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Mostly cloudy High 57, Low 39 Page B6
• December 12, 2010 $1.50
Serving Central Oregon since 1903 www.bendbulletin.com
Mote’s the man! Body found might be Blaylock’s IDANHA — A Marion County Sheriff’s Office spokesman says kayakers spotted a body in the North Santiam River and investigators will try to determine if it belongs to missing Bend woman Lori “Woody” Blaylock. Sheriff’s spokesman Don Thomson says the kayakers discovered the body Saturday in the river near Idanha, east of Detroit Lake. The body couldn’t be recovered before nightfall. Blaylock was reported missing by her co-workers at St. Charles Bend on Nov. 2, and some of her clothing was found at another part of the river last month. Blaylock’s husband, Steven Blaylock, has since been arrested and faces a murder charge in her disappearance. — The Associated Press
Culver cowboy wins his 4th bareback world title SPORTS, D1
Muddy mix prompts water system scrutiny Oregon DEQ is working with the city of Bend to solve a glitch that can send a silty plume into Tumalo Creek
Internet saboteurs say it’s a fight for freedom By David Sarno Los Angeles Times
LOS ANGELES — Rafix was set to attack. The target: Visa .com. The weapon: a battery of personal computers ready to jam the site with millions of simultaneous log-in requests. “FIRE AT WILL, gentlemen!” Rafix wrote in an online message. “Enjoy the EPIC battle of GLORY!” Within seconds of the battle cry, the attackers crippled the website of the world’s largest credit card company. Unable to weather the massive surge in traffic, Visa’s site was out of commission for most of the day. Visa came under fire for its decision to suspend the processing of donations to WikiLeaks, the controversial website that has been publishing confidential U.S. government documents. The attack was coordinated through an Internet chat room where more than 1,000 online activists were signed in, massing for the call to fire. See Hactivists / A7
INDEX Movies
C3
Business
G1-6
Obituaries
B5
Classified
E1-6
Oregon
B3
Abby
C2
Community C1-8
Perspective F1-6
Crossword C7, E2
Sports
D1-6
Editorial
F2-3
Stocks
G4-5
Local
B1-6
TV listings
C2
Weather
B6
Milestones
C6
Photo courtesy of Bill Buchanan
Clean and muddy water runs down Tumalo Creek in Shevlin Park last month after part of the city of Bend’s Bridge Creek water system became clogged with debris. The Oregon Department of Environmental Quality is working with the city to find a solution to the problem.
By Nick Grube • The Bulletin
O
n one of his regular jogs through Shevlin Park last month, Bill Buchanan noticed something strange about Tumalo Creek. As the Bend attorney ran along one of the trails, he saw that the water had begun to
The Bulletin
Each case is different, but local detectives have heard the stories dozens of times. There are the employees who told themselves they weren’t stealing, that they’d pay it back. The caretakers who figured no one would notice if they drained some money from an elderly person’s account. The online scammers who preyed upon the trust and goodwill of unsuspecting strangers. And these days, with the economy making some people desperate and forcing business owners to take a closer look at their books, they’re the kinds of stories that are becoming more and more common. Around Central Oregon, law enforcement officials say they’ve had a steady stream of financial cases land on their desks this year. Many of the cases are increasingly complex, requiring police and prosecutors to sign up for specialized training, and enlist the help of accountants and other outside experts. This year, Bend police detectives have handled several highprofile cases involving people who allegedly stole from their employers or business owners who scammed customers. One involved a now former hospital communications director who eventually pleaded no contest to using hospital credit cards and checks to steal nearly $20,000. See Money / A8
A secretive few defend big banks in a vast market By Louise Story
and opaque with sediment.
On the third Wednesday of every month, the nine members of an elite Wall Street society gather in Midtown Manhattan. The men share a common goal: to protect the interests of big banks in the vast market for derivatives, one of the most profitable — and controversial — fields in finance. They also share a common secret: The details of their meetings, even their identities, have been strictly confidential. Drawn from giants like JPMorgan Chase, Goldman Sachs and Morgan Stanley, the bankers form a powerful committee that helps oversee trading in derivatives, instruments which, like insurance, are used to hedge risk. See Derivatives / A5
There was even a short section where the different hues ran parallel with each other, almost like merging lanes of traffic, before eventually mingling together and traveling downstream toward Tumalo Creek’s confluence with the middle portion of the Deschutes River. “It looked like the chocolate river in the Willy Wonka movie,” Buchanan said. “If you go two miles upstream, Tumalo Creek is as clear as can be.” While Buchanan had seen this sort of turbidity event happen on Tumalo Creek before, he always assumed it was natural runoff caused by rain or snow melt. It wasn’t until he undertook efforts to convince the city to change directions on its proposed $73 million over-
Inside • Deschutes County loses DEQ support in groundwater lawsuit, Page B1 haul of its Bridge Creek water system that he realized that the sedimentation was man-made, and in fact was caused by a design flaw in the city’s current surface water infrastructure. The Oregon Department of Environmental Quality is now looking for a way to solve this problem, and as a result of receiving photos of the creek from Buchanan, visited with city officials last week to try to find a solution. “It really was a severe case of tur-
bidity in the water,” said Eric Nigg, the DEQ water quality manager for Central Oregon. “We’re not looking at enforcement right now. We want to solve the problem, and at this point are just trying to work with the city to make sure it doesn’t happen again.” The turbidity Buchanan saw during his run was coming from a series of pipes and ditches the city of Bend uses to put excess water it takes from Bridge Creek back into Tumalo Creek. Most days this water is clear when it reaches the creek from this diversion channel, but a clog at the top of the ditch caused it to overflow, resulting in a significant amount of erosion that sent dirt and other debris into the stream. See Water / A6
New York Times News Service
In tainted eggs, a lengthy failure to act
The Bulletin An Independent Newspaper
Vol. 107, No. 346, 46 pages, 7 sections
SUNDAY
By Erin Golden
change color, trading in its crisp, clear complexion for a reddish brown that left the stream milky
We use recycled newsprint
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Increasingly intricate, financial scams rise in our area
By Lyndsey Layton The Washington Post
Thinkstock
Public health officials closed the books this month on an outbreak of salmonella that had sickened more than 1,900 people since May and led to the largest recall
of eggs in U.S. history. Two Iowa egg farms drew most of the blame, triggering a congressional inquiry, a criminal probe and lawsuits by victims. What has not drawn much scrutiny is the role of the federal government, which
recognized 20 years ago that salmonella in eggs posed a threat. Although federal inspectors have closely monitored meat and poultry for the better part of a century, they have largely ignored eggs. See Eggs / A4