State Department security chief leaves post over Benghazi

WASHINGTON (Reuters) - The U.S. State Department said on Wednesday its security chief had resigned from his post and three other officials had been relieved of their duties following a scathing official inquiry into the September 11 attack on the U.S. mission in Benghazi.

Eric Boswell has resigned effective immediately as assistant secretary of state for diplomatic security, State Department spokeswoman Victoria Nuland said in a terse statement. A second official, speaking on condition of anonymity, said Boswell had not left the department entirely and remained a career official.

Nuland said that Boswell, and the three other officials, had all been put on administrative leave "pending further action."

An official panel that investigated the incident concluded that the Benghazi mission was completely unprepared to deal with the attack, which killed U.S. Ambassador Christopher Stevens and three other Americans.

The unclassified version of the report, which was released on Tuesday, cited "leadership and management" deficiencies, poor coordination among officials and "real confusion" in Washington and in the field over who had the authority to make decisions on policy and security concerns.

"The ARB identified the performance of four officials, three in the Bureau of the Diplomatic Security and one in the Bureau of (Near Eastern) Affairs," Nuland said in her statement, referring to the panel known as an Accountability Review Board.

Secretary of State Hillary Clinton accepted Boswell's decision to resign effective immediately, the spokeswoman said.

Earlier, a U.S. official who spoke on condition of anonymity said Boswell, one of his deputies, Charlene Lamb, and a third unnamed official has been asked to resign. The Associated Press first reported that three officials had resigned.

PANEL STOPS SHORT OF BLAMING CLINTON

The Benghazi incident appeared likely to tarnish Clinton's four-year tenure as secretary of state but the report did not fault her specifically and the officials who led the review stopped short of blaming her.

"We did conclude that certain State Department bureau-level senior officials in critical positions of authority and responsibility in Washington demonstrated a lack of leadership and management ability appropriate for senior ranks," retired Admiral Michael Mullen, one of the leaders of the inquiry, told reporters on Wednesday.

The panel's chair, retired Ambassador Thomas Pickering, said it had determined that responsibility for security shortcomings in Benghazi belonged at levels lower than Clinton's office.

"We fixed (responsibility) at the assistant secretary level, which is, in our view, the appropriate place to look for where the decision-making in fact takes place, where - if you like - the rubber hits the road," Pickering said after closed-door meetings with congressional committees.

The panel's report and the comments by its two lead authors suggested that Clinton, who accepted responsibility for the incident in a television interview about a month after the Benghazi attack, would not be held personally culpable.

Pickering and Mullen spoke to the media after briefing members of the House of Representatives Foreign Affairs Committee and Senate Foreign Relations Committee behind closed doors on classified elements of their report.

Clinton had been expected to appear at an open hearing on Benghazi on Thursday, but is recuperating after suffering a concussion, dehydration and a stomach bug last week. She will instead be represented by her two top deputies.

Clinton, who intends to step down in January, said in a letter accompanying the review that she would adopt all of its recommendations, which include stepping up security staffing and requesting more money to fortify U.S. facilities.

The National Defense Authorization Act for 2013, which is expected to go to Congress for final approval this week, includes a measure directing the Pentagon to increase the Marine Corps presence at diplomatic facilities by up to 1,000 Marines.

Some Capitol Hill Republicans who had criticized the Obama administration's handling of the Benghazi attacks said they were impressed by the report.

"It was very thorough," said Senator Johnny Isakson. Senator John Barrasso said: "It was very, very critical of major failures at the State Department at very high levels." Both spoke after the closed-door briefing.

Others, however, took a harsher line and called for Clinton to testify as soon as she is able.

"The report makes clear the massive failure of the State Department at all levels, including senior leadership, to take action to protect our government employees abroad," Representative Mike Rogers, the Republican chairman of the House Intelligence Committee, said in a statement.

Senator Bob Corker, who will be the top Republican on the Senate Foreign Relations Committee when the new Congress is seated early next year, said Clinton should testify about Benghazi before her replacement is confirmed by the Senate.

Republicans have focused much of their firepower on U.S. Ambassador to the United Nations Susan Rice, who appeared on TV talk shows after the attack and suggested it was the result of a spontaneous protest rather than a premeditated attack.

The report concluded that there was no such protest.

