BP fined, charged in oil spill that showed 'profit over prudence'

BP will pay a record U.S. fine to settle criminal claims arising from the 2010 Deepwater Horizon oil spill in the Gulf of Mexico, a Department of Justice official said Thursday.

By Michael Muskal and Ronald D. White

November 15, 2012, 1:28 p.m.

Oil giant BP and three of its employees were indicted on criminal charges including manslaughter and obstruction of Congress on top of a record $4-billion fine that the company will pay the government for its role in the oil spill disaster that scarred the Gulf of Mexico, officials announced Thursday.

Led by Atty. Gen. Eric H. Holder Jr., officials announced the indictments in a televised news conference from New Orleans, where the grand jury has been investigating the 2010 explosion of the Deepwater Horizon oil rig off the Louisiana coast. Eleven people died in the explosion.

The announcement of the charges against BP employees came on the same day officials announced that BP had agreed to an unprecedented settlement involving a guilty plea to criminal charges.

';



jQuery(document).ready(function(){
jQuery('#story-body-text').append(muskalsig);
});

Hi-res photos: Gulf oil spill

Drill rigs wind up operations in Arctic Alaska seas

BP guilty of criminal misconduct, negligence in gulf oil spill

“The $4 billion in penalties and fines is the single largest criminal resolution in the history of the United States and constitutes a major achievement toward fulfilling a promise that the Justice Department made nearly two years ago to respond to the consequences of this epic environmental disaster and seek justice on behalf of its victims,” Holder said.

 PHOTOS: Deepwater Horizon disaster in hi-res

In addition, BP agreed to pay more than $525 million in civil penalties to satisfy complaints by the Securities and Exchange Commission. That brings the total settlement cost to more than $4.5 billion – not including the billions the company has already paid to settle civil claims from residents, fishermen and businesses harmed by the spill.

The settlement of the criminal charges by the company still leaves BP open to civil cases, officials said. The federal government is also seeking civil penalties in the billions of dollars against the company, arguing that BP was grossly negligent during the oil spill, which poured about 4 million barrels of oil from the underwater Macondo well into the gulf waters. A trial is scheduled in February and BP, in a statement released Thursday, said it will continue to vigorously defend itself from civil actions.

Federal officials blamed BP’s culture of profit for the spill.

“The explosion of the rig was a disaster that resulted from BP’s culture of privileging profit over prudence,” said Assistant Atty. Gen. Lanny A. Breuer at the news conference. “We hope that BP's acknowledgment of its misconduct – through its agreement to plead guilty to 11 counts of felony manslaughter – brings some measure of justice to the family members of the people who died on board the rig.”

In all, the company said it agreed to enter guilty pleas to 14 charges, including the eleven counts of manslaughter. But the government went further, charging individuals as well.

“Make no mistake,” Breuer said. “While the company is guilty, individuals committed these crimes.”

Two BP employees, Robert Kaluza and Donald Vidrine, who were described by Holder as the two highest-ranking BP supervisors on board the Deepwater Horizon when it exploded, were charged with manslaughter and other counts.

The 23-count indictment “charges these two BP well site leaders with negligence, and gross-negligence, on the evening of April 20, 2010. In the face of glaring red flags indicating that the well was not secure, both men allegedly failed to take appropriate action to prevent the blowout,” Breuer said.

David Rainey, who was BP's vice president of exploration for the Gulf of Mexico, was indicted on charges of obstruction of Congress and false statements, Holder said. Rainey, a former BP executive, served as a deputy incident commander and BP’s second-highest ranking representative at Unified Command during the spill response, Holder said.

Rainey, Breuer said, is charged with “obstructing a congressional investigation and making false statements to law enforcement officials. The indictment alleges that Rainey, on behalf of BP, intentionally underestimated the amount of oil flowing" from the Macondo well, which was spilling oil into the gulf. “Rainey allegedly cherry-picked pages from documents, withheld other documents altogether and lied to Congress and others in order to make the spill appear less catastrophic than it was,” Breuer said.

Rainey's lawyer told the Associated Press that his client did “absolutely nothing wrong.” And attorneys for the two rig workers accused the Justice Department of making scapegoats out of them.

