DealBook: Crime Forfeiture Pays for U.S. Attorney's Office (Sometimes in Dinosaur Bones)

The federal government runs a multibillion-dollar business in Lower Manhattan with an unusual and diverse revenue stream.

In the last year, the government’s prosecutorial branch in Manhattan has taken in about $160 million from an online poker operation and more than $2 billion from a failed Ponzi scheme. Last week, it even secured a Tyrannosaurus skeleton from Mongolia valued at more than $1 million.

This business is the asset forfeiture unit of the United States attorney’s office in Manhattan. In 2012, the unit recovered about $3 billion in crime proceeds — the largest amount ever recovered by a single United States attorney’s office since the Justice Department established the asset forfeiture program four decades ago. It also accounts for 68 percent of the national total last year from the country’s 93 United States attorney’s offices, according to government figures.

“Asset forfeiture is an important part of the culture here and an example of the government being efficient and bringing home the bacon,” Preet Bharara, the United States attorney in Manhattan, said in a recent interview.

The aggressive use of forfeiture as a legal mechanism to seize and freeze criminal proceeds has long been a hallmark of Manhattan’s federal prosecutors. Securing forfeited assets is a priority of the office in part because many of the largest financial fraud cases are centered in New York.

“To put someone in jail is very important, but equally important is to provide the crime victims with some type of compensation,” said Sharon Cohen Levin, an assistant United States attorney who has run the office’s forfeiture unit for 16 years.

The Justice Department’s program has plenty of critics. Many judges and defense lawyers say that the policies can be arbitrary and harsh. In recent decades, forfeiture powers have greatly expanded, leading to overzealous and mean-spirited conduct by prosecutors, critics say. In 2000, Congress reined in prosecutors with the Civil Asset Forfeiture Reform Act, which instituted a number of changes.

“Congress needs to revisit the forfeiture laws to curb continuing abuses,” said David B. Smith, a defense lawyer in Alexandria, Va., and the author of a leading treatise on forfeiture. “The procedures need to be made more fair, particularly for innocent third parties whose property rights can be easily destroyed without even having an opportunity to challenge the basis for the forfeiture.”

The seized money ends up in different places. Where there are not identifiable victims, as in drug crimes, proceeds are placed in two asset forfeiture funds: one controlled by the Justice Department and the other by the Treasury Department. Most of that money is used to bolster various law enforcement initiatives.

But the majority of the forfeited assets end up back in the hands of defrauded victims.

In March 2012, for instance, as part of a settlement, the publicly held Science Applications International Corporation, the primary contractor on New York’s scandal-ridden CityTime payroll project, forfeited about $500 million in connection with its role in a fraud and kickback scheme.

More than 90 percent of that amount was given back to the city as compensation for its losses on the CityTime project. That money allowed New York to fill more than 2,500 teaching positions that would otherwise have been eliminated in the budget for the coming fiscal year, according to the city.

In certain cases, the forfeiture process can be painstaking and take years to resolve, as in the Adelphia Communications accounting fraud, which led to the largest single distribution of forfeited assets to victims in the Justice Department’s history.

Last spring, a decade after the office began its investigation of the Adelphia fraud, about $730 million was distributed to victims. Adelphia’s former chief executive, John Rigas, and his son Timothy Rigas, who was chief financial officer, are both serving prison time after their convictions and agreed along with other family members to forfeit more than 95 percent of the family’s assets to the government.

The complicated process, overseen by a court-appointed special master, Richard C. Breeden, involved setting up a victim fund and then processing more than 13,000 petitions and verifying monetary losses of the company’s shareholders.

The Adelphia distribution, though, is likely to be dwarfed by the amount of money that the government returns to defrauded investors in the Ponzi scheme orchestrated by Bernard L. Madoff. Mr. Bharara’s office has worked alongside Irving H. Picard, the trustee in the Madoff case, to secure compensation for the victims.

Virtually all of the government’s recovery for Mr. Madoff’s victims comes from the settlement of claims against the estate of Jeffry M. Picower, who died in 2009 and was one of Mr. Madoff’s original and largest investors. Of the $7.2 billion that Mr. Picower’s widow agreed to return to victims, $2.2 billion went to the Justice Department, with the rest going to Mr. Picard for eventual distribution.

Last month, the government named Mr. Breeden, the supervisor of the Adelphia case, to serve as special master to administer the forfeiture proceeds in the Madoff case.

Of the $17.3 billion of actual cash losses in Mr. Madoff’s fraud, the trustee has recovered about $9.3 billion and distributed about $3.7 billion of that to eligible victims. The $2.35 billion seized by prosecutors under forfeiture laws will be doled out separately by the Justice Department, which has said it expects the victim claims process to begin shortly.

