlanta restaurants is $14 to $15 per hour, he said, up from $12 before the pandemic. “People will walk down the street for a buck more — and they should,” he said.
Mike Traud, the program director of the Department of Food and Hospitality Management at Drexel University, in Philadelphia, said intense competition for talent makes this an opportune time for people to break into the restaurant business. He said this is particularly true in the Northeast, where restaurants on the coast are hiring for the tourism season.
“You have more leverage,” he said, “and there are more opportunities to get into upper-level kitchens.”
Many people, though, may be reluctant to take up or return to restaurant work, given the health risks that some studies have linked to serving customers, particularly indoors. Many restaurateurs are also concerned that resuming indoor dining too quickly could cause another spike in Covid infections. (This week, the Aspen Institute’s Food and Society Program released a set of safety guidelines it developed, in partnership with other industry groups, for diners and restaurant employees to continue following.)
Roughly 17.3 percent of all office space in Manhattan is available for lease, the highest proportion in at least three decades. Asking rents on the island have dropped to just over $74 a square foot, from nearly $82 at the beginning of 2020, according to a recent report by the real estate services company Newmark. Elsewhere, asking rents have largely stayed flat from a year ago, including in Boston and Houston, but have climbed slightly in Chicago.
The Japanese clothing brand Uniqlo, whose United States headquarters are in Manhattan’s SoHo neighborhood, recently relocated to another office building nearby, an open layout with tables designed for its work force of 130 people who will come into the office only a few days a week. Many of its office workers will keep working remotely after the pandemic, while some employees, like those in the marketing department, will hold meetings occasionally in SoHo.
“As a leader, it has been challenging because meeting people face-to-face is so important,” said Daisuke Tsukagoshi, the chief executive of Uniqlo USA. “However, since we are a Japanese company with global reach, the need for remote collaboration among many centers has always been part of our culture.”
Today in Business
The stock prices of the big landlords, which are often structured as real estate investment trusts that pass almost all of their profit to investors, trade well below their previous highs, even as the wider stock market and some companies in other industries like airlines and hotels that were hit hard by the pandemic have hit new highs. Shares of Boston Properties, one of the largest office landlords, are down 29 percent from the prepandemic high. SL Green, a major New York landlord, is 26 percent lower.
Fitch Ratings estimated that office landlords’ profits would fall 15 percent if companies allowed workers to be at home just one and a half days a week on average. Three days at home could slash income by 30 percent.
Senior executives at property companies claim not to be worried. They argue that working from home will quickly fade once most of the country is vaccinated. Their reasons to think this? They say many corporate executives have told them that it is hard to effectively get workers to collaborate or train young professionals when they are not together.
The 2017 film “Bitter Harvest” would not, by many definitions, be considered a success.
“It’s a bad sign when even the prayers in this movie are crappy,” observed one reviewer, who contributed to the film’s 15 percent critic rating on Rotten Tomatoes.
It pulled in less than $600,000 in the United States. But that did not mean it did not still have moneymaking potential abroad. All investors needed to do was help buy the rights to distribute it and a number of other films in Latin America, Africa and New Zealand. Major distribution deals with HBO and Netflix were on the cusp of being formalized, they were told. Once those fell into place, the investors would get returns of at least 35 percent.
That is the essence of what the Securities and Exchange Commission and federal prosecutors are calling a Ponzi scheme run by Zachary J. Horwitz, a not particularly famous actor with a rather extravagant home. Mr. Horwitz, who went by the stage name Zach Avery, was arrested on Tuesday on wire fraud charges. He is accused of defrauding investors of at least $227 million and fabricating his company’s business relationship with HBO and Netflix.
“We allege that Horwitz promised extremely high returns and made them seem plausible by invoking the names of two well-known entertainment companies and fabricating documents,” Michele Wein Layne, director of the S.E.C.’s Los Angeles regional office, said in a news release on Tuesday.
most recent film, the horror movie “The Devil Below” (Rotten Tomatoes critic score: 0 percent). Mr. Horwitz did not star in any of the 50 or so films he promised could make investors millions, according to Thom Mrozek, a spokesman for the U.S. Attorney’s Office in Los Angeles.