“Bob was not an executive or high-level BP official. He was a dedicated rig worker who mourns his fallen co-workers every day,” Kaluza attorneys Shaun Clarke and David Gerger said in a statement. “No one should take any satisfaction in this indictment of an innocent man. This is not justice.”

Chris Jones, the brother of one of the rig workers killed in the disaster, said the settlement renewed his grief and anger over the loss of his younger sibling, Gordon.

“The fact that BP is finally admitting that it is responsible is not shocking; the amount of money it is paying in fines is not shocking,” said Jones, a litigation attorney in Baton Rouge, La. “What is shocking is that it has been ... years since this happened and not once has a representative of BP said to us, ‘I’m sorry for your loss.’ It’s par for the course.”

“BP is simply going to sign a check for billions of dollars, then continue to do business in U.S. waters and make money for its shareholders,” he said. “But Gordon wasn’t able to live a day after April 2010.”

British oil giant BP is more than prepared for the $4.5 billion in settlement charges it agreed to Thursday, analysts said.

In the third quarter alone, BP raked in sales of more than $93 billion and had a net profit of more than $5.2 billion. That result showed that “BP has made the most remarkable comeback from the most costly industrial accident in history,” said Fadel Gheit, senior energy analyst at Oppenheimer and Co., in a note to investors.

Read More..

Maker of Airport Body Scanners Suspected of Falsifying Software Tests

A company that supplies controversial passenger-screening machines for U.S. airports is under suspicion for possibly manipulating tests on privacy software designed to prevent the machines from producing graphic body images.

The Transportation Security Administration sent a letter Nov. 9 to the parent company of Rapiscan, the maker of backscatter machines, requesting information about the testing of the software to determine if there was malfeasance.

The machines use backscatter radiation to detect objects concealed beneath clothes. But after complaints from privacy groups and others that the machines produce graphic images of passenger’s bodies, the government ordered the machines be outfitted with privacy software by June to replace the invasive images with more generic ones that simply show a chalk-like outline of a body.

While L-3 Communications, the maker of another brand of scanners used in airports, successfully developed the privacy software for its machines, Rapiscan was having problems with its software, according to Bloomberg.

The testing of the software, done earlier this year to determine if it met privacy requirements, was conducted by a third party, so it’s not immediately clear how Rapiscan might have manipulated the tests.

At a hearing on Thursday before the House Transportation Security Subcommittee, Chairman Mike Rogers (R-Alabama) asked John Sanders, assistant administrator for TSA’s office of security capabilities, this very question. Sanders replied obliquely that “before [a test] gets underway, we might believe the system is on one configuration when it’s not in that configuration.”

Sanders said that TSA has no evidence yet that the vendor did manipulate the tests, but is looking into the matter.

“At this point we don’t know what has occurred,” Sanders said. “We are in contact with the vendor. We are working with them to get to the bottom of it.”

The vendor has denied any wrongdoing.

“At no time did Rapiscan falsify test data or any information related to this technology or the test,” Peter Kant, an executive vice president with the company, told Bloomberg.

DHS has spent about $90 million replacing traditional magnetometers with the controversial body-scanning machines.

Rapiscan has a contract to produce 500 machines for the TSA at a cost of about $180,000 each. The company could be fined and barred from participating in government contracts, or employees could face prison terms if it is found to have defrauded the government.

It’s not the first time Rapiscan has been at the center of testing problems with the machines. The company previously had problems with a “calculation error” in safety tests that showed the machines were emitting radiation levels that were 10 times higher than expected.

It turned out the company’s technicians weren’t following protocol in conducting the tests. They were supposed to test radiation levels of machines in the field 10 times in a row, and then divide the results by 10 to produce an average radiation measurement. But the testers failed to divide the results by 10, producing false numbers.

A recent Wired.com three-part series examined the constitutionality, effectiveness and health concerns of the scanners, which were never tested on mice or other biological equivalents to determine the scanners’ health risks to humans.

Read More..

ABC Adapting Disney Theme-Park Ride for “Big Thunder Mountain” Pilot

LOS ANGELES (TheWrap.com) – ABC found ratings success by adapting Disney‘s finest fairy tales into the one-hour drama series “Once Upon a Time,” so it’s not surprising that the network has turned to a theme-park ride from its parent company for inspiration as well.