Another substantial forfeiture case last year involved Full Tilt Poker and PokerStars, two large online poker Web sites. To settle a lawsuit against the companies, Full Tilt agreed to forfeit essentially all of its assets and PokerStars agreed to forfeit $547 million — representing revenue from illegal gambling and proceeds from money laundering — that will be paid out in several installments. To date, about $160 million has been forfeited.

But last year’s most exotic forfeiture action involved the Mongolian dinosaur case. Last week, a paleontologist admitted to illegally shipping dinosaur fossils to the United States from Asia. As part of a plea agreement, the paleontologist, Eric Prokopi, agreed to forfeit a Tyrannosaurus skeleton that had been put up for auction for more than $1 million, along with five other dinosaur skeletons.

The fossils will be returned to the Mongolian government; Mr. Prokopi faces a possible prison sentence.

The reptile remnants represent just a fraction of the 2012 forfeiture proceeds secured by Mr. Bharara and his colleagues — proceeds that amounted to more than 60 times the office’s annual budget.

“As I like to joke,” Mr. Bharara said, “that’s a lot better than the investment return of any hedge fund.”

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Ruthless Smuggling Rings Put Rhinos in the Cross Hairs

KRUGER NATIONAL PARK, South Africa — They definitely did not look like ordinary big-game hunters, the stream of slender young Thai women who showed up on the veld wearing tight blue jeans and sneakers.

But the rhinoceros carcasses kept piling up around them, and it was only after dozens of these hulking, relatively rare animals were dead and their precious horns sawed off that an extravagant scheme came to light.

The Thai women, it ends up, weren’t hunters at all. Many never even squeezed off a shot. Instead, they were prostitutes hired by a criminal syndicate based 6,000 miles away in Laos to exploit loopholes in big game hunting rules and get its hands on as many rhino horns as possible — horns that are now literally worth more than gold.

“These girls had no idea what they were doing,” said Paul O’Sullivan, a private investigator in Johannesburg who helped crack the case. “They thought they were going on safari.”

The rhino horn rush has gotten so out of control that it has exploded into a worldwide criminal enterprise, drawing in a surreal cast of characters — not just Thai prostitutes, but also Irish gangsters, Vietnamese diplomats, Chinese scientists, veterinarians, chopper pilots, antiques dealers and recently an American rodeo star looking for a quick buck who used Facebook to find some horns.

Driven by a common belief in Asia that ground-up rhino horns can cure cancer and other ills, the trade has also been embraced by criminal syndicates that normally traffic drugs and guns, but have branched into the underground animal parts business because it is seen as “low risk, high profit,” American officials say.

“Get caught smuggling a kilo of cocaine, you will receive a very significant prison sentence,” said Ed Grace, a deputy chief with the United States Fish and Wildlife Service. But with a kilogram of rhino horn, he added, “you may only get a fine.”

The typical rhino horn is about two feet long and 10 pounds, much of it formed from the same substance as fingernails. Yet it can fetch nearly $30,000 a pound, more than crack cocaine, and conservationists worry that this “ridiculous price,” as one wildlife manager put it, could drive rhinos into extinction.

Gangs are so desperate for new sources of horn that criminals have even smashed into dozens of glass museum cases all across Europe to snatch them from exhibits.

“Astonishment and rage, that’s what we felt,” said Paolo Agnelli, a manager at the Florence Museum of Natural History, after three rhino horns were stolen last year, including a very rare one from 1824.

American federal agents recently staged a cross-country undercover rhino horn sting operation, called Operation Crash, “crash” being the term for a herd of rhinos.

Among the 12 people arrested: Wade Steffen, a champion steer wrestler from Texas, who pleaded guilty in May to trafficking dozens of horns that he found through hunters, estate sales and Facebook; and two members of an Irish gang — the same gang suspected of breaking into the museums across Europe.

In an e-mail to an undercover agent, an Irish gangster bragged: “Believe me WE NEVER LOSES A HORN TO CUSTOMS, we have so many contacts and people payed off now we can bring anything we want out of nearly any country into Europe.”

Corruption is a huge element, just like in the illegal ivory trade, in which rebel groups, government armies and threadbare hunters have been wiping out tens of thousands of elephants throughout Africa, selling the tusks to sophisticated criminal networks that move them across the globe with the help of corrupt officials.

Here in South Africa, home to the majority of the world’s last surviving 28,000 rhinos or so, the country is throwing just about everything it has to stop the slaughter — thousands of rangers, the national army, a new spy plane, even drones — but it is losing.

