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June 2009

AP Exclusive: Jackson said net worth $236M in 2007 (AP)

NEW YORK – It's one of the biggest mysteries in the Michael Jackson saga: How much was the lavish-spending, massively debt-ridden pop icon really worth? In the most detailed account yet of the singer's tangled financial empire, documents obtained by The Associated Press show Jackson claimed to have a net worth of $236.6 million as of March 31, 2007.
But less than $700,000 of that amount was in cash — a relatively paltry sum given his opulent lifestyle, prodigious borrowing and seven-figure shopping sprees.
The dollar amounts, which previously consisted of estimates, are crucial because Jackson's estate is expected to become the focus of a legal battle between the singer's family and creditors.
The revelation came Tuesday as Jackson's family reversed itself and said the singer did in fact have a will — complicating a bid by Jackson's mother to take control of her son's finances.
Jackson had $567.6 million in assets, including his Neverland Ranch and his share of the Sony/ATV Music Publishing catalog, which includes the rights to songs by the Beatles, according to a statement of financial condition prepared by Washington, D.C.-based accounting firm Thompson, Cobb, Bazilio & Associates.
The report was prepared at a time when Jackson had large sums of debt coming due that had to be refinanced. The financial statement, which is not as thorough as an audit, was based in large part on estimates provided by Jackson's advisers that the accounting firm said it could not verify.
In the documents, the firm also said it omitted the amount Jackson owed in income taxes.
The documents do not show how much money he had coming in that year or how much he was spending, which makes it hard to estimate just how cash-poor he was. Still, the statement paints a picture of Jackson's tangled finances and the mountain of debt he left behind.
The five-page report says Jackson had debts of $331 million. The singer had just $668,215 in cash, according to the report.
The accounting firm did not return calls seeking comment.
The report puts a net value on Jackson's 50 percent stake in the Sony/ATV Music Publishing catalog — his most prized asset — at $390.6 million. The 750,000-song catalog includes music by the Beatles, Bob Dylan, Neil Diamond, Lady Gaga and the Jonas Brothers.
A separate document obtained by the AP details Jackson's dealings with Sony Music Entertainment Inc., which owns the other half of Sony/ATV. Jackson was guaranteed a cash distribution of $11 million a year from the venture through September 2011, according to the May 25, 2007, document that was signed by the pop star.
The document also detailed Sony's ability to buy an unspecified percentage of Jackson's remaining share in Sony/ATV.
It said Sony agreed to guarantee loans made to Jackson through September 2011 and to help him refinance his debts. Sony also agreed to advance Jackson money to help pay the interest to his main creditor at the time, Fortress Investment Group LLC, to avoid defaulting. Barclays Bank PLC took over the Fortress loan, which is now around $315 million, in December 2007.
The documents also show that Jackson gave his approval for Sony/ATV to use up to $400 million to purchase the 125,000-song Famous Music LLC catalog from Viacom Inc., which holds such songs as "Footloose" and "The Real Slim Shady" by Eminem. The deal was announced a week later.
A Sony/ATV spokesman declined to comment.
Another of Jackson's prized possessions, his Neverland Ranch, is valued at $33 million, according to the accounting firm's report. He also had $20 million worth of cars, antiques, collectibles and other property.
It's likely that Neverland, a 2,500-acre property in the rolling hills of Santa Barbara County, has dropped in value since 2007 along with the rest of the battered California housing market, experts said.

"The luxury market in the past year has really taken a hit in markets across the country," said Rick Goodwin, publisher of Ultimate Homes and its parent publication, Unique Homes.

The ranch in central California's wine country was set to be sold in March 2008 because of missed payments on a $24.5 million loan, but Jackson managed to cut an 11th-hour deal to keep it off the auction block.

The fact that few, if any, similar properties in the area are selling makes it even harder to determine Neverland's current market value. A couple of properties in the 500-acre range are on the market in the area for around $10 million, said Steve Schott, a real estate appraiser based in Santa Barbara.

Jackson died Thursday at age 50 of what his family has said was cardiac arrest. Medical examiners in Los Angeles are perhaps weeks away from determining the official cause of death.

The divvying up of Jackson's assets — and the settling of his debts — are likely to be hotly contested in court. On Monday, lawyers for Katherine and Joe Jackson won temporary custody of Michael Jackson's three children and moved to become administrators of his estate.

