But it’s not clear how much of the crime is organized. Matthew Fernandez, 49, who works at a King Soopers in Broomfield, Colo., said he was stunned when he watched a thief walk out with a cart full of makeup, laundry detergent and meat and drive off in a Mercedes-Benz S.U.V.

“The ones you think are going to steal are not the ones doing it,” he said. “From high class to low class, they are all doing it.”

Ms. Barry often gives money to the homeless people who come into her store, so they can buy food. She also knows the financial pressures on people with lower incomes as the cost of living soars.

When people steal, she said, the company can write off the loss. But those losses mean less money for workers.

“That is part of my raise and benefits that is walking out the door,” she said. “That is money we deserve.”

Ella Koeze contributed reporting.

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Allianz to pay $6 billion in U.S. fraud case, fund manager charged

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NEW YORK/MUNICH, May 17 (Reuters) – Germany’s Allianz SE (ALVG.DE) agreed to pay more than $6 billion and its U.S. asset management unit pleaded guilty to criminal securities fraud over the collapse of a group of investment funds early in the COVID-19 pandemic.

Allianz’s settlements with the U.S. Department of Justice and U.S. Securities and Exchange Commission are among the largest in corporate history, and dwarf earlier settlements obtained under President Joe Biden’s administration.

Gregoire Tournant, the former chief investment officer who created and oversaw the now-defunct Structured Alpha funds, was also indicted for fraud, conspiracy and obstruction, while two other former portfolio managers entered related guilty pleas.

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Once with more than $11 billion of assets under management, the Structured Alpha funds lost more than $7 billion as COVID-19 roiled markets in February and March 2020.

Allianz Global Investors US LLC was accused of misleading pension funds for teachers, bus drivers, engineers, religious groups and others by understating the funds’ risks, and having “significant gaps” in its oversight. read more

Investors were told the funds employed options that included hedges to protect against market crashes, but prosecutors said the fund managers repeatedly failed to buy those hedges.

Prosecutors said the managers also inflated fund results to boost their pay through performance fees, with Tournant, 55, collecting $13 million in 2019 and becoming his unit’s highest or second-highest-paid employee from 2015 to 2019.

Investigators said the misrepresentations began in 2014, and helped Allianz generate more than $400 million of net profit.

At a news conference, U.S. Attorney Damian Williams in Manhattan said more than 100,000 investors were harmed, and that while American prosecutors rarely bring criminal charges against companies it was “the right thing to do.”

Investors “were promised a relatively safe investment with strict risk controls designed to weather a sudden storm, like a massive collapse in the stock market,” he said. “Those promises were lies…. Today is the day for accountability.”

BLAMING COVID

Also known for its insurance operations, Allianz is among Germany’s most recognizable brands and an Olympic sponsor.

Its namesake arena near its Munich headquarters, meanwhile, houses Bayern Munich, one of world’s best-known soccer teams.

The settlement calls for Allianz to pay a $2.33 billion criminal fine, make $3.24 billion of restitution and forfeit $463 million, court papers show.

Williams said the fine was significantly reduced because of Allianz’s compensation to investors.

Even so, the payout is close to twice the $3.3 billion in corporate penalties that the Justice Department collected for all of 2021.

An Allianz lawyer entered the guilty plea at a hearing before U.S. District Judge Loretta Preska in Manhattan.

Allianz also accepted a $675 million civil fine from by the SEC, one of that regulator’s largest penalties since Enron Corp and WorldCom Inc imploded two decades ago.

Shares of Allianz closed up 1.7% in Germany, with the payout broadly matching reserves that the company previously set aside.

Tournant, of Basalt, Colorado, surrendered to authorities on Tuesday morning.

The U.S.-French citizen appeared briefly in Denver federal court, and was released after agreeing to post a $20 million bond. An arraignment was set for June 2 in New York.

Tournant’s lawyers, Seth Levine and Daniel Alonso, said the investor losses were “regrettable” but did not result from a crime.

“Greg Tournant has been unfairly targeted [in a] meritless and ill-considered attempt by the government to criminalize the impact of the unprecedented, COVID-induced market dislocation,” the lawyers said in a joint statement.

The other two portfolio managers – Stephen Bond-Nelson, 51, of Berkeley Heights, New Jersey; and Trevor Taylor, 49, of Miami – agreed to plead guilty to fraud and conspiracy, and cooperate with prosecutors. Their lawyers declined immediate comment.