The number of rhinos poached in South Africa has soared in the past five years, from 13 killed in 2007 to more than 630 this year. The prehistoric, battleship-gray animals are often found on their knees, bleeding to death from a gaping stump on their face.

“Ever seen a dead rhino?” said Philip Jonker, who works for a private security firm that has gone into wildlife protection. “It’s worse than going to a funeral.”

Gaia Pianigiani contributed reporting from Rome.

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iPad App Video Review: Anomaly Korea

The tower offense pioneers over at 11 Bit Studios finally released the sequel to their smash hit, Anomaly Warzone Earth. They branched out a bit, releasing the amusing Funky Smugglers and the dreamlike puzzler, Sleepwalker’s Journey, but now they’re back, and as this game will remind you a few times, Baghdad was just the beginning. The battle against a mysterious alien tower menace continues with new visuals, units, modes, and an awesome but sometimes hilarious Korean undertone.

The core game here is still the same, with you planning convoy routes through enemy infested streets, able to change your route on the fly. You technically continue to play as the invisible but ever-present commando unit, with your various power-ups, such as smoke screen, repair field, and others, activating and placing them with a simple tap or two. New units like the Horangi tank join your ranks, with unique unit abilities, like the aforementioned tank’s area of effect blast. As you make your way through the world, you’ll collect resources and upgrade units as well.

It’s not just new unit and enemy types mixing things up. For example, there are now artillery zones that will automatically be targeted and be fired upon as you pass through them, but only after a short countdown. Subtle additions like this are quite elegant, adding more dimensions of strategy without changing anything from previous games. Another great new addition is the Art of War trials. As you play and do well, you’ll unlock these brief but brutal challenges, and they are very satisfying to complete.

The visuals have received an upgrade, as has the voice acting. Still, there’s something kind of funny about all the Korean accented English speaking, along with the still excellent Asian-styled soundtrack. It’s not bad at all, but can feel out of place at first. All in all, Anomaly Korea offers more of the same, but improved, building upon the last game in all the right ways. You don’t even need to have played the first game to enjoy this one, so go ahead and download it for the current price of three dollars. I can’t wait to see where in the world this anomaly pops up next.

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Who might fill the NFL coaching openings

When NFL coaching jobs open, the names Jon Gruden, Bill Cowher and Tony Dungy immediately surface as potential candidates.

Much more likely than any of those Super Bowl winners returning to the sideline for 2013 would be the hirings of more obscure assistant coaches such as Mike Zimmer, Mike McCoy and Gus Bradley.

And Jon Gruden's younger brother, Jay.

Sure, some of the best-known coaches, including Andy Reid, Lovie Smith and Ken Whisenhunt, who lost their jobs Monday, will be in the mix. So might college coaches Chip Kelly of Oregon and Bill O'Brien of Penn State.

Maybe even Nick Saban, although leaving Alabama for the NFL is a long shot.

Bringing in highly accomplished coordinators has been the most common route for NFL teams lately. Cincinnati's Zimmer and Gruden and Denver's McCoy top most lists, along with Bruce Arians, who went 9-3 as Indianapolis' interim coach this season.

Zimmer was turned down twice last season after interviewing with Tampa Bay, which brought in Rutgers coach Greg Schiano, and Miami (Green Bay offensive coordinator Joe Philbin). The defensive mastermind still wants to be a head coach somewhere, but isn't getting his hopes up.

"Honestly, I don't listen to that stuff anymore," he said in early December. "Honest-to-God's truth. I've had for so many years, have people say, 'This is your year.' Then at the end of the year for about three days I'm totally depressed because I see this guy get a job, that guy get a job, that guy get a job.

"So it's in my best interest not to think about it, talk about it and just try to do the best job I can because I'm like (everybody else), I get disappointed too."

Gruden, who cut his coaching teeth in Arena Football and has revived Cincinnati's offense around Andy Dalton and A.J. Green, got some interest from other teams after last season. He quickly took himself out of the running, but might get more suitors with seven jobs open.

So might McCoy, whose adaptability is unquestioned after he adjusted Denver's offense for Tim Tebow's skill set last season, then made Peyton Manning's transition from the Colts to the Broncos so smooth.

Arians joined the Colts after he was released as Pittsburgh's offensive coordinator. When head coach Chuck Pagano was diagnosed with leukemia, Arians stepped in and guided a team that went 2-14 a year ago into the playoffs.