A judge granted 79-year-old Katherine Jackson temporary guardianship of the children, who range in age from 7 to 12. He also gave her control over some of her son's personal property that is now in the hands of an unnamed third party. But the judge did not immediately rule on her requests to take charge of the children's and Jackson's estates.

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Associated Press writers Alex Veiga, Ryan Nakashima and Anthony McCartney in Los Angeles contributed to this report.

Mens Wallets

The modern bi-fold wallet with multiple "card slots" became standardized in the early 1950s with the introduction of the first credit cards. Some innovations include the introduction of the velcro-closure wallet in the 1970s.

Tri-fold wallet: a wallet with three folds, in which credit cards are generally stored vertically.

Here

Keurig Brewer

Keurig Brewer

When coffee reached North America during the colonial period, it was initially not as successful as it had been in Europe. During the Revolutionary War, however, the demand for coffee increased so much that dealers had to hoard their scarce supplies and raise prices dramatically; this was partly due to the reduced availability of tea from British merchants. After the War of 1812, during which Britain temporarily cut off access to tea imports, the Americans' taste for coffee grew, and high demand during the American Civil War together with advances in brewing technology secured the position of coffee as an everyday commodity in the United States.

The type of grind is often named after the brewing method for which it is generally used. Turkish grind is the finest grind, while coffee percolator or French press are the coarsest grind. The most common grinds are between the extremes; a medium grind is used in most common home coffee brewing machines.[54]

Calif. lawmakers face deadline to avoid IOUs (AP)

SACRAMENTO, Calif. – A midnight deadline loomed Tuesday as California lawmakers and Gov. Arnold Schwarzenegger dueled over ways to cut into a $24.3 billion budget deficit or face having to issue IOUs to cover the state's bills.
Democrats lawmakers, the majority in both houses, tried two approaches Monday but both failed to draw Republican support.
Voting almost totally along party lines, the state Senate approved a package of bills featuring spending cuts and fee and tax increases to close the deficit.
But the Republican governor quickly promised to veto the legislation, saying he wouldn't sign anything that raised taxes or fees more than he has proposed.
"They should forget about that," he said, accusing Democrats of going through a "song and dance. Let's get to work, fix it."
Hours later, Senate Democrats put up three stopgap spending cut bills that passed the Assembly last week with bipartisan support. But again Republicans refused to budge, saying the budget problems needed a comprehensive solution focusing on spending cuts.
Senate President Pro Tem Darrell Steinberg said Democrats would not accept the deep cuts in college aid, health care and welfare programs sought by Schwarzenegger.
State Controller John Chiang has said he would have to start issuing IOUs unless lawmakers act by the end of the fiscal year on Tuesday.
Without a compromise, roughly $3 billion worth of IOUs will be issued in July to everyone from contractors to welfare recipients.
Democratic Assembly Speaker Karen Bass and Steinberg accused the governor of using last-minute maneuvers to push a laundry list of policy reforms rather than addressing the budget gap.
"It's not the way to go about working with people," Steinberg said. "It's not the way to go about working with your partner."
Democrats want to solve the deficit by cutting spending by $11 billion, raising the vehicle license fee by $15 to keep state parks open and increasing taxes on tobacco products and companies that drill for oil.
Schwarzenegger has proposed more aggressive cuts of $16 billion, including dropping health care for 930,000 low-income children and eliminating the state's main welfare program. He also would borrow $2 billion from local governments, take $6 billion from other government accounts, accelerate personal and corporate income tax collections, and cut state employee pay by another 5 percent.
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Associated Press Writers Juliet Williams, Samantha Young and Don Thompson contributed to this report.

Madoff gets 150 years for massive investment fraud (Reuters)

NEW YORK (Reuters) –
Bernard Madoff was sentenced on Monday to 150 years in prison -- the maximum penalty the judge could give him for "extraordinarily evil" crimes in Wall Street's biggest and most brazen investment fraud.

Fleeced investors in the courtroom cheered and applauded as the judge handed down the penalty.

Madoff, 71, stood passively with his hands clasped at his waist, showing no reaction when he heard the sentence that will send him to prison for the rest of his life.

The former nonexecutive chairman of the Nasdaq stock market has been jailed in a Manhattan cell since he pleaded guilty to 11 charges including securities fraud, money laundering and perjury in March.

"Here the message must be sent that Mr. Madoff's crimes were extraordinarily evil," U.S. District Judge Denny Chin said in rejecting defense pleas for a lenient, 12-year sentence. "The breach of trust was massive.