VOYA PARTNERSHIP

Allianz’s guilty plea carries a 10-year ban on Allianz Global Investors’ providing advisory services to U.S.-registered investment funds.

As a result, Allianz plans to move about $120 billion of investor assets to Voya Financial Inc (VOYA.N) in exchange for a stake of up to 24% in Voya’s investment management unit. It expects a final agreement in the coming weeks.

Regulators said the misconduct included when Tournant and Bond-Nelson altered more than 75 risk reports before sending them to investors.

The SEC said projected losses in one market crash scenario were changed to 4.15% from the actual 42.15%, simply by removing the “2.”

Allianz’s alleged oversight lapses included a failure to ensure Tournant was hedging, though prosecutors said only people in his group knew of the misconduct before March 2020.

“No compliance system is perfect, but the controls at AGI didn’t even stand a chance,” Williams said.

Bond-Nelson, at Tournant’s direction, also lied to Allianz’s in-house lawyers after the company learned about the altered reports and the SEC probe, prosecutors added.

“Unfortunately, we’ve seen a recent string of cases in which derivatives and complex products have harmed investors across market sectors,” SEC Chair Gary Gensler said in a statement.

Investors have also filed more than two dozen lawsuits against Allianz over the Structured Alpha funds.

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Reporting by Jonathan Stempel in New York and Tom Sims and Alexander Huebner in Munich
Additional reporting by Luc Cohen in New York
Editing by Chizu Nomiyama, Tomasz Janowski and Matthew Lewis

Our Standards: The Thomson Reuters Trust Principles.

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U.S. shale gas, LNG firms meet with European countries over supply crisis, article with image

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3D printed Natural Gas Pipes are placed on displayed U.S. and Russian flags in this illustration taken, January 31, 2022. REUTERS/Dado Ruvic/Illustration

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April 6 (Reuters) – At least a dozen U.S. shale gas executives on Wednesday held discussions with European energy officials on increasing U.S. fuel supplies to Europe as part of efforts to replace Russian imports.

At the meetings in Houston, foreign affairs, economic ministers and commercial buyers discussed how to lower their imports of Russian oil, coal and liquefied natural gas following Moscow’s invasion of Ukraine, trade group officials said. The European Union plans to cut its reliance on Russian gas by two-thirds this year. read more

Delegations from Latvia and Estonia, diplomats from Bulgaria, Estonia, France, Germany, Hungary, Latvia, and the United Kingdom toured the Golden Pass LNG export project in Sabine Pass, Texas, and later met in Houston with shale gas producers, Fred Hutchison, chief executive of trade group LNG Allies, said.

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Group discussions included top executives from Chesapeake Energy (CHK.O), Coterra Energy (CTRA.N), EOG Resources (EOG.N) and EQT Corp (EQT.N), he said. Individual meetings are planned between U.S. executives and Latvian, Estonian and Slovak commercial representatives.

“The situation in Europe is so precarious. All these countries that are dependent on Russian gas are committed to giving it up, in some cases completely,” said Hutchison.

Building LNG capacity takes years and ample new supplies will not be available until mid-decade. “The capacity challenges in 2022 are great but the opportunities in a few years are really terrific,” he said.

The meeting, coordinated by the American Exploration and Production Council (AXPC) along with LNG Allies, focused on ways to move Europe off Russian gas, including the need for more infrastructure in the United States and Europe, AXPC CEO Anne Bradbury said.

The need for new LNG plants was highlighted at a congressional hearing earlier on Wednesday by Pioneer Natural Resources Chief Executive Scott Sheffield. He urged Congress to embrace the construction of new U.S. plants.

“We need to build LNG facilities in the northeast,” Sheffield said.

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Reporting by Liz Hampton in Denver; Edited by Gary McWilliams, Richard Pullin and Barbara Lewis

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Taking On Starbucks, Inspired by Bernie Sanders

Starbucks allows employees who work at least 20 hours a week to obtain health coverage, more generous than most competitors, and has said it will increase average pay for hourly employees to nearly $17 an hour by this summer, well above the industry norm. The company also offers to pay the tuition of employees admitted to pursue an online bachelor’s degree at Arizona State University, helping it attract workers with college aspirations.

Such people, in turn, tend to be sympathetic to unions and a variety of social activism. A recent Gallup poll found that people under 35 or who are liberal are substantially more likely than others to support unions.