Rice, widely seen as President Barack Obama's top pick to succeed Clinton, withdrew her name from consideration last week.

(Additional reporting by Tabassum Zakaria and Susan Cornwell; Editing by Christopher Wilson)

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Apple "pinch-to-zoom" patent deemed invalid

SAN FRANCISCO: A filing in a high-stakes legal battle between Samsung and Apple revealed that a "pinch-to-zoom" patent central to the case has been deemed invalid.

The patent was a centerpiece of a trial that ended in August with a jury ordering Samsung to pay Apple $1.05 billion in damages for illegally copying iPhone and iPad features for its flagship Galaxy S smartphones.

Samsung provided US District Judge Lucy Koh a copy of a US Patent and Trademark Office preliminary determination that, upon review, the Apple pinch-to-zoom technology wasn't original enough to merit a patent.

Samsung hoped the filing would bolster its argument for a new trial or to have the damages award slashed.

Since the verdict, US patent officials tentatively invalidated an Apple patent on technology that gives a "rubber-band" springing effect when a finger tugs at the edge of a touch-screen smartphone. That patent was also at issue at the trial.

Koh on Monday denied Apple's request to ban a set of Samsung smartphones from the US market based on the jury's finding that the South Korean firm was guilty of infringing on six of the Cupertino, California-company's patents.

Even though Apple was victorious in the patent case, the iPhone and iPad maker failed to prove that the technology at issue was the driving factor in people's buying decisions, Koh reasoned in the ruling.

Samsung -- the world's top mobile and smartphone maker -- has appealed the verdict.

- AFP/al

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Twitter shuffles top execs, names new COO and CFO

Twitter CEO Dick Costolo confirmed via tweet today that the massive social network is now being headed by a new chief operating officer and chief financial officer.

Ali Rowghani moves into the COO position from his previous post of CFO at Twitter. Rowghani has been with the social network since 2010, when he joined the company after serving as CFO for the Disney-owned Pixar Animation Studios. According to AllThingsD, Rowghani is known for multi-tasking at the social network and contributing to Twitter's Promoted Suite of ad products.
Mike Gupta moved into Rowghani's former position after working as the treasurer for Zynga. According to AllThingsD, Gupta was at Zynga for about a year and beforehand worked as a high-level executive at Yahoo where he worked on online partnership deals with Microsoft.

It will be interesting to see what these two will do in coming up with ideas to create more revenue for Twitter.

In the past few months, the social network has been pushing hard on structural changes in hopes that it will boost profitability. In September, it announced a new mobile-first strategy aimed at settling on more user experience consistency across its many clients -- Web, iPhone, iPad, and
Android -- a move that it clearly hopes will help increase advertising revenue.

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Like many other tragedies, scammers stalk Newtown

NEWTOWN, Conn. The family of Noah Pozner was mourning the 6-year-old, killed in the Newtown school massacre, when outrage compounded their sorrow.

Someone they didn't know was soliciting donations in Noah's memory, claiming that they'd send any cards, packages and money collected to his parents and siblings. An official-looking website had been set up, with Noah's name as the address, even including petitions on gun control.

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Noah's uncle, Alexis Haller, called on law enforcement authorities to seek out "these despicable people."

"These scammers," he said, "are stealing from the families of victims of this horrible tragedy."

It's a problem as familiar as it is disturbing. Tragedy strikes — be it a natural disaster, a gunman's rampage or a terrorist attack — and scam artists move in.

It happened after 9/11. It happened after Columbine. It happened after Hurricane Katrina. And after this summer's movie theater shooting in Aurora, Colo.

Sometimes fraud takes the form of bogus charities asking for donations that never get sent to victims. Natural disasters bring another dimension: Scammers try to get government relief money they're not eligible for.

"It's abominable," said Ken Berger, president and CEO of Charity Navigator, which evaluates the performance of charities. "It's just the lowest kind of thievery."

Noah Pozner's relatives found out about one bogus solicitation when a friend received an email asking for money for the family. Poorly punctuated, it gave details about Noah, his funeral and his family. It directed people to send donations to an address in the Bronx, one that the Pozners had never heard of.

It listed a New York City phone number to text with questions about how to donate. When a reporter texted that number Wednesday, a reply came advising the donation go to the United Way.