Popular roller coaster Big Thunder Mountain Railroad is being adapted for a television pilot by the Disney-owned network, an individual with knowledge of the situation told TheWrap.

Chris Morgan (“Wanted,” “Fast Five”) will co-write the story with “Ice Age: Continental Drift’s” Jason Fuchs, who will write the teleplay. ABC has ordered a script from ABC Studios, the individual said.

No word on what the show will have in common with the ride, but if it sticks with the theme presented to visitors at parks in California, Florida, Paris and Tokyo, it should have something to do with a mining town being destroyed by a natural disaster after settlers desecrate sacred Native American land.

Two other film projects have been developed based on Disney rides, “Pirates of the Caribbean” and 2003′s not-equally-successful “The Haunted Mansion.”

Morgan is represented by ICM Partners and McKuin Frankel, while Fuchs is repped by WME and Brookside and Bloom Hergott.

The Hollywood Reporter first broke the news on “Big Thunder Mountain.”

TV News Headlines – Yahoo! News

Read More..

I Was Misinformed: The Time She Tried Viagra

I have noticed, in the bragging-rights department, that “he doesn’t need Viagra” has become the female equivalent of the male “and, I swear, she’s a real blonde.” Personally, I do not care a bit. To me, anything that keeps you happy and in the game is a good thing.

But then, I am proud to say, I was among the early, and from what I gather, rare female users.

It happened when the drug was introduced around 1998. I was 50, but after chemotherapy for breast cancer — and later, advanced ovarian cancer — I was, hormonally speaking, pretty much running on fumes. Whether this had diminished my sex drive I did not yet know. One may have Zorba-esque impulses when a cancer diagnosis first comes in; but a treatment that leaves you bald, moon-faced and exhausted knocks that out of your system pretty fast.

But by 1998, the cancer was gone, my hair was back and I was ready to get back in the game. I was talking to an endocrinologist when I brought up Viagra. This was not to deal with the age-related physical changes I knew it would not address, it was more along the feminist lines of equal pay for equal work: if men have this new sex drug, I want this new sex drug.

“I know it’s supposed to work by increasing blood flow,” I told the doctor, “But if that’s true for men, shouldn’t it be true for women, too?”

“You’re the third woman who asked me that this week,” he said.

He wrote me a prescription. I was not seeing anyone, so I understood that I would have to do both parts myself, but that was fine. I have a low drug threshold and figured it might be best the first time to fly solo. My memory of the directions are hazy: I think there was a warning that one might have a facial flush or headaches or drop dead of a heart attack; that you were to take a pill at least an hour before you planned to get lucky, and, as zero hour approached, you were supposed to help things along by thinking beautiful thoughts, kind of like Peter Pan teaching Wendy and the boys how to fly.

But you know how it is: It’s hard to think beautiful thoughts when you’re wondering, “Is it happening? Do I feel anything? Woof, woof? Hello, sailor? Naaah.”

After about an hour, however, I was aware of a dramatic change. I had developed a red flush on my face; I was a hot tomato, though not the kind I had planned. I had also developed a horrible headache. The sex pill had turned into a bad joke: Not now, honey, I have a headache.

I put a cold cloth on my head and went to sleep. But here’s where it got good: When I slept, I dreamed; one of those extraordinary, sensual, swimming in silk sort of things. I woke up dazed and glowing with just one thought: I gotta get this baby out on the highway and see what it can do.

A few months later I am fixed up with a guy, and after a time he is, under the Seinfeldian definition of human relations (Saturday night date assumed) my official boyfriend. He is middle aged, in good health. How to describe our romantic life with the delicacy a family publication requires? Perhaps a line from “Veronika, der Lenz ist da” (“Veronica, Spring Is Here”), a song popularized by the German group the Comedian Harmonists: “Veronika, der Spargel Wächst” (“Veronica, the asparagus are blooming”). On the other hand, sometimes not. And so, one day, I put it out there in the manner of sport:

“Want to drop some Viagra?” I say.