Several Starbucks workers seeking to organize unions in Buffalo; Boston; Chicago; Seattle; Knoxville, Tenn.; Tallahassee, Fla.; and the Denver area appeared to fit this profile, saying they were either strong supporters of Mr. Sanders and other progressive politicians, had attended college or both. Most were under 30.

“I’ve been involved in political organizing, the Bernie Sanders campaign,” said Brick Zurek, a leader of a union campaign at a Starbucks in Chicago. “That gave me a lot of skill.” Mx. Zurek, who uses gender-neutral courtesy titles and pronouns, also said they had a bachelor’s degree.

Len Harris, who has helped lead a campaign at a Starbucks near Denver, said that “I admire the progressivism, the sense of community” of politicians like Mr. Sanders and Representative Alexandria Ocasio-Cortez, Democrat of New York. She said that she had graduated from college and that she was awaiting admissions decisions for graduate school.

And most union supporters have drawn inspiration from their colleagues in Buffalo. Sydney Durkin and Rachel Ybarra, who are helping to organize a Starbucks in Seattle, said workers at their store discussed the Buffalo campaign almost daily as it unfolded and that one reached out to the union after the National Labor Relations Board announced the initial results of the Buffalo elections in December. (The union’s second victory was announced Monday, after the labor board resolved ballot challenges.)

Ms. Ybarra said the victory showed workers it was possible to unionize despite company opposition. “The Buffalo folks became superheroes,” she said. “A lot of us spent so much time being afraid of retaliation — none of us could afford to lose our jobs, have our hours cut.”

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For Retail Workers, Omicron’s Impact Isn’t Just About Health

Long checkout lines. Closed fitting rooms. Empty shelves. Shortened store hours.

Plus the dread of contracting the coronavirus and yet another season of skirmishes with customers who refuse to wear masks.

A weary retail work force is experiencing the fallout from the latest wave of the pandemic, with a rapidly spreading variant cutting into staffing.

While data shows that people infected with the Omicron variant are far less likely to be hospitalized than those with the Delta variant, especially if they are vaccinated, many store workers are dealing with a new jump in illness and exposures, grappling with shifting guidelines around isolation and juggling child care. At the same time, retailers are generally not extending hazard pay as they did earlier in the pandemic and have been loath to adopt vaccine or testing mandates.

“We had gotten to a point here where we were comfortable, it wasn’t too bad, and then all of a sudden this new variant came and everybody got sick,” said Artavia Milliam, who works at H&M in Hudson Yards in Manhattan, which is popular with tourists. “It’s been overwhelming, just having to deal with not having enough staff and then twice as many people in the store.”

said last week that it would shorten store hours nationally on Mondays through Thursdays for the rest of the month. At least 20 Apple Stores have had to close in recent weeks because so many employees had contracted Covid-19 or been exposed to someone who had, and others have curtailed hours or limited in-store access.

At a Macy’s in Lynnwood, Wash., Liisa Luick, a longtime sales associate in the men’s department, said, “Every day, we have call-outs, and we have a lot of them.” She said the store had already reduced staff to cut costs in 2020. Now, she is often unable to take breaks and has fielded complaints from customers about a lack of sales help and unstaffed registers.

“Morale could not be lower,” said Ms. Luick, who is a steward for the local unit of the United Food and Commercial Workers union. Even though Washington has a mask mandate for indoor public spaces, “we get a lot of pushback, so morale is even lower because there’s so many people who, there’s no easy way to say this, just don’t believe in masking,” she added.

Store workers are navigating the changing nature of the virus and trying their best to gauge new risks. Many say that with vaccinations and boosters, they are less fearful for their lives than they were in 2020 — the United Food and Commercial Workers union has tracked more than 200 retail worker deaths since the start of the pandemic — but they remain nervous about catching and spreading the virus.

local legislation.

More broadly, the staffing shortages have put a new spotlight on a potential vaccine-or-testing mandate from the Biden administration, which major retailers have been resisting. The fear of losing workers appears to be looming large, especially now.

While the retail industry initially cited the holiday season rush for its resistance to such rules, it has more recently pointed to the burden of testing unvaccinated workers. After oral arguments in the case on Friday, the Supreme Court’s conservative majority expressed skepticism about whether the Biden administration had legal authority to mandate that large employers require workers to be vaccinated.