Bradley has helped Pete Carroll build a physical, sometimes intimidating and always effective defense in Seattle. That style of defense will be attractive to teams such as the Bears, Browns and Eagles who have to deal with cold weather late in the schedule.

Kelly is one of the most intriguing candidates. The NFL is loath to admit it is enamored of anything college teams do, but Kelly's wide-open, speed-based offense has lots of pro franchises salivating.

He has been mentioned for most NFL openings, and that figures to continue.

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AP Pro Football Writer Arnie Stapleton in Denver and Sports Writer Joe Kay in Cincinnati contributed to this story.

___

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Essay: In Pursuit of Answers One May Not Want to Know

I jogged into the Stanford Cancer Clinic with my boyfriend, the youngest people there by two decades. We stood there sweating and holding hands, a jarring sight in the sickly light.

“You are 18, right?” the receptionist asked. Behind me, a woman so gaunt that her cheekbones protruded rolled by in a wheelchair. The oncologist called me alone to the exam room, and I told her the story I had revealed to more doctors than friends: I carry the BRCA1 mutation, which gives you a 98 percent chance of developing cancer.

When my family found out that I might have inherited the mutation from my mother, we took it as a given that I would get tested. Scientists, atheists and lawyers, we are compulsively rational. Yet when I learned I carried the mutation, I felt the cruel weight of a paradox: you can never know whether you want to know until you already do.

At Stanford, I study artificial intelligence, in which math is used to resolve these sorts of dilemmas. My teachers claim that gaining information never hurts. It can be proved mathematically that a robot with more information never makes worse decisions But we are not robots. Our eyes don’t filigree the world with coordinates and probabilities, and they can be blinded by tears.

Still, we, too, display a preference for information. We dislike uncertainty so strongly that we sometimes even prefer bad news. One study of people at risk for a terminal disease found that those who learned they were going to die from it were happier a year later than those who remained uncertain about their fates. Most people have a deep intuition that a life lived cleareyed has inherent value, independent of whether the truth makes you happy. But surely this has limits.

I know there are some things I do not want to know: which other girls my boyfriend finds attractive or the day and manner of my death. The truth can hurt in two ways. It can worsen your options: you can’t live as happily with a significant other after learning of his infidelity. Or it can make you irrational: hearing about terrorists targeting airplanes may lead you to drive instead of fly, though planes remain much safer than cars.

So was I wrong to unwind my double helix?

My risks of getting cancer at 21 are too low for me to do anything differently to better my odds. The knowledge is both irrelevant and painful; it’s obsessed me and made me behave irrationally. I wake from nightmares in which I am dying from cancer. I reread the memoirs of patients with metastatic disease until I can’t see the text through my tears. In my supposedly rational pursuit of knowledge, I’ve gone a little mad.

Despite an excess of information, I pursued more, enrolling in Stanford’s cancer biology class. The professor filled his slides with dark oncological puns, lecturing with the almost robotic detachment I sometimes see in those who work closely with cancer. Maybe I, too, am becoming robotic. I can laugh at the puns, calmly press lecturers on survival rates for breast cancer, marvel at the elegant molecular mechanisms by which it eats us alive. Just as tumors eventually swell too large for their hosts to endure, will all this knowledge grow past what I can handle?

The prospect was too much for my mother, a far tougher woman than I am. When she received a diagnosis of breast cancer, she ordered the doctors to give her chemotherapy as rapidly as possible and recovered completely. But she refused to learn her chances of long-term survival or look at her medical records. I became the first in my family to read them, and when I learned her cancer had been unusually lethal, my father asked me not to tell her.

I cannot shake the thought that this mutation was given to me for a reason. I don’t believe in God. I know my chromosomes divided along a random schism, not a divine skein. But while I reject the theist’s idea of God-granted purpose, I accept the existentialist’s idea of crafting your own. The world may be only sound and fury, but we can choose to see patterns in that chaos, stories in the stars.

So I choose to believe that I have been given this mutation so that I can discover how to overcome it. Like the protagonist in “Flowers for Algernon,” I will be both scientist and patient. Even if this sense of purpose is illusory, it lets me do what I couldn’t before. Fear has sharpened me: I wake at 3 in the morning to refine biological algorithms or to read papers on ovarian cancer.

While I believe this knowledge has made me live better, I am not sure it’s made me happier. True, there was the day I dropped by Stanford’s Relay for Life, a fund-raiser for cancer research, ran farther than I ever had and walked home full of joyful purpose. There was also the night I lost it completely and sobbed for hours in my boyfriend’s arms.