Mr. Horwitz was in jail on Wednesday, Mr. Mrozek said. Attempts to reach other employees of One in a Million Productions, whose website features the tag line “When Odds Are One in a Million. Be That One,” were unsuccessful. (Later Wednesday afternoon, the site had been taken down.)
Mr. Horwitz’s lawyer, Anthony Pacheco, did not respond to a request for comment.
The Ponzi scheme began to unravel when an investor wanted money refunded in 2019 and could not get it, Mr. Mrozek said.
For several years, 1inMM — as the company styles its name — found ways to pay investors, according to the S.E.C. Court documents do not list all of the films investors thought they had helped buy rights to, but the complaint features an image from 1inMM’s “library”; the 1989 Jean-Claude Van Damme movie “The Kickboxer” and the 2013 romantic comedy “The Spectacular Now” are included.
The way that money can be made in the movie distribution world is to say, “I’ll give you $100,000 for Latin America rights,” for example, Mr. Mrozek said, adding, “I go to HBO or whomever and say, ‘Give me $200,000 to show the movie.’”
according to the S.E.C.
Since December 2019, 1inMM has defaulted on more than 160 payments, according to court documents. One investor in Chicago, who was owed more than $160 million in principal and $59 million in profits, wanted his returns and could not get them, Mr. Mrozek said. That investor contacted the authorities.
Over the course of the pandemic, some of the most dangerous activities were those many Americans dearly missed: scarfing up nachos, canoodling with a date or yelling sports scores at a group of friends at a crowded, sticky bar inside a restaurant.
Now, as more states loosen restrictions on indoor dining and expand access to vaccines, restaurant employees — who have morphed from cheerful facilitators of everyone’s fun to embattled frontline workers — are scrambling to protect themselves against the new slosh of business.
“It’s been really stressful,” said Julia Piscioniere, a server at Butcher & Bee in Charleston. “People are OK with masks, but it is not like it was before. I think people take restaurants and their workers for granted. It’s taken a toll.”
The return to economic vitality in the United States is led by places to eat and drink, which also suffered among the highest losses in the last year. Balancing the financial benefits of a return to regular hours with worker safety, particularly in states where theoretical vaccine access outstrips actual supply, is the industry’s latest hurdle.
priority groups this spring. Immigrants, who make up a large segment of the restaurant work force, are often fearful of signing up, worrying that the process will legally entangle them.
Some states have dropped mask mandates and capacity limits inside establishments — which the Centers for Disease Control and Prevention still deem a potentially risky setting — further endangering employees.
“It is critical for food and beverage workers to have access to the vaccine, especially as patrons who come have no guarantee that they will be vaccinated and obviously will not be masked when eating or drinking,” said Dr. Alex Jahangir, the chairman of a coronavirus task force in Nashville. “This has been a major concern for me as we balance the competing interests of vaccinating everyone as soon as possible before more and more restrictions are lifted.”
Servers in Texas are dealing with all of the above. The state strictly limited early eligibility for shots, but last week opened access to all residents 16 and over, creating an overwhelming demand for slots. The governor recently dropped the state’s loosely enforced mask mandate, and allowed restaurants to go forth and serve all comers, with zero limitations.
require their workers be vaccinated in the future.
Many business sectors were battered by the coronavirus pandemic, but there is broad agreement that hospitality was hardest hit and that low wage workers sustained some of the biggest blows. In February 2020, for instance, restaurant worker hours were up 2 percent over a previously strong period the year before; two months later those hours were cut by more than half.
While hours and wages have recovered somewhat, the industry remains hobbled by rules that most other businesses — including airlines and retail stores — have not had to face. The reasons point to a sadly unfortunate reality that never changed: indoor dining, by nature of its actual existence, helped spread the virus.
report by the C.D.C. found that after mask and other restrictions were lifted, on-premise restaurants led to daily increase in cases and death rates between 40 and 100 days later. Although other settings have turned into super-spreading events — funerals, wedding and large indoor events — many community outbreaks have found their roots in restaurants and bars.