The National Retail Federation, a major industry lobbying group, said in a statement last week that it “continues to believe that OSHA exceeded its authority in promulgating its vaccine mandate.” The group estimated that the order would require 20 million tests a week nationally, based on external data on unvaccinated workers, and that “such testing capacity currently does not exist.”

When the top managers at Mr. Waugh’s Stop & Shop store began asking employees whether they were vaccinated in preparation for the federal vaccine mandates that could soon take effect, he said, a large number expressed concern to him about being asked to disclose that information.

“It was concerning to see that so many people were distressed,” he said, though all of the employees complied.

Ms. Luick of Macy’s near Seattle said that she worked with several vocal opponents of the Covid-19 vaccines and that she anticipated that at least some of her colleagues would resign if they were asked to provide vaccination status or proof of negative tests.

Still, Macy’s was among major employers that started asking employees for their vaccination status last week ahead of the Supreme Court hearing on Friday and said it might require proof of negative tests beginning on Feb. 16.

“Our primary focus at this stage is preparing our members for an eventual mandate to ensure they have the information and tools they need to manage their work force and meet the needs of their customers,” said Brian Dodge, president of the Retail Industry Leaders Association, which includes companies like Macy’s, Target, Home Depot, Gap and Walmart.

As seasonal Covid-19 surges become the norm, unions and companies are looking for consistent policies. Jim Araby, director of strategic campaigns for the food and commercial workers union in Northern California, said the retail industry needed to put in place more sustainable supports for workers who got ill.

For example, he said, a trust fund jointly administered by the union and several employers could no longer offer Covid-related sick days for union members.

“We have to start treating this as endemic,” Mr. Araby said. “And figuring out what are the structural issues we have to put forward to deal with this.”

Kellen Browning contributed reporting.

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‘It’s Going to Be a Big Summer for Hard Seltzer’

The music should be pumping and the burgers and jerk chicken wings flying out of the kitchen this holiday weekend at the Rambler Kitchen and Tap in the North Center neighborhood of Chicago.

To wash it down, patrons might go with a mixed drink or one of the 20 craft beers the bar sells. But many will order a hard seltzer. The Rambler expects to sell close to 500 cans in flavors like peach, pineapple and grapefruit pomelo.

“We’ll sell a lot of buckets of White Claw and Truly seltzers,” said Sam Stone, a co-owner of the Rambler. “It’s going to be a big summer for hard seltzer.”

The Memorial Day weekend kicks off what many hope will be a more normal summer, when kids start counting down the number of days left in school, people head back to the beach and grills heat up for backyard parties that went poof last year because of the pandemic. And for the hard seltzer industry, it’s the start of a dizzying period when dozens of old and new competitors vie to be the boozy, bubbly drink of the season.

ad campaign with the British pop singer Dua Lipa. This spring, the hip-hop star Travis Scott released Cacti, a seltzer made with blue agave syrup, in a partnership with Anheuser-Busch. It quickly sold out in many locations.

“People were lining up outside of the stores to buy Cacti and share pictures of themselves with their carts full of Cacti,” said Marcel Marcondes, the chief marketing officer for Anheuser-Busch.

Also this spring, Topo Chico Hard Seltzer was released. A partnership between Coca-Cola and Molson Coors Beverage, it hit shelves in 16 markets across the country, chasing the cult following of Topo Chico’s seltzer water in the South.

“I feel like I can walk into a party saying, ‘Oh, yeah, I brought the Topo Chico,’” said Dane Cardiel, 32, who works in business development for a podcast company and lives in Esopus, N.Y., about 60 miles south of Albany.

How flavored bubbly water with alcohol became a national phenomenon is partly due to social media videos that went viral and clever marketing that sold hard seltzers as a “healthier” alcohol choice.

White Claw’s slim cans prominently state that the drinks contain only 100 calories, are gluten free and have only two grams each of carbohydrates and sugar. The brand is owned by the Canadian billionaire Anthony von Mandl, who created Mike’s Hard Lemonade.

“The health and wellness element is front and center in terms of the visual marketing,” said Vivien Azer, an analyst at the Cowen investment firm. “Every brand’s packaging features its relatively low carb and sugar data.”

On top of that, the alcohol content in most hard seltzers, about 5 percent, or the same as 12 ounces of a typical beer, is less than a glass of wine or a mixed drink. That makes it easier for people to sip at a party or while watching a game without getting intoxicated or winding up with the belly-full-of-beer feeling.