"I simply do not get the sense that Mr. Madoff has done all that he could or told all that he knows."

The gray-haired money manager was dressed in his signature dark gray suit, white shirt and tie instead of a prison jumpsuit.

The disgraced financier sat passively throughout the hour-and-a-half hearing as his victims called him a "beast," an "animal" and a "lowlife."

He apologized to them, at one point turning toward the 250 people in the courtroom.

"I will live with this pain, with this torment, for the rest of my life," he calmly said. "I live in a tormented state knowing the pain and suffering I have created."

Madoff, who has been accused of bilking investors worldwide out of as much as $65 billion, said, "In my business, when you make a trading error, you're expected to make a trading error, it's accepted. My error was much more serious. I made an error of judgment."

CAUGHT OUT BY FINANCIAL CRISIS

Madoff's December arrest came as investors were feeling the brunt of the worst financial crisis since the 1930s Great Depression.

The case has triggered widespread criticism of the U.S. Securities and Exchange Commission, which has been accused of missing red flags that could have brought the curtain down on his asset management business.

It was not known where Madoff will serve his sentence for what prosecutors described as a worldwide fraud of small and wealthy investors, charities and financial institutions.

Judge Chin heard wrenching statements from nine of Madoff's victims, some of whom said they had lost their life savings, were forced to sell their homes, or had to apply for government assistance to buy food.

"I only hope that his prison sentence is long enough so that his jail cell will become his coffin," said Michael Schwartz, 33, who said his family had been robbed of savings earmarked for the care of his mentally disabled brother.

The White House said that the judge had sent a strong signal to those who handle other people's money.

"My guess is that that message will be heard loud and clear," said President Barack Obama's spokesman Robert Gibbs.

Madoff was arrested in December after his two sons told authorities that he had confessed to them that his investment empire was a sham.

Prosecutors have said that Bernard L. Madoff Investment Securities showed $65 billion in customer accounts weeks before his arrest, but the trustee winding down the firm has so far only been able to collect $1.2 billion to return to investors.

As much as $170 billion flowed through the principle Madoff account over decades. Madoff was symbolically ordered to pay that amount in restitution.

While a much lower sentence would have sent Madoff to prison for life, Chin said he deserved the maximum, typically handed down to organized crime bosses.

"The fraud here was staggering," the judge said.

One law professor said she was surprised by the sentence but uncertain whether it would serve as a deterrent.

"I'd love to think that the mini-Madoffs out there would think that what happened today has something to do with them, but I suspect most of them do not," said Jayne Barnard of the College of William and Mary in Williamsburg, Virginia.

Madoff's lawyer said no decision had been made on whether to appeal the sentence.

None of Madoff's relatives came to court. They have not attended any of his prior court appearances.

The judge said he had not received a single letter on Madoff's behalf, testifying to any good deeds or charitable works. "The absence of such support is telling," Chin said.

Madoff's wife Ruth, 68, has not been charged with any crimes but she has been vilified by defrauded investors, shunned by friends, and pursued by the media. Breaking her long silence, she said in a statement on Monday that she had been "betrayed and confused" by her husband's scam.

"From the moment I learned from my husband that he had committed an enormous fraud, I have had two thoughts -- first, that so many people who trusted him would be ruined financially and emotionally, and, second, that my life with the man I have known for over 50 years was over," she said.

Madoff has said he acted alone. The only other person charged criminally is his outside accountant.

Madoff's brother, Peter, and his sons, Mark and Andrew, were executives in his firm's brokerage unit. They have said that they were not aware of or involved in the crooked asset management side.

Madoff and his wife have agreed to the sale of three luxury properties and other assets and valuables. Proceeds from asset sales will be distributed to defrauded investors.

Ruth Madoff will be left with $2.5 million, after forfeiting claim to some $80 million in assets including the couple's Manhattan penthouse apartment.

Madoff told investors in the courtroom that he could offer no excuses, saying he tried to undo his crimes but "the harder I tried, the deeper a hole I dug for myself."

Investors said the apologies left them cold.

"There's something very pathological. He is still making excuses for himself," said George Nierenberg, 57.

(Reporting by Grant McCool, Martha Graybow, Daniel Trotta, Mike Erman and Christine Kearney; Editing by John Wallace, Toni Reinhold)

Daily sex makes for healthier sperm (Reuters)

LONDON (Reuters) –
Having sex every day improves the quality of men's sperm and is recommended for couples trying to conceive, according to new research.