In this oscillation between light and dark, one thing remains constant: I’m no longer so eager to illuminate my fate. Recently, I went to the Web site of 23andMe, a company that will read from your genome your risk of dying from a hundred diseases. I clicked through the testimonials and was unnerved by how similar our reasons were for wanting information. I looked down at my fingertips, tempted: what else in my genome waits to be found?

But then I clicked away. The Bible doesn’t tell us if Eve ate any more apples, but I have had my fill of revelations. I am 21 years old, and I want to be free to live a normal life: fate unbound by double helix, future exploding with possibility. I don’t want to know.

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Some Companies Seek to Wean Employees From Their Smartphones

Resolutions to change behavior are common at this time of year, but they usually involve exercising more or smoking less. Now, some companies are adopting policies aimed at weaning employees from their electronic devices.

Matthew Ryan Williams for The New York Times

Michelle Barry and Mark Jacobsen said they gave serious thought to work-life balance when founding Centric Brand Anthropology.

Atos, an international information technology company, plans to phase out all e-mails among employees by the end of 2013 and rely instead on personal communication. And starting in the new year, employees at Daimler, the German automaker, can have incoming e-mail automatically deleted during vacations so they do not return to a flooded in-box. An automatic message tells the sender which person is temporarily dealing with the employee’s e-mail.

No one is expected to be on call at all hours of the day and night, and “switching off” and observing quiet periods after work is important, “even if you are on a business trip,” said Sabrina Schrimpf, a Daimler spokeswoman, referring to the company’s recently released report, “Balanced! — Reconciling Employees’ Work and Private Lives.”

Disconnecting can be more challenging for business travelers who frequently work across time zones and put in long hours.

And there is a ripple effect, said Leslie A. Perlow, a professor of leadership at Harvard Business School and the author of “Sleeping With Your Smartphone.” “These guys fly in the middle of the night and send e-mails back to colleagues” who wait up, ready to respond.

A study conducted last spring by the Pew Research Center’s Internet and American Life Project found that while mobile phones were valued as a way to stay productive, there were downsides to being available at all times. The nationwide survey of 2,254 adults found that 44 percent of cellphone owners had slept with their phone next to their bed and that 67 percent had experienced “phantom rings,” checking their phone even when it was not ringing or vibrating. Still, the proportion of cellphone owners who said they “could live without it” has gone up, to 37 percent from 29 percent in 2006.

Sam Chapman, chief executive of Empower Public Relations in Chicago, said he used to feel phantom vibrations and frequently read and sent e-mail on his BlackBerry in the middle of the night. He slept poorly, did not feel refreshed in the morning and considered himself addicted. “I wanted to make sure that what happened to me didn’t happen to my employees,” he said.

So Mr. Chapman adopted what he called a BlackBerry blackout policy. He and his staff of about 20 turn off their BlackBerrys from 6 p.m. to 6 a.m. on weekdays and completely on weekends for all work-related use, with rare exceptions. “When I’m well rested, I show up to work ready to go, hit it hard, and then stop and become a human being,” he said.

He maintains that regimen while traveling, and said the policy had increased company productivity.

Professor Perlow agreed that companies could improve their bottom line by encouraging employees to turn off their devices at times. “Being constantly on actually undermines productivity,” she said.

But it is not always easy. When Michelle Barry, Mark Jacobsen and a third partner created Centric Brand Anthropology, a Seattle-based company that advises clients on brand strategy, design and culture management, they gave serious thought to the issue.

“From the beginning, a huge priority for us was to have a good balance between work-life,” said Mr. Jacobsen, Centric’s vice president and creative director. “Yet we have found that very difficult to do while working with large multinational clients,” which often require international travel and constant availability.

Being a start-up compounded those challenges. “Just because you can e-mail at 2 a.m., doesn’t mean it’s a good thing,” he said.

Centric encourages employees to prepare a week before a trip, designating a colleague as backup, informing clients about their travel plans, warning that contact may be sporadic, and trying to avoid deadlines immediately after they return. Employees are also encouraged to take spouses or partners on longer assignments and to build in downtime, said Ms. Barry, the company’s president and chief executive. When traveling herself, she said, “I make a commitment to myself not to stay up all night answering e-mails” and to limit it to about 30 minutes. She jots down after-hours thoughts using pen and paper.

Experts say there is no firm data for how many companies have policies restricting the use of electronic devices outside the office. “The companies I know actively encourage workers to stay connected after hours and on weekends,” said Dennis J. Garritan, a managing partner of the private equity firm Palmer Hill Capital and an adjunct professor at Harvard Business School.