“It’s a nice drink for an afternoon on the patio,” said Shelley Majeres, the general manager of Blake Street Tavern in downtown Denver. “You can drink four or five of them in an afternoon and not have a big hangover or get really drunk.”

Blake Street, an 18,000-square-foot sports bar, started selling hard seltzers two years ago. Today, they make up about 20 percent of its can and bottle sales.

The industry has also neatly sidestepped the gender issue that plagued earlier, lighter alcoholic alternatives like Zima, which became popular with women but struggled to be adopted by men.

“I’ve got just as many men as women drinking it,” said Nick Zeto, the owner of Boston Beer Garden in Naples, Fla. “And it started with the millennials, but now I have people in their 40s, 50s and 60s ordering it.”

That kind of broad appeal is attractive to beer, wine and spirits companies.

“We view ourselves as the challenger brand,” said Michelle St. Jacques, the chief marketing officer of Molson Coors, which has been making beer since the late 1700s but hopes to end this year with 10 percent of the hard seltzer market.

Last spring, the company released Vizzy, a hard seltzer that contains vitamin C. Top Chico came this spring. “We feel like we’re making great progress in seltzer by not trying to bring me-too products, but rather products and brands that have a clear difference,” Ms. St. Jacques said.

While grocery and liquor stores have made plenty of space available to the hard seltzer brands that people drink at home, the competition to get into restaurants and bars is fierce. Most want to offer only two or three brands to their customers.

“Oh, my god, I get presented with new hard seltzer whenever they can get my attention,” said Mr. Stone, who sells six brands at the Rambler. The crowd favorite, he said, is the vodka-based High Noon Sun Sips peach, made by E.&J. Gallo Winery. “Everybody, from the big brands to small, new ones, are getting into the hard seltzer game.”

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Why Apple and Google’s Virus Alert Apps Had Limited Success

Sarah Cavey, a real estate agent in Denver, was thrilled last fall when Colorado introduced an app to warn people of possible coronavirus exposures.

Based on software from Apple and Google, the state’s smartphone app uses Bluetooth signals to detect users who come into close contact. If a user later tests positive, the person can anonymously notify other app users whom the person may have crossed paths with in restaurants, on trains or elsewhere.

Ms. Cavey immediately downloaded the app. But after testing positive for the virus in February, she was unable to get the special verification code she needed from the state to warn others, she said, even after calling Colorado’s health department three times.

“They advertise this app to make people feel good,” Ms. Cavey said, adding that she had since deleted the app, called CO Exposure Notifications, in frustration. “But it’s not really doing anything.”

announced last year that they were working together to create a smartphone-based system to help stem the virus, their collaboration seemed like a game changer. Human contact tracers were struggling to keep up with spiking virus caseloads, and the trillion-dollar rival companies — whose systems run 99 percent of the world’s smartphones — had the potential to quickly and automatically alert far more people.

Soon Austria, Switzerland and other nations introduced virus apps based on the Apple-Google software, as did some two dozen American states, including Alabama and Virginia. To date, the apps have been downloaded more than 90 million times, according to an analysis by Sensor Tower, an app research firm.

But some researchers say the companies’ product and policy choices limited the system’s usefulness, raising questions about the power of Big Tech to set global standards for public health tools.

Stephen Farrell and Doug Leith, computer science researchers at Trinity College in Dublin, wrote in a report in April on Ireland’s virus alert app.

CA Notify in December, about 65,000 people have used the system to alert other app users, the state said.

“Exposure notification technology has shown success,” said Dr. Christopher Longhurst, the chief information officer of UC San Diego Health, which manages California’s app. “Whether it’s hundreds of lives saved or dozens or a handful, if we save lives, that’s a big deal.”

In a joint statement, Apple and Google said: “We’re proud to collaborate with public health authorities and provide a resource — which many millions of people around the world have enabled — that has helped protect public health.”

Based in part on ideas developed by Singapore and by academics, Apple and Google’s system incorporated privacy protections that gave health agencies an alternative to more invasive apps. Unlike virus-tracing apps that continuously track users’ whereabouts, the Apple and Google software relies on Bluetooth signals, which can estimate the distance between smartphones without needing to know people’s locations. And it uses rotating ID codes — not real names — to log app users who come into close contact for 15 minutes or more.

said last year in a video promoting the country’s alert system, called Corona-Warn-App.