Until now doctors have debated whether or not men should refrain from sex for a few days before attempting to conceive with their partner to improve the chance of pregnancy.

But a new study by Dr David Greening of Sydney IVF, an Australian centre for infertility and in vitro fertilisation (IVF) treatment, suggests abstinence is not the right approach.

He studied 118 men with above-average sperm DNA damage and found the quality of their sperm increased significantly after they were told to ejaculate daily for seven days.

On average, their DNA fragmentation index -- a measure of sperm damage -- fell to 26 percent from 34 percent, Greening told the European Society of Human Reproduction and Embryology in Amsterdam on Tuesday.

Frequent sex does decrease semen volume but for most men this is not a problem.

"It seems safe to conclude that couples with relatively normal semen parameters should have sex daily for up to a week before the ovulation date," he said in a statement.

"In the context of assisted reproduction, this simple treatment may assist in improving sperm quality and ultimately achieving a pregnancy."

Greening said it was likely frequent ejaculation improved the quality of sperm by reducing the length of time they were exposed to potentially damaging molecules called reactive oxygen species in the testicular ducts.

(Reporting by Ben Hirschler, editing by Paul Casciato)

China's internet porn filter -- no Depp please (Reuters)

BEIJING (Reuters) –
What do Johnny Depp, Garfield, Paris Hilton and roast pork have in common? In China, the answer is that a new government-mandated Internet filter rates some pictures of all four of them as bad for your moral health.

Beijing has ordered all personal computers sold in China from July 1 to be preinstalled with the Green Dam software, which it says is designed to block pornographic and violent images, and which critics fear will be used to extend censorship.

But a trial of the programme, which is available online for free download (http://www.skycn.com/soft/46657.html), suggested

its filters may be of limited use to worried parents.

When the software is installed, and an image scanner activated, it blocks even harmless images of a film poster for cartoon cat Garfield, dishes of flesh-colour cooked pork and on one search engine a close-up of film star Johnny Depp's face.

With the image filter off, even though searches with words like "nude" are blocked, a hunt for adult websites throws up links to soft and hardcore pornography sites including one with a video of full penetrative sex playing on its front page.

Green Dam has not detailed how it scans images for obscene content, but computer experts have said it likely uses colour and form recognition to zoom in on potential expanses of naked flesh.

Programme settings allow users to chose how tightly they want images scanned. When too much skin is detected, Green Dam closes all internet browsers with no warning, sometimes flashing up a notice that the viewer is looking at "harmful" content.

But the interpretation of obscene is apparently generous enough to include the orange hue of Garfield's fur and, on the highest security settings, prevent viewers clicking through to any illustrated story on one English language news website.

A programme to scan written content appears less sensitive, with a string of explicit words typed into a word document triggering no response, although some users have complained in online forums of shut-downs similar to those of web browsers.

SEX OR POLITICS?

The software also allows users to choose what they want to filter for, and besides adult websites and violence, categories include "gay" and "illegal activities."

Gay and health activists fear the blanket ban on "gay content," in a country where homosexuality is not criminalised, could damage projects including sexual health and AIDS education.

And government critics worry the "illegal activities" section will cover political and social activities Beijing objects to, tightening access to non-approved information, already filtered by censors and a firewall.

Another setting allows Green Dam to take regular snapshots of a user's screen and store them for up to two weeks -- ostensibly so parents can monitor computer use by minors.

But it could also potentially leave security officials a track of computer use by a suspected dissident, or be a gift to fraudsters hunting online bank details and private information.

Researchers in the U.S. have already said they are concerned Green Dam leaves users vulnerable to malicious sites that might steal personal data or install code on the personal computer.

Western governments and trade groups have also asked China to reconsider, based on concerns ranging from cyber-security and performance of the software to Internet freedoms.

"People say the software is not very stable and has many technological problems," said Joerg Wuttke, the president of the European Union Chamber of Commerce in China, which has dubbed the introduction of Green Dam "hasty."

China's foreign ministry on Tuesday declined to respond to criticisms of the software.

(Additional reporting by Maxim Duncan, Kirby Chien and Alan Wheatley; Editing by Jerry Norton)

Indonesia premier hopefuls accused on environment (AFP)

JAKARTA (AFP) –
Presidential hopefuls vying for Indonesia's top job next week are ignoring the environment, despite dire threats from global warming and deforestation, environmental group Greenpeace has said.