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Cold-Weather Aid Trickles Into Afghan Camps

But camp leaders and Afghan government officials criticized the aid delivery as inadequate to protect residents from the weather and to prevent more deaths.

Last winter, more than 100 children died of the cold in refugee camps around Kabul, with 26 dying in the Charahi Qambar camp alone. That is the same camp where the 3-year-old died on Friday; it was the first confirmed death because of the cold this winter.

The distribution of supplies at the camp, which is home to about 900 families in western Kabul, had been scheduled before news reports about the child’s death, said Mohammad Nader Farhad, a spokesman for the United Nations refugees agency in Kabul.

On less than an hour’s notice, the agency convened a news conference with Afghan government officials at the camp to announce the distribution.

Each family was given warm children’s clothing, blankets, tarps, cooking utensils and soap. Separately, other aid groups, financed by the United Nations and other donors, will be distributing charcoal once every month through February, officials said.

United Nations officials acknowledged, however, that the fuel distributions in themselves were not enough to heat the mud and tarp huts throughout the season, and there were no plans to distribute food to the families. In most cases the men, who are largely war-displaced refugees, are unable to find day labor work in the cold weather, so they are usually unable to buy food.

“We are happy to receive this,” said Tawoos Khan, one of the camp representatives. “But we want food, and we need more fuel; we have all run out of firewood and charcoal.” He and other camp officials said large sacks of charcoal were distributed to every family more than two weeks ago, but supplies had run out.

“It’s supplementary,” said Douglas DiSalvo, a protection officer with the United Nations agency who was at the Charahi Qambar camp. “People have some level of support they can achieve for themselves.”

Mr. Farhad said: “The assistance we are providing, at least it is mitigating the harsh winter these families are experiencing right now.”

The estimated 35,000 people in 50 camps in and around Kabul are not classified as refugees from an international legal point of view, but as “internally displaced persons.” Since the United Nations agency’s mandate is to primarily help refugees — defined as those who flee across international borders — has not provided support to the Kabul camps in the past. That changed late last winter when the Afghan government asked it to do so in response to the emergency conditions that were taking so many lives.

This year, the agency is spearheading the effort to supply the camps, along with the Afghan government’s Ministry of Refugees and Repatriation, other United Nations agencies, and several aid groups, in order to prevent a recurrence of the crisis last winter.

Ministry officials, however, criticized the effort on Sunday — even though they were among the sponsors. “We have never claimed that we provided the internally displaced Afghans with sufficient food items, clothing or means of heat. We admit this. What the internally displaced people have received so far is not adequate at all,” said Islamuddin Jurat, a spokesman for the Ministry of Refugees and Repatriation.

“Before the arrival of harsh winter, we asked the international community and donor countries to help the internally displaced people, and luckily today U.N.H.C.R. provided them with some humanitarian assistance, but again we believe it’s not sufficient at all,” he added.

Both aid officials and the Afghan government have said they are wary about providing too much aid for fear that it would encourage more people to leave their homes. That fear has also been why the Afghan government has refused to allow permanent buildings to be erected in the camps, many of which are five or more years old.

“The illegal nature of these squatter settlements poses an obstacle to more lasting interventions and improvements,” said Mr. Farhad of the United Nations refugees agency. “Coordination this year has been very strong, and we expect that the multiagency effort will help us to detect and respond to particular problem areas as the winter progresses.”

Little is provided in the way of food aid. The only food aid in the Charahi Qambar camp is a hot lunch program for 750 students at a tented school run by Aschiana, an Afghan aid group.

The United Nations High Commissioner for Refugees is providing the cold-weather packages to 40,000 families, 5,000 of them in the Kabul camps, at a cost of $6 million. Other Kabul camps will receive distributions in the next two days, Mr. Farhad said.

The packages, which cost about $150 each, include two tarpaulins, three blankets, six bars of soap, a cooking utensils set, and 26 items of clothing ranging from jackets and sweaters to socks and hats, mostly for children.

Taj Mohammad, the father of the child who died, Janan, said Sunday that he believed that his son might have survived if the cold-weather kit had arrived earlier. But like many of the refugees, he was critical of its contents, which he said were hard to sell in exchange for food.

“I didn’t know a package costs $150,” he said. “It’s a lot of money. It would have been much better if they had given us the money, and we would have spent it on what we need the most.”

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Pagano makes grand entrance in return to sideline

INDIANAPOLIS (AP) — Colts coach Chuck Pagano received a warm welcome in his return to the sideline Sunday, then watched his team score on its first drive.

With drums playing and the Colts cheerleaders lining up both sides of an inflatable horse, Pagano walked to his usual spot on the sideline, put on his headphones and hugged his assistants. It was his first appearance on the sideline since he began treatment for leukemia Sept. 26.