Here we go again, falling into what I am beginning to think is an inevitable pattern: lying there like a lox, or two loxes, waiting for the train to pull into the station. (Yes, I know it’s a mixed metaphor, but at least I didn’t bring in the asparagus.) So there we are, waiting. And then, suddenly, spring comes to Suffolk County. It’s such a presence. I’m wondering if I should ask it if it hit traffic on the L.I.E. We sit there staring.

My reaction is less impressive. I don’t get a headache this time. And romantically, things are more so, but not so much that I feel compelled to try the little blue pills again.

Onward roll the years. I have a new man in my life, who is 63. He does have health problems, for which his doctor prescribes an E.D. drug. I no longer have any interest in them. My curiosity has been satisfied. Plus I am deeply in love, an aphrodisiac yet to be encapsulated in pharmaceuticals.

We take a vacation in mountain Mexico. We pop into a drugstore to pick up sunscreen and spot the whole gang, Cialis, Viagra, Levitra, on a shelf at the checkout counter. No prescription needed in Mexico, the clerk says. We buy all three drugs and return to the hotel. I try some, he tries some. In retrospect, given the altitude and his health, we are lucky we did not kill him. I came across an old photo the other day. He is on the bed, the drugs in their boxes lined up a in a semi-circle around him. He looks a bit dazed and his nose is red.

Looking at the picture, I wonder if he had a cold.

Then I remember: the flush, the damn flush. If I had kids, I suppose I would have to lie about it.

Read More..

Computer Problems at United Delay Travelers

NEW YORK (AP) — A computer outage at United Airlines delayed thousands of travelers on Thursday and embarrassed the airline at the time when it's trying to recover from glitches earlier this year.

The two-hour outage held up morning flights around the globe. From Los Angeles to London, Boston to San Francisco, frustrated fliers tweeted snarky remarks about the glitch. It was United's third major computer mishap this year.

"Does anyone have a Radio Shack computer or abacus to help United get their system fixed?," tweeted Lewis Franck, a motorsports writer flying from Newark, N.J. to Miami on Thursday to cover the last race of the NASCAR season.

In a subsequent phone call with The Associated Press, Franck added: "Why is there a total system failure on a beautiful day? What happened to the backup and the backup to backup?"

United said the technology problem was fixed by 10:30 a.m. EST. But early morning delays can easily ripple throughout an airline's network for the rest of the day even after the underlying cause is fixed. That's because once a plane is late for one flight it can be hard to make up for lost time.

United was not immediately able to say how many flights were delayed on Thursday. Spokesman Rahsaan Johnson said few if any flights were canceled.

The problem was that dispatchers couldn't send flight information to about half of the United's mainline flights. Johnson confirmed that the problem affected planes that came from United, which merged with Continental in 2010. Planes that came from Continental, and regional flights on United Express, were not affected. All of them together run some 5,500 flights a day.

United's biggest computer problem occurred in March, when its long-planned transition to a single computer system for passenger information caused delays and problems with frequent flier account balances. In August, 580 flights were delayed and its website was shut down for two hours because of a problem with a piece of computer hardware.

Johnson said the problems on Thursday were not related to integrating the computer systems of the two airlines. But even if Thursday's dispatching issue is separate from its earlier problems, the still leaves passengers frustrated.

Michael Silverstein, who works in finance, was supposed to be on a 6:01 a.m. flight from Los Angeles to San Francisco. The computer outage had already caused him to miss one meeting. Worried about missing another, he walked off the plane and bought a $195 last-second ticket on a Southwest Airlines flight to Oakland, Calif.

"I'm frustrated because I'm missing a meeting that I thought I had plenty of time for," Silverstein said.

CEO Jeff Smisek acknowledged on Oct. 25 that some customers avoided United over the summer because of its computer problems. He said the airline had fixed those problems by improving software and adding more spare planes to its system, among other moves.

"We expect to earn back those customers that took a detour and we expect to attract new customers as well," he said at the time.

Thursday's problems were exactly what United did not need, said airline and travel industry analyst Henry H. Harteveldt of Atmosphere Research Group. "This event shows an unacceptable lack of planning at United," he said.

"This merger has been an outright disaster on almost every count. United must make some changes in its executive leadership, starting with the CEO" and including its chief information officer if it wants to restore confidence among passengers, he said.