The Pozner family had the noahpozner.com website transferred to its ownership. Victoria Haller, Noah's aunt, emailed the person who had originally registered the name. The person, who went by the name Jason Martin, wrote back that he'd meant "to somehow honor Noah and help promote a safer gun culture. I had no ill intentions I assure you."

Alexis Haller said the experience "should serve as a warning signal to other victims' families. We urge people to watch out for these frauds on social media sites."

Consumer groups, state attorneys general and law enforcement authorities call for caution about unsolicited requests for donations, by phone or email. They tell people to be wary of callers who don't want to answer questions about their organization, who won't take "no" for an answer, or who convey what seems to be an unreasonable sense of urgency.

"This is a time of mourning for the people of Newtown and for our entire state," Connecticut Attorney General George Jepsen said in a statement this week. "Unfortunately, it's also a time when bad actors may seek to exploit those coping with this tragedy."

But scam artists know that calamity is fertile ground for profit, watered by the goodwill of strangers who want to help and may not be familiar with the cause or the people they're sending money to.

After the shootings at Columbine High School in Littleton, Colo., scammers asked for credit card donations for victims' families. After the 9/11 attacks, the North American Securities Administrators Association warned investors to be wary of Internet postings encouraging them to invest in supposed anti-terrorist technologies.

In 2006, the FBI warned about an email widely circulated after the Sago, W.Va., mine explosion, which claimed to be from a doctor treating one of the survivors and asking for donations to cover medical bills.

"As was learned after the tragic events of 9/11/01, the tsunami disaster, and more recently with Hurricane Katrina, unscrupulous cyber criminals have shown the desire and means to exploit human emotion by attempting to defraud the public when they are perceived to be most vulnerable," the FBI said at the time.

This fall, the police in Aurora, Colo., accused a local woman of trying to profit off the deadly movie theater rampage by a gunman who killed 12 people. The woman told people that she was the caretaker for a little girl named Kadence, whose mother had died in the shooting. The police said the child was made up. The scam unraveled when a donor got a phone call from what seemed to be a woman imitating a child's voice.

When the government doled out disaster aid after Hurricane Katrina, scammers asked for money to rebuild houses they never lived in or to pay benefits for relatives who never existed.

The government later set up the National Center for Disaster Fraud to try to root out such scams in the federal relief programs administered after Hurricanes Katrina, Rita and Wilma. It has since expanded its mandate to other disasters.

The cases brought since then by the Justice Department sketch a colorful picture of fraud:

— A woman who filed for small-business disaster benefits after the 2010 Gulf Coast oil spill, even though she'd sold the business before the accident.

— A judge and a commissioner in Texas who, after Hurricane Ike, were accused of awarding debris removal contracts to a company in return for kickbacks. The judge also commandeered a 155-kilowatt generator meant for the county to power his convenience store, according to the government.

— A pastor who submitted inflated claims to a government-funded program that reimbursed groups sheltering Hurricane Katrina evacuees.

Bob Webster, spokesman for the NASAA, knows the sad pattern.

"We know cons try to cash in on headlines, and any who would even think about stooping to capitalize on the tragedy in Newtown are the lowest of the low," he said.

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Obama Invokes Newtown on 'Cliff' Deal

Invoking the somber aftermath of the school massacre in Newtown, Conn., President Obama today appealed to congressional Republicans to embrace a standing "fair deal" on taxes and spending that would avert the fiscal cliff in 13 days.

"If there's one thing we should have after this week, it should be a sense of perspective about what's important," Obama said at a midday news conference.

"I would like to think that members of that [Republican] caucus would say to themselves, 'You know what? We disagree with the president on a whole bunch of things,'" he said. "'But right now what the country needs is for us to compromise.'"

House Speaker John Boehner's response: "Get serious."

Boehner announced at a 52-second news conference that the House will vote Thursday to approve a "plan B" to a broad White House deal -- and authorize simply extending current tax rates for people earning less than $1 million a year and little more.

"Then, the president will have a decision to make," the Ohio Republican said. "He can call on Senate Democrats to pass that bill or he could be responsible for the largest tax increase in American history."

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Unless Congress acts by Dec. 31, every American will face higher income tax rates and government programs will get hit with deep automatic cuts starting in 2013.

Obama and Boehner have been inching closer to a deal on tax hikes and spending cuts to help reduce the deficit. But they have not yet had a breakthrough on a deal.