But the apps never received the large-scale efficacy testing typically done before governments introduce public health interventions like vaccines. And the software’s privacy features — which prevent government agencies from identifying app users — have made it difficult for researchers to determine whether the notifications helped hinder virus transmission, said Michael T. Osterholm, the director of the Center for Infectious Disease Research and Policy at the University of Minnesota.

“The apps played virtually no role at all in our being able to investigate outbreaks that occurred here,” Dr. Osterholm said.

Some limitations emerged even before the apps were released. For one thing, some researchers note, exposure notification software inherently excludes certain vulnerable populations, such as elderly people who cannot afford smartphones. For another thing, they say, the apps may send out false alarms because the system is not set up to incorporate mitigation factors like whether users are vaccinated, wearing masks or sitting outside.

Proximity detection in virus alert apps can also be inconsistent. Last year, a study on Google’s system for Android phones conducted on a light-rail tram in Dublin reported that the metal walls, flooring and ceilings distorted Bluetooth signal strength to such a degree that the chance of accurate proximity detection would be “similar to that of triggering notifications by randomly selecting” passengers.

Kimbley Craig, the mayor of Salinas, Calif. Last December, when virus rates there were spiking, she said, she downloaded the state’s exposure notification app on her Android phone and soon after tested positive for Covid-19. But after she entered the verification code, she said, the system failed to send an alert to her partner, whom she lives with and who had also downloaded the app.

“If it doesn’t pick up a person in the same household, I don’t know what to tell you,” Mayor Craig said.

In a statement, Steph Hannon, Google’s senior director of product management for exposure notifications, said that there were “known challenges with using Bluetooth technology to approximate the precise distance between devices” and that the company was continuously working to improve accuracy.

The companies’ policies have also influenced usage trends. In certain U.S. states, for instance, iPhone users can activate the exposure notifications with one click — by simply turning on a feature on their settings — but Android users must download a separate app. As a result, about 9.6 million iPhone users in California had turned on the notifications as of May 10, the state said, far outstripping the 900,000 app downloads on Android phones.

Google said it had built its system for states to work on the widest range of devices and be deployed as quickly as possible.

Some public health experts acknowledged that the exposure alert system was an experiment in which they, and the tech giants, were learning and incorporating improvements as they went along.

One issue they discovered early on: To hinder false alarms, states verify positive test results before a person can send out exposure notifications. But local labs can sometimes take days to send test results to health agencies, limiting the ability of app users to quickly alert others.

In Alabama, for instance, the state’s GuideSafe virus alert app has been downloaded about 250,000 times, according to Sensor Tower. But state health officials said they had been able to confirm the positive test results of only 1,300 app users. That is a much lower number than health officials would have expected, they said, given that more than 10 percent of Alabamians have tested positive for the coronavirus.

“The app would be a lot more efficient if those processes were less manual and more automated,” said Dr. Scott Harris, who oversees the Alabama Department of Public Health.

Colorado, which automatically issues the verification codes to people who test positive, has reported higher usage rates. And in California, UC San Diego Health has set up a dedicated help line that app users can call if they did not receive their verification codes.

Dr. Longhurst, the medical center’s chief information officer, said the California app had proved useful as part of a larger statewide public health push that also involved mask-wearing and virus testing.

“It’s not a panacea,” he said. But “it can be an effective part of a pandemic response.”

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The Small Business Administration’s Gaffes Are Now Her Job to Fix

Isabella Casillas Guzman, President Biden’s choice to run the Small Business Administration, inherited a portfolio of nearly $1 trillion in emergency aid and an agency plagued by controversy when she took over in March. She has been sprinting from crisis to crisis ever since.

Some new programs have been mired in delays and glitches, while the S.B.A.’s best-known pandemic relief effort, the Paycheck Protection Program, nearly ran out of money for its loans this month, confusing lenders and stranding millions of borrowers. Angry business owners have deluged the agency with criticism and complaints.

Now, it’s Ms. Guzman’s job to turn the ship around. “It’s the largest S.B.A. portfolio we’ve ever had, and clearly there’s going to need to be some changes in how we do business,” she said in a recent interview.

When the coronavirus crisis struck and the economy went into a free fall last year, Congress and the Trump administration pushed the Small Business Administration to the forefront, putting it in charge of huge sums of relief money and complicated new programs.

confusing, often-revised loan terms and several technical meltdowns — the program enjoyed some success. Millions of business owners credit it with helping them survive the pandemic and keep more workers employed.