Shares of United Continental Holdings Inc. fell 20 cents to $19.78 on a day when shares of other big airlines rose.

____

Freed reported from Minneapolis. Airlines Writer Scott Mayerowitz contributed to this report.

____

Read More..

Obama pressures House Republicans to pass tax breaks

WASHINGTON -- President Obama used his post-election news conference to pressure House Republicans to extend expiring tax rates for middle-class Americans – avoiding massive tax hikes in the New Year that he said could put a damper on the holiday shopping season.

Halting class tax hikes for 98% of Americans would ease the threat of the coming "fiscal cliff" – the year-end confluence of automatic tax hikes and spending cuts that Washington is now desperately trying to stop.

“We could get that done by next week,” Obama said.

Obama warned Republicans not to hold the middle-class tax cuts “hostage” as the debate continues over taxes for upper-income Americans. If both sides resist compromise, he said, “we can all imagine a scenario when we go off the fiscal cliff.”

Congressional Republicans have dismissed the president’s approach as incremental as they press for a comprehensive bill that would keep tax rates low -- or lower -- for all Americans, including those who earn incomes above $200,000, or $250,000 for couples, who Obama has said should pay more.

House Speaker John A. Boehner (R-Ohio) has made an opening offer that would extend all of the expiring tax rates for another year while Congress and the White House work on a broader overhaul of the tax code, with the goal of closing loopholes and using the revenue to lower all tax rates.

The White House has been cool to Boehner’s offer even as the president said Wednesday he remains open to new ideas.

“I don’t expect the Republicans to simply adopt my budget,” the president said. “When it comes to the top 2%, what I’m not going to do is extend further a tax cut for folks who don’t need it.”

Obama has invited congressional leaders to the White House on Friday to begin talks on the looming budget battle.

One idea circulating is to maintain the existing tax rates, as Republicans prefer, but capping deductions for upper-income households as a way to produce more revenue.

As talks begin, the White House appears to have begun a strategy that aims to isolate House Republicans as standing in the way of the tax break for the middle class. The Senate has already passed a bill that would extend the tax rates for the middle class. Without action, tax rates would rise on most Americans on Jan. 1, a tax hike that would ripple through the economy.

At the same time, massive spending cuts are scheduled to begin – the result of a previous deficit-reduction bill that both sides had previously agreed to, but now want to amend. Halting those cuts are also part of the talks.

Economists say the combined fiscal contraction of tax hikes and spending cuts could send the economy into another recession.

Follow Politics Now on Twitter and Facebook

lisa.mascaro@latimes.com

twitter.com/LisaMascaroinDC

Read More..

BMW Builds the Ultimate Sledding Machine for the U.S. Bobsled Team

The people behind the ultimate driving machine are building the ultimate sledding machine.

BMW of North America has invested more than a year developing a “truly improved and innovative” prototype two-man bobsled for the U.S. Bobsled and Skeleton Foundation. The goal is to have a race-ready ride finished in time for the 2014 Winter Games in Soichi, one that team officials said might bring the U.S. squad its first two-man gold since 1936.

“I happen to think these are going to be very good,” Darrin Steele, CEO of the U.S. bobsledding foundation, told the Associated Press.

This isn’t the first time the U.S. bobsled team has sought help from those who know a thing or two about going fast on four wheels. Earlier this year, NASCAR legend Jeff Bodine and racecar builder Bob Cunero announced the Bo-Dyn Bobsled Project in partnership with the federation. Cunero’s shop, Chassis Dynamics, has built six competition sleds since 2002.

The BMW project, announced today, began when the federation asked BMW to help bridge a “technology gap” with more competitive squads, primarily in Europe. BMW is a U.S. Olympic sponsor through 2016, and the foundation hoped to tap its expertise building fast, sharp-handling cars — hello, 1 Series M — and re-engineer the sled it has used for more than 20 years.

BMW approached the project much like it would approach developing a new car. Although the design and construction of competition bobsleds is governed by international rules — and, frankly, bobsleds all look about the same to the casual observer — both BMW and the federation say the new sled is “distinctly recognizable.”