Obama's latest plan would raise $1.2 trillion in new tax revenue over 10 years, largely through higher tax rates on incomes above $400,000. He also proposes roughly $930 billion in spending cuts, including new limits on entitlement spending, such as slower annual cost-of-living increases for Social Security beneficiaries.

Boehner has agreed to $1 trillion in new tax revenue, with a tax rate hike for households earning over $1 million. He is seeking more than $1 trillion in spending cuts, with significant changes to Medicare and Social Security.

The president said today that he remains "optimistic" about reaching a broad compromise by Christmas because both sides are "pretty close," a sentiment that has been publicly shared by Boehner.

But the speaker's backup plan has, at least temporarily, stymied talks, with no reported contact between the sides since Monday.

"The speaker should return to the negotiating table with the president because if he does I firmly believe we can have an agreement before Christmas," said Sen. Chuck Schumer, D-N.Y., a White House ally.

Schumer said Obama and Boehner are "not that far apart" in the negotiations.

"If they were to come to an agreement by Friday, they could write this stuff over the Christmas break and then we'd have to come back before the New Year and pass it," Schumer said.

Obama said he is "open to conversations" and planned to reach out to congressional leaders over the next few days to try to nudge Republicans to accept a "fair deal."

"At some point, there's got to be, I think, a recognition on the part of my Republican friends that -- you know, take the deal," he told reporters.

"They keep on finding ways to say no, as opposed to finding ways to say yes," Obama added. "At some point, you know, they've got take me out of it and think about their voters and think about what's best for the country."

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Inquiry harshly criticizes U.S. State Department over Benghazi attack

WASHINGTON (Reuters) - Security at the U.S. mission in Benghazi, Libya was grossly inadequate to deal with a September 11 attack that killed a U.S. ambassador and three others because of systemic failures within the State Department, an official inquiry found on Tuesday.

In a scathing assessment, the review cited "leadership and management" deficiencies at two bureaus of the department, poor coordination among officials in Washington and "real confusion" on the ground over who had the responsibility, and the power, to make decisions that involved policy and security concerns.

The attack killed Ambassador Christopher Stevens and three other Americans and set off a political furor as Republicans used the issue to attack President Barack Obama before the November 6 election.

The report's harsh assessment seemed likely to tarnish the four-year tenure of Secretary of State Hillary Clinton, who said in a letter accompanying the review that she would adopt all of its recommendations.

"Systemic failures and leadership and management deficiencies at senior levels within two bureaus of the State Department ... resulted in a special mission security posture that was inadequate for Benghazi and grossly inadequate to deal with the attack that took place," said the report by the official "Accountability Review Board."

The report specifically faulted the State Department's Bureau of Near Eastern Affairs and its Bureau of Diplomatic Security.

The incident has raised questions about the adequacy of security at U.S. embassies around the globe and where to draw the line between protecting American diplomats in dangerous places while giving them enough freedom to do their jobs.

Jon Alterman, head of the Middle East program at the Center for Strategic and International Studies, said the assessment reflected poorly on Clinton and its recommendations would probably make life harder for diplomats in the field

"This is a mark against Secretary Clinton. While she was not singled out, the report highlighted the lack of leadership and organization on security issues, and those fall into her bailiwick," Alterman said.

"The report, however, relies a little too much on bureaucratic fixes," he added. "Sprinkling people throughout the system who are not only empowered to say 'no,' but have an institutional interest in doing so, will make it harder for diplomats to get out of tightly guarded facilities."

The political uproar in the United States over the Benghazi attack has already claimed one victim.

U.S. Ambassador to the United Nations Susan Rice, widely tipped as a front-runner to replace Clinton when she steps down as secretary of state early next year, last week withdrew her name from consideration, saying she wished to avoid a potentially disruptive Senate confirmation process.

Republican lawmakers had blasted Rice for comments she made on several television talk shows in the aftermath of the attack in which she said preliminary information suggested the assault was the result of protests over an anti-Muslim video made in California rather than a premeditated strike.

The review. however, concluded that no protest took place before the attack.

Rice has said she was relying on talking points drawn up by U.S. intelligence officials.

(Editing by Christopher Wilson)

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Strong turnout for South Korea's presidential election

SEOUL: South Koreans cast their votes Wednesday in a tight and potentially historic presidential election that could result in Asia's fourth-largest economy selecting its first female leader.