Pagano's Colts took the opening kickoff and drove 75 yards to Andrew Luck's touchdown pass to Coby Fleener. The coach threw his hands in the air and wore a huge smile after Fleener caught the ball to end a 13-play drive.

Some fans brought signs to show their support for Pagano, and the team welcomed him back with a 1-minute video just before kickoff. Afterward, an emotional Pagano waved to the crowd.

During pregame warm-ups, Pagano hugged his wife and was followed by a large group of cameras. He shook hands with Texans defensive coordinator Wade Phillips and chatted with Colts GM Ryan Grigson.

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Well: Exercise and the Ever-Smarter Human Brain

Anyone whose resolve to exercise in 2013 is a bit shaky might want to consider an emerging scientific view of human evolution. It suggests that we are clever today in part because a million years ago, we could outrun and outwalk most other mammals over long distances. Our brains were shaped and sharpened by movement, the idea goes, and we continue to require regular physical activity in order for our brains to function optimally.

Phys Ed

Gretchen Reynolds on the science of fitness.

The role of physical endurance in shaping humankind has intrigued anthropologists and gripped the popular imagination for some time. In 2004, the evolutionary biologists Daniel E. Lieberman of Harvard and Dennis M. Bramble of the University of Utah published a seminal article in the journal Nature titled “Endurance Running and the Evolution of Homo,” in which they posited that our bipedal ancestors survived by becoming endurance athletes, able to bring down swifter prey through sheer doggedness, jogging and plodding along behind them until the animals dropped.

Endurance produced meals, which provided energy for mating, which meant that adept early joggers passed along their genes. In this way, natural selection drove early humans to become even more athletic, Dr. Lieberman and other scientists have written, their bodies developing longer legs, shorter toes, less hair and complicated inner-ear mechanisms to maintain balance and stability during upright ambulation. Movement shaped the human body.

But simultaneously, in a development that until recently many scientists viewed as unrelated, humans were becoming smarter. Their brains were increasing rapidly in size.

Today, humans have a brain that is about three times larger than would be expected, anthropologists say, given our species’ body size in comparison with that of other mammals.

To explain those outsized brains, evolutionary scientists have pointed to such occurrences as meat eating and, perhaps most determinatively, our early ancestors’ need for social interaction. Early humans had to plan and execute hunts as a group, which required complicated thinking patterns and, it’s been thought, rewarded the social and brainy with evolutionary success. According to that hypothesis, the evolution of the brain was driven by the need to think.

But now some scientists are suggesting that physical activity also played a critical role in making our brains larger.

To reach that conclusion, anthropologists began by looking at existing data about brain size and endurance capacity in a variety of mammals, including dogs, guinea pigs, foxes, mice, wolves, rats, civet cats, antelope, mongooses, goats, sheep and elands. They found a notable pattern. Species like dogs and rats that had a high innate endurance capacity, which presumably had evolved over millenniums, also had large brain volumes relative to their body size.

The researchers also looked at recent experiments in which mice and rats were systematically bred to be marathon runners. Lab animals that willingly put in the most miles on running wheels were interbred, resulting in the creation of a line of lab animals that excelled at running.

Interestingly, after multiple generations, these animals began to develop innately high levels of substances that promote tissue growth and health, including a protein called brain-derived neurotrophic factor, or BDNF. These substances are important for endurance performance. They also are known to drive brain growth.

What all of this means, says David A. Raichlen, an anthropologist at the University of Arizona and an author of a new article about the evolution of human brains appearing in the January issue of Proceedings of the Royal Society Biology, is that physical activity may have helped to make early humans smarter.

“We think that what happened” in our early hunter-gatherer ancestors, he says, is that the more athletic and active survived and, as with the lab mice, passed along physiological characteristics that improved their endurance, including elevated levels of BDNF. Eventually, these early athletes had enough BDNF coursing through their bodies that some could migrate from the muscles to the brain, where it nudged the growth of brain tissue.

Those particular early humans then applied their growing ability to think and reason toward better tracking prey, becoming the best-fed and most successful from an evolutionary standpoint. Being in motion made them smarter, and being smarter now allowed them to move more efficiently.

And out of all of this came, eventually, an ability to understand higher math and invent iPads. But that was some time later.

The broad point of this new notion is that if physical activity helped to mold the structure of our brains, then it most likely remains essential to brain health today, says John D. Polk, an associate professor of anthropology at the University of Illinois at Urbana-Champaign, and co-author, with Dr. Raichlen, of the new article.

