EU launches first navy mission, in pirate-infested seas

The European Union is set to launch its first-ever naval operation on Monday, with six warships and three surveillance planes patrolling pirate infested seas in the Horn of Africa.

The EU vessels face the daunting task of covering an area of around one million square kilometres, in waters that have seen nearly 100 ships attacked by pirates this year.

And the mission's ability to serve any meaningful purpose -- beyond a deterrant role -- remains under a cloud, with critics saying the only way to beat piracy is to start the battle on land, in lawless Somalia.

For a year, vessels from at least eight countries -- Belgium, Britain, France, Germany, Greece, the Netherlands, Spain and Sweden -- will escort aid ships and carry out anti-piracy duties under British Admiral Phillip Jones.

With a headquarters in Northwood near London, the fleet will initially be led off the coast of Somalia by Greek Admiral Antonios Popaioannou, with a Spaniard and then a Dutch officer taking over after three month terms.

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Former Nasdaq chairman arrested for fraud

Bernard Madoff, a longtime fixture on Wall Street, was arrested and charged on Thursday with allegedly running a $50 billion Ponzi scheme, U.S. authorities said.

The former chairman of the Nasdaq Stock Market who remains a member of Nasdaq OMX Group Inc's nominating committee, is best known as the founder of Bernard L. Madoff Investment Securities LLC, the closely-held market-making firm he founded in 1960.

But the alleged fraud involved a hedge fund he ran from a separate floor of the building where his brokerage is based.

Madoff told senior employees of his firm on Wednesday that “it's all just one big lie” and that it was “basically, a giant Ponzi scheme,” with estimated investor losses of about $50 billion, according to a criminal complaint against him.

A Ponzi scheme is a pyramid-type swindle in which very high returns are promised to early investors, who are paid off with money put up by later investors.

Prosecutors charged Madoff, 70, with a single count of securities fraud. They said he faces up to 5 years in prison and a fine of up to $5 million.

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