BMW approached the project much like it would the design of a new car. After tapping “the deep empirical knowledge” of the federation and studying existing designs, BMW hit the design studio, then the wind tunnel. No one is saying much about what the sled looks like or how it performs, but Laurenz Schaffer, president of BMW Group DesignworksUSA, said the company drew from its expertise in lightweight materials, aerodynamics and chassis dynamics to build “a truly improved and innovative product.”

The sled has made some shakedown runs at the Olympic track in Park City, Utah, with reigning Olympic and world champion Steven Holcomb among those putting it to the test. BMW and the federation plan to continue refining the design through the next year, but there’s been no word on when the sled might see competition.

“We can’t wait to see this finished sled on the ice,” said Ludwig Willisch, president and CEO of BMW North America.

Neither can we.

Read More..

Judge tosses anti-paparazzi counts in Bieber case

LOS ANGELES (AP) — A law aimed at combating reckless driving by paparazzi is overly broad and should not be used against the first photographer charged under its provisions, a judge ruled Wednesday.

Superior Court Judge Thomas Rubinson dismissed counts filed under the law against Paul Raef, who was charged in July with being involved in a high-speed pursuit of Justin Bieber.

The judge cited numerous problems with the 2010 statute, saying it was aimed at newsgathering activities protected by the First Amendment, and lawmakers should have simply increased the penalties for reckless driving rather than targeting celebrity photographers.

Attorneys for Raef argued the law was unconstitutional and wasn’t meant to protect the public.

“It’s about protecting celebrities,” attorney Brad Kasierman said. “This discrimination sets a dangerous precedent.”

Prosecutors argued that the law, which seeks to punish those who drive dangerously in pursuit of photos for commercial gain, could apply to people in other professions, not just the media.

“The focus is not the photo. The focus is on the driving,” Assistant City Attorney Ann Rosenthal argued.

While the media is granted freedom under the First Amendment, its latitude to gather news is not unlimited, Rosenthal argued.

“This activity has been found to be particularly dangerous,” she said of chases involving paparazzi.

Raef still faces traditional reckless driving counts and has not yet entered a plea,

Prosecutors claim he chased Bieber at more than 80 mph and forced other motorists to avoid collisions while trying to get shots of the teen heartthrob on a Los Angeles freeway.

The chase prompted several 911 calls from scared motorists and led to Bieber being pulled over.

Rubinson cited hypothetical examples in which wedding photographers or even those rushing to do a portrait shoot with a celebrity could face additional penalties if charged under the new statute.

Rosenthal also argued that the judge should look at factors specific to Raef’s case, not hypothetical scenarios.

Kaiserman said the ruling only applies to Raef’s case but could lead to the law being struck down if prosecutors appeal.

___

Anthony McCartney can be reached at http://twitter.com/mccartneyAP

Entertainment News Headlines – Yahoo! News

Read More..

Well: How Many Calories Do We Really Eat at Thanksgiving?

A reader writing in to The Times’s Thanksgiving Help Line asked this question: “What is the average number of calories a person consumes at Thanksgiving dinner?”

The commonly cited statistic is that the average American will consume more than 4,500 calories on Thanksgiving Day alone. That’s according to the Calorie Control Council, which represents the people who bring you diet foods. After thinking about how much 4,500 calories really is, I was skeptical of the claim. I decided to create a gluttonous virtual Thanksgiving feast of traditional foods and count the calories along the way (with the help of several online calorie counters).

To read the rest of my answer (which includes sweet potato casserole with marshmallows and buttery rolls), go to the Thanksgiving Help Line.

Read More..

Samuel Adams Brewer Counsels Small Businesses

Gretchen Ertl for The New York Times

Jim Koch, who started brewing Samuel Adams Boston Lager at his house in 1984, and Carlene O'Garro, who runs a cake business, participate in a program in which big businesses help small ones.

Carlene O’Garro’s cake business was barely a month old when she arrived at the Samuel Adams brewery in South Boston recently to meet with business counselors, but she brought with her an agenda that hinted at outsize ambitions.

Ms. O’Garro bakes nondairy cheesecakes that she was selling at a handful of grocery stores, including two Whole Foods outlets, in the Boston area. She hoped to learn how to expand the business and distribute the cakes nationally. “I know Jim is all over the place,” she said, “and I want to be like that.”