And there is scientific support for that idea. Recent studies have shown, he says, that “regular exercise, even walking,” leads to more robust mental abilities, “beginning in childhood and continuing into old age.”

Of course, the hypothesis that jogging after prey helped to drive human brain evolution is just a hypothesis, Dr. Raichlen says, and almost unprovable.

But it is compelling, says Harvard’s Dr. Lieberman, who has worked with the authors of the new article. “I fundamentally agree that there is a deep evolutionary basis for the relationship between a healthy body and a healthy mind,” he says, a relationship that makes the term “jogging your memory” more literal than most of us might have expected and provides a powerful incentive to be active in 2013.

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Negotiations Break Down on Debt Agreement

Pete Souza/The White House, via NBC

President Obama spoke with David Gregory of NBC's "Meet The Press" in the Blue Room of the White House during an interview taped on Saturday.

WASHINGTON — Negotiations to reach a last-ditch agreement to head off large tax increases and sweeping spending cuts in the new year broke down, at least temporarily, on Sunday after Republicans requested that a deal include a new way of calculating inflation that would lower payments to beneficiaries programs like Social Security and slow their growth.

A Senate Democratic aide familiar with the talks said the negotiations could resume, and Republican officials hinted that their position was not set in stone. But for now, the Democratic aide said, talks have stopped.

Senator Mitch McConnell, the Republican leader, went to the Senate floor a little after 2 p.m. to say that Republicans had made their last offer at 7:10 the night before and had yet to receive a reply.

“I’m concerned about the lack of urgency. I think we all know we’re running out of time,” Mr. McConnell said.

Senator Harry Reid, the majority leader, responded that “at this stage, we’re not able to make a counter offer.” He said that Mr. McConnell had negotiated in good faith but that “we’re apart on some pretty big issues.”

Mr. McConnell said he had made an emergency call to Vice President Joseph R. Biden Jr. to get the talks started again.

Talks foundered after Republicans dug in in an effort to get the largest deficit reduction deal in the time remaining, according to numerous Republican and Democratic officials familiar with the negotiations. Republicans told Democrats that they were willing to put off scheduled cuts in payments to health care providers who treat Medicare patients but that they wanted spending cuts elsewhere.

But it was the inflation calculation that forced Democrats from the negotiating table. President Obama has said that in a “grand bargain” on deficit reduction, he would go along with the change, which would slow the growth of programs whose outlays rise with consumer prices, and would raise more revenue by pushing people into higher tax brackets.

Democrats said that Mr. Obama and Congressional Democrats would accept that change, called “chained C.P.I.,” only as part of a larger deal that included locking in well more than $1 trillion in revenue over 10 years, along with other Republican concessions. Democrats fear that any such concessions now would only increase demands for addition concessions in the coming weeks, when talks resume on a “grand bargain” to reduce the deficit.

They point to the $1 trillion in spending cuts agreed to last year in the Budget Control Act. Democrats say those should be included in a $4 trillion “grand bargain” package, but Republicans say those cuts should not be part of future negotiations. Republicans would likely do the same if Democrats agree now to concessions on the inflation calculation, Democratic aides said Sunday.

Mr. Reid made clear that Democrats did not intend to include Social Security in any stopgap package. Doing so would make it hard for him to round up votes from his own party, and he has resisted touching Social Security.

“We’re not going to have any Social Security cuts,” Mr. Reid said on the floor.

The breakdown came after Mr. Obama appeared on the NBC program “Meet the Press” on Sunday and implored Congress to act.

“We have been talking to the Republicans ever since the election was over,” Mr. Obama said in the interview, which was taped on Saturday. “They have had trouble saying yes to a number of repeated offers. Yesterday I had another meeting with the leadership, and I suggested to them if they can’t do a comprehensive package of smart deficit reductions, let’s at minimum make sure that people’s taxes don’t go up and that two million people don’t lose their unemployment insurance.”

“And I was modestly optimistic yesterday, but we don’t yet see an agreement,” Mr. Obama said. “And now the pressure’s on Congress to produce.”

Unless Congress acts by midnight Monday, a broad set of tax increases and federal spending cuts will be automatically imposed on Jan. 1, affecting virtually every taxpayer and government program. The spending cuts were put in place earlier this year as draconian incentives that would force the president and lawmakers to confront the nation’s growing debt. Now, lawmakers are trying to keep them from happening, though it seemed likely that the cuts, known as sequestration, would be left for the next Congress, to be sworn in this week.

Both sides worry that the confrontational tone that the president took on “Meet the Press” was not helpful.

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