The ballot is a straight fight between Park Geun-Hye, the conservative daughter of assassinated dictator Park Chung-Hee, and her liberal rival Moon Jae-In, the son of North Korean refugees.

Opinion polls indicate the result could go either way.

The eventual occupant of the presidential Blue House will have to deal with a belligerent North Korea, a slowing economy and soaring welfare costs in one of the world's most rapidly ageing societies.

Park, 60, was looking to make history by becoming the first female president of a still male-dominated nation, and the first to be related to a former leader.

Her father remains one of modern Korea's most polarising figures -- admired for dragging the country out of poverty and reviled for his ruthless suppression of dissent during 18 years of military rule.

He was shot dead by his spy chief in 1979. Park's mother had been killed five years earlier by a pro-North Korea gunman aiming for her father.

Moon, who was chief of staff to the late left-wing president Roh Moo-Hyun, is a former human rights lawyer who was once jailed for protesting against the Park Chung-Hee regime.

Polling booths opened at 6:00am (2100 GMT Tuesday) on a bright, chilly winter's morning, with the temperature hovering around -10 Celsius (14 Fahrenheit).

Initial turnout among the 40 million-plus registered voters was strong, with 35 percent having cast their votes by midday -- a sharp increase on the 2007 election.

"It's freezing cold, but I plead with the people to come out and vote to open a new era for this country," Park, wrapped up in a long coat and red scarf, said as she cast her ballot in Seoul.

After locking in the support of their respective conservative and liberal bases, the two candidates put a lot of campaign effort into wooing crucial centrist voters, resulting in significant policy overlap.

Both have talked of "economic democratisation" -- a campaign buzzword about reducing the social disparities caused by rapid economic growth -- and promised to create new jobs and increase welfare spending.

Moon has been more aggressive than Park in his proposals for reining in the power of the giant family-run conglomerates, or "chaebol" that dominate the economy.

"This is the only way for the people to change the world," Moon said as he voted in the southern city of Busan.

"This election is about our livelihoods, economic democracy, welfare and peace on the Korean peninsula," he added.

While both have signalled a desire for greater engagement with Pyongyang, Park's approach is far more cautious than Moon's promise to resume aid without preconditions and seek an early summit with North Korean leader Kim Jong-Un.

Although North Korea has not been a major campaign issue, its long-range rocket launch last week -- seen by critics as a disguised ballistic missile test -- was a reminder of the unpredictable threat from across the border.

The never-married Park has promised a strong, parental style of leadership that would steer the country through the challenges of global economic troubles.

"Like a mother who dedicates her life to her family, I will become the president who takes care of the lives of each one of you," Park said in her last televised news conference on Tuesday.

A female president would be a big change for a country that the World Economic Forum recently ranked 108th out of 135 countries in terms of gender equality -- one place below the United Arab Emirates and just above Kuwait.

Older Koreans, who generally favour Park, are seen as more dependable voters and Moon's camp has pushed hard to ensure the younger demographic that make up his support base cast their ballots.

One early voter, Kim Su-Eun, 29, said she had opted for the ruling party candidate.

"I think Moon's election promises are too radical while Park says she will carry out reform step by step. That's why I voted for her", she told AFP.

- AFP/al

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Yahoo China quietly shutters its music service

Yahoo has announced that it is terminating its music service in China as of next month, according to The Next Web.

Apparently the closure comes as the Web giant looks to rework its product strategies.

"Thank you all for your continued support of Yahoo's products," a statement posted on the Yahoo China's music search portal read, according to The Next Web. "As part of an adjustment to our product strategy, we have decided to stop providing the Yahoo [China] Music service starting January 20, 2013."

With new CEO Marissa Mayer on board, Yahoo has been hinting at restructuring. Her hiring came shortly after the company agreed to sell its stake in China's largest e-commerce company Alibaba for $7.6 billion. Mayer suggested that Yahoo might use the proceeds of the deal for new acquisitions.

According to The Next Web, Alibaba will continue to run Yahoo China as the companies finish their transitional period over the next few years.

Yahoo isn't the only tech company to drop its music business in China. Google shut down its Chinese music download service in September. Google said that the product wasn't doing as well as expected, so it "decided to shift resources to other products."

CNET contacted Yahoo for comment. We'll update the story when we get more information.