Jim is Jim Koch, the founder of the Boston Beer Company and one of 36 advisers who spent an evening last August “speed coaching” fledgling food, beverage and hospitality businesses. In 20-minute sessions, some 95 bakers, brewers and restaurant owners peppered the coaches — Boston Beer employees and consultants who included lawyers, accountants and small-business counselors — with questions about both basic day-to-day issues and more strategic concerns.

Speed coaching is one element of “Brewing the American Dream,” a program Boston Beer established with a microlender, Accion, to help small businesses. Mr. Koch, who started brewing Samuel Adams Boston Lager at his house in 1984, remains central to these efforts even as he presides over a company with a market capitalization of $1.4 billion and annual revenue of more than $500 million. He said he had not forgotten his early days, when he struggled to find capital, get his beer into distribution networks and expand.

In six sessions that August evening, Mr. Koch spoke with perhaps a dozen entrepreneurs and then stayed another hour to visit with six or eight more. This year, Boston Beer and Accion are staging 12 speed-coaching events in 11 cities, and Mr. Koch expects to attend about half of them.

Big businesses reaching out to help smaller businesses has come into vogue since the recession. In 2009, Goldman Sachs introduced its 10,000 Small Businesses campaign. Starbucks raises money from customer donations to finance small-business loans. American Express encourages consumers to shop locally on “Small Business Saturday” after Thanksgiving. The New York Stock Exchange links small vendors with large corporations and finances loans through Accion. And several corporations have run contests — Wal-Mart, Chase Bank and Staples have furnished winning small companies with opportunities for retail distribution, capital and office equipment.

It is the latest example of what is known in corporate circles as cause marketing — hitching a brand to a social issue. “How you improve the American economy and create jobs is on everybody’s minds these days,” said David Hessekiel, founder and president of Cause Marketing Forum. “Companies know that it’s on the minds of their consumers, and they want to be seen as part of the solution, not as the enemy.”

That has been a particular concern for chains like Wal-Mart and Starbucks, given their longstanding reputations for forcing local competitors to close. Helping small businesses, Mr. Hessekiel said, “helps them deal with an old issue.”

The Boston Beer program actually predates the recent economic crisis. The seeds of the idea, Mr. Koch said, came to him in 2007 as he walked to his car after he and his employees had volunteered to paint a nearby community center. “I should have felt really good, and I didn’t — I felt a little depressed,” he said. “What I realized is, I’d just taken about $10,000 worth of management time and talent, and turned it into about $1,000 worth of painting. And it was pretty bad painting, too.”

Mr. Koch retooled his company’s philanthropy to take advantage of its resources, particularly its employees’ expertise. The company has committed $1.4 million to finance loans, which are handled by Accion. The loans are small, typically $5,000 to $7,000, with terms of 18 months to two years and interest rates that vary regionally. (In New England, the rate is around 13 percent, typical for microloans.) Perhaps as important as the money is the tutoring by Mr. Koch and his employees. Most microloan programs provide borrowers with rudimentary counseling, but Boston Beer is unusually “high touch,” said Shaolee Sen, vice president for strategy and development at the Accion U.S. Network.

Ms. O’Garro was one of the program’s original clients — she has had two loans, totaling $4,000 — and though she’s repaid that debt and though the muffin business it helped finance has been dormant since 2010, she continues to derive benefits from the program with her cheesecake business, Delectable Desires. She learned how to price her cakes from an employee in Boston Beer’s finance department, Mike Cramer, who went to Whole Foods and scoped out the competition. “He actually made a spreadsheet for me of how much the high-end and low-end desserts cost,” she said.

Another borrower, Sandy Russo of Lulu’s Sweet Shoppe in Boston, said that when she had questions, she sometimes called Mr. Koch’s executive assistant. Last summer, when Lulu’s opened a second location, Boston Beer’s lawyers reviewed the lease and its public relations staff wrote the news release.

Of course, it’s one thing to provide that kind of support to a handful of companies. The question facing Accion and Boston Beer is whether the program can remain as intensive as it expands nationally. “We’re really struggling with that right now,” Ms. Sen said. “The portfolio has been so small up until this point that they really are passionate about their clients.”

Read More..