Economists are skeptical about whether the program’s results justify its huge cost, but Mr. Trump and Mr. Biden both embraced the effort as a centerpiece of their economic rescue plans. As the pandemic stretched on and the economy plunged into a recession, the Paycheck Protection Program morphed into the largest business bailout in American history. More than eight million companies got forgivable loans, totaling $788 billion — nearly as much money as the government spent on its three rounds of direct payments to taxpayers.

Fraud is a major concern. Thousands of people took advantage of the rushed program’s minimal documentation requirements and sought illicit loans, according to prosecutors, to fund gambling sprees, Lamborghinis, luxury watches, an alpaca farm and a Medicare fraud scheme. The Justice Department has charged hundreds of people with stealing more than $440 million, and scores of federal investigations are active. (During her confirmation hearing, Ms. Guzman promised that she would “prioritize the reduction of fraud, waste and abuse.”)

There were other problems. Female and minority business owners were disproportionately left out of the relief effort. A last-minute attempt by Mr. Biden to make the program more generous for solo business owners came too late to help many of them. This month, a new emergency popped up: The program ran short of money and abruptly closed to most new applicants.

“There was no warning,” Toby Scammell, the chief executive of Womply, a company that helps borrowers get loans, said of the latest debacle. His company alone has more than 1.6 million applicants caught in limbo.

low-interest disaster loans of up to $500,000 and new grant funds, created by Congress, for two of the hardest-hit industries: the Shuttered Venue Operators Grant for live-event businesses and the Restaurant Revitalization Fund. (The hotel industry is pushing for its own version.)

Each required the agency to create policies and technology systems from scratch. The venue program has been especially rocky. On its scheduled start day, in early April, the application system completely failed, leaving desperate applicants hitting refresh and relying on social media posts for information and updates.

“I turned to my associate director and said, ‘I figured something like this would happen,’” said Chris Zacher, the executive director of Levitt Pavilion, a nonprofit performing arts center in Denver. The Small Business Administration revived the system three weeks later and has received 12,200 applications, but it does not anticipate awarding grants until late May.

have turned into primal screams of pain. (“I SERIOUSLY CANNOT TAKE THIS WITH SBA ANY LONGER” is one of the milder replies.) She said she understood the urgency.

“It’s definitely unprecedented — across the board, across the nation — and we are seeing multiple disasters at the same time,” she said. “The agency is highly focused on just still responding to disaster and implementing this relief as quickly as possible.”

This is Ms. Guzman’s second tour at the Small Business Administration. When President Barack Obama picked Maria Contreras-Sweet in 2014 to take over the agency, Ms. Guzman went along as a senior adviser and deputy chief of staff. The women had met in the mid-1990s. Ms. Guzman, a California native with an undergraduate degree from the University of Pennsylvania’s Wharton School of Business, was hired at 7Up/RC Bottling by Ms. Contreras-Sweet, an executive there.

“I was always impressed with her ability to handle jobs with steep learning curves — she has a quick grasp of complex concepts,” Ms. Contreras-Sweet said.

Ms. Guzman spent her first stint at the agency focused on traditional projects like its flagship lending program, which normally facilitates around $28 billion a year in loans. The time, the job is radically different.

community navigators” program, which will fund local organizations, including nonprofits and government groups, to work closely with businesses owned by people with disabilities or in underserved rural, minority and immigrant communities. It’s an expansion of a grass-roots effort by several nonprofits to get vulnerable businesses access to Paycheck Protection Program loans.

Ms. Guzman said she was bullish about that effort and other agency priorities, like expanding Black and other minority entrepreneurs’ access to capital — but first, like the clients it serves, the Small Business Administration has to weather the pandemic.

And to do that, it has to stop shooting itself in the foot.

The much-awaited second attempt at opening the Shuttered Venue Operators Grant fund was preceded by one final debacle: The agency announced — and then, less than a day before the date, abandoned — a plan to open the first-come-first-served fund on a Saturday. For those seeking aid that has not yet arrived, the incident felt like yet another kick in the teeth.

Ms. Guzman said she was aware of the need for her agency to overcome its limitations and rebuild its checkered reputation.

“This is a pivotal moment in time where we can leverage the interest in small business to really deliver a remarkable agency to them,” she said. “I value being the voice for the 30 million small and innovative start-ups around the country. What I always say to my staff is that I want these businesses to feel like the giants that they are in our economy.”

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