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Texas school district encourages armed teachers for protection

HARROLD, Texas -- There's at least one school that welcome firearms to class.

It believes nothing makes a school safer than teachers who are armed,

The Harrold Independent School District is one building with 103 students. It's 20 minutes away from the nearest sheriff's station. Superintendent David Thweatt created what he calls a "guardian plan" after the attack at Virginia Tech.

"These people that go in and do these horrible acts, they're evil. But they're not that crazy -- they always know where they are going to get resistance," Thweatt said.

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Teachers and administrators here carry concealed handguns. They won't say how many faculty members are armed. They get extra training, but the district would not give us details.

Some people are horrified when he starts talking about putting guns in schools with children, but Thweatt said it's important to be safe.

"Sure, but it's a pretty horrific thing that happened the other day." Thweatt said. "And quite a few people are not horrified. Quite a few people we have in our district, since we have a high-transfer district, people bring their students to us for that protection."

Texas law allows concealed weapons in schools with a district's permission. Harrold was the first district to do it. A similar proposal was vetoed by Michigan's governor Tuesday.

Thweatt says allowing the firearms into the school will dissuade anyone who wants to hurt the kids.

"That's the bottom line," he said.

Since the shootings in Connecticut, Superintendent Thweatt has gotten calls from districts around the state and as far away as Missouri from school administrators asking whether they might be able to implement similar plans.

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Newtown Shooting: Bushmaster Under Fire

When the private investment firm Cerberus Capital Management announced Tuesday it would unload its interest in Bushmaster – the company that built the weapon used in last week's mass murder of 20 Connecticut first graders -- it marked the beginning of what experts say is likely to be a challenging period for the North Carolina-based weapons manufacturer.

"They are looking at a taint on their brand and looking at a marketplace that could change dramatically with respect to their weapon," said Chris Lehane, a crisis public relations expert who worked in the Clinton White House. "To me the fact that Cerberus is pulling out is a pretty significant defining moment."

For years, Bushmaster has been marketing itself to testosterone-fueled male customers, issuing "man cards" to customers who want to be "card carrying men." Now, Lehane and others said the company is facing the prospect of being branded the weapon of choice for mass killers. The Newtown, Connecticut shooting marked the fourth time a Bushmaster has been implicated in a mass shooting since 1999, including the Beltway sniper case that left 10 dead and three more wounded.

Cerberus announced Tuesday it wanted distance from Bushmaster, calling the murder of 20 first grade children at Sandy Hook Elementary School a "watershed event." The investment firm, which is chaired by former Vice President Dan Quayle, noted in its statement that Bushmaster may not be an investment consistent with the interests of its clients. Its investors include the pension plans of firemen, teachers, and policemen.

Rich Pedroncelli/AP Photo

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Lehane said the announcement could signal a shift in the way investors view companies that make military style weapons for a civilian market.

"It reminds me of the time when tobacco began to be associated with a negative light, or the divestiture movement surrounding companies in South Africa," he said. "Where financial markets believe they are going to pay a price."

In addition, a spokesman for Cerberus Group confirmed that the father of Stephen Feinberg, the founder of Cerberus Group, lives in Newtown.

Gun control groups have also lined up to criticize the weapons manufacturer, arguing that the company was selling civilian customers a weapon clearly designed for war.

"This thing is just a killing machine," said Josh Horwitz, executive director of the Coalition to Stop Gun Violence. "[I]t's a weapon that can easily shoot hundreds of … In fact it's very similar to the weapon that James Holmes used to shoot up the movie theater in Aurora."

The company has not responded to phone calls seeking comment, but gun enthusiasts say the weapon's menacing appearance can appeal to civilians looking for a means to secure their homes, and its ease of use can appeal to those looking for a weapon for target shooting.

"The [assault rifle] platform is the most popular in the country," said Frank Cornwall, a firearms instructor in Connecticut. "Civilians have always bought similar type arms to the military. And this is a very versatile platform. Quite a popular hunting and target shooting gun."

Phillip Stutts, a crisis management consultant who worked for President George W. Bush, said he has been surprised by the silence of the gun manufacturer.

"Bushmaster doesn't have to take responsibility for this tragedy, but they have a responsibility to respond to this tragedy," he said. "And they haven't. They have to get out in front of this. It needs to be corrected ASAP."

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