“Masks would normally help to protect people in indoor settings but because people remove masks when dining,” said Christine K. Johnson, professor of epidemiology and ecosystem health at the University of California, Davis, “there are no barriers to prevent transmission.”
Not all governments have viewed restaurant workers as “essential,” even as restaurants have been a very active part of the American food chains — from half-open sites to takeout operations to cooking for those in need — during the entire pandemic. The National Restaurant Association helped push the C.D.C. to recommend that food service workers be included in priority groups of workers to get vaccines although not all states followed the guidelines.
Almost every state in the nation has accelerated its vaccination program, targeting nearly all adult populations.
“Most people in our government have considered restaurants nonessential luxuries,” said Rick Bayless, the well-known Chicago restaurateur, whose staff scoured all vaccines sites for weeks to get workers shots. “I think that’s shortsighted. The human race is at its core social and when we deny that aspect of our nature, we do harm to ourselves. Restaurants provide that very essential service. It can be done safely, but to minimize the risk for our staff, we should be prioritized for vaccination.”
Texas did not designate as early vaccine recipients any workers beyond those in the health care and education sectors, but is now open to all.
the Breadfruit and Rum Bar, declined unemployment insurance, and have shied from signing up for a shot. “Before you can even make an appointment you have to put in your name and date of birth and email,” Ms. Leoni said. “Those are questions that are deterrents for people trying to keep a low profile.”
In Charleston, Mr. Shemtov was inspired by accounts of the immunization program in Israel, which was considered successful in part because the government took vaccines to job sites. “If people can’t get appointments, let’s bring them to them.”
Other restaurants are devoting hours to making sure workers know how to sign up, locating leftover shots and networking with their peers. Some offer time off for a shot and the recovery period for side effects.
Katie Button, the owner of Curate and La Bodega in Asheville, N.C.
Still, some owners are not taking chances. “If we go out of business because we are one of the few restaurants in Arizona that won’t reopen, so be it,” Ms. Leoni said. “Nothing is more important than someone else’s health or safety.”
His ideas were promoted with evangelical fervor in the 1970s particularly by two economists: Arthur Laffer, who became known for the “Laffer curve,” postulating that lower tax rates would generate higher government revenues, and Jude Wanniski, an editorial writer for The Wall Street Journal, whose opinion pages took up Professor Mundell’s cause after a series of lunches and dinners at the Midtown Manhattan restaurant Michael’s, which were later described by Robert Bartley, The Journal’s opinion editor, in his book “The Seven Fat Years” (1992).
Professor Mundell’s argument gained ground in part because mainstream Keynesian economists were on the defensive, having a hard time accounting for the unexpected combination of slower growth and rising inflation during much of the 1970s. Professor Mundell argued, in contrast to the conventional wisdom, that low tax rates and easy fiscal policies should be used to spur economic expansion, and that higher interest rates and tight monetary policy were the proper tools to curb inflation.
That approach, with results that are still being debated today, was embraced in the 1980s by President Ronald Reagan, who, in policy moves that came to be known as Reaganomics, cut tax rates sharply and backed the Federal Reserve Chairman Paul A. Volcker as he raised interest rates to bring inflation under control.
Stepping on ‘Intellectual Toes’
Throughout his career, Professor Mundell frequently battled with the giants of the profession, including Milton Friedman of the University of Chicago and Martin Feldstein of Harvard. But he also craved recognition and welcomed the prestige — and the $1 million award — that the Nobel Prize conferred.
In his 2006 interview, he said that winning the Nobel “was particularly pleasing to me as my work has been quite controversial and no doubt stepped on a lot of intellectual toes.”
He added: “Even more than that, when I say something, people listen. Maybe they shouldn’t, but they do.”
At the Nobel banquet, Professor Mundell, dressed in white tie and tails and accompanied by Ms. Natsios-Mundell and their 2-year-old son, Nicholas, ended his speech by serenading the surprised but delighted guests with a verse from Frank Sinatra’s signature song.