None of the three candidates has made the environment a priority in their campaigns or offered any detailed policies on issues such as deforestation or carbon emissions, Greenpeace climate campaigner Arif Fiyanto said.

"Up to now we haven't seen anything concrete from the three pairs of candidates," Fiyanto said.

Rampant deforestation fuelled by corruption and poor law enforcement has made Indonesia the world's third-largest emitter of greenhouse gases behind the United States and China.

Greenpeace activists said the government of President Susilo Bambang Yudhoyono had paid little more than pay lip service to environmental problems over its five years in power.

"Environmental problems aren't sexy in the election, indeed ... we've never had a government that has paid attention to the environment," forest campaigner Joko Arif said.

"They're talking about poverty, they're talking about benefits for the community, but if they don't talk about environmental problems it's complete (rubbish)," he added.

Yudhoyono is the strong favourite to win the July 8 poll, which will pit him against ex-president Megawati Sukarnoputri and current Vice President Jusuf Kalla.

Megawati has agreed to a Greenpeace demand for a moratorium on deforestation, but has also promised to open millions of hectares (acres) of land for farming and biofuel plantations, Arif said.

Indonesia has been a key advocate of a scheme to get big polluters in rich countries to pay for forest conservation in developing countries.

But Greenpeace fears the plan could trigger a collapse in global carbon prices and undermine broader efforts to fight climate change.

Courts face new challenges in faith healing cases (AP)

NASHVILLE, Tenn. – Though most states have child abuse laws allowing religious exemptions for parents who shun medicine for their sick children, recent cases have raised the thorny legal issues for parents following less-recognized faiths.
Historically, many of the parents addressed by the laws have embraced faiths like Pentecostalism and Christian Science, while others are Jehovah's Witnesses — all established denominations that the law has gradually taken into account.
It's harder for judges to decide cases involving parents who don't belong to a well-known denomination, yet also don't believe in using medicine for their kids. Legal and religious scholars say it's becoming more difficult for courts to decide when to honor the religious beliefs of parents and when to order conventional medical treatment for extremely sick children.
The manslaughter trial of an Oregon couple who claim they were following their religious beliefs in the 2008 pneumonia death of their 1-year-old daughter was to begin Monday. Carl and Raylene Worthington are members of Followers of Christ Church, which has been investigated for past child deaths.
In Tennessee, Jacqueline Crank and her minister Ariel Sherman face child neglect charges in the death of her 15-year-old daughter Jessica, who died in 2002 with a basketball-sized tumor on her shoulder. Prosecutors say based on Sherman's advice, the girl's mother relied on prayer instead of medicine.
Sherman has been accused of being a cult leader whose Universal Life Church is not a legitimate religion. He has denied such charges and says the church is Christian-based and embraces the Bible.
Believers in faith healing point to a Biblical verse in the Epistle of James, which describes how church elders should be called in to pray over the sick. There's no mention of doctors, and literalists interpret it to mean medical treatment should be eschewed over prayer.
Gregory P. Isaacs, an attorney for Crank, who's out on bond, argues that Tennessee's religious exemption law is untested and too vague.
"It really has a tremendous amount of problems," Isaacs said. "What is an organized religion and what is an ordained minister? What illnesses can you attempt to heal by faith? Those are the two pitfalls in the statute. That's not what's really clear."
Jim Dwyer, a William and Mary Law School professor who's written articles about and participated in litigation on the topic, said it's often more complicated for courts to discern cases with unaffiliated religions because judges and juries aren't as familiar with them and are skeptical of their legitimacy.
"The Supreme Court has adopted a very broad definition of religion," Dwyer said. "But ... you have to show sincere religious beliefs. Some judges might be skeptical of sincerity if it's something they've never heard of, if the person says, 'I don't belong to a certain church. I just have some beliefs that I saw on the Internet,' or 'In our own home, we've developed this set of beliefs.'"
Dr. Ellen Wright Clayton, a pediatrician and co-director of the Center for Biomedical Ethics and Society at Vanderbilt University, says when treatment for an illness is very toxic and the prognosis is dire, courts tend to rule parents don't have to pursue medical treatment. If that's not the case, courts are likely to order the treatment.
"Until medicine became effective, there was no push to say we absolutely have to do medical treatment. There wasn't this notion of deference (to religion) until medicine began to work and to become institutionally powerful."
Besides the states that have religious exemption laws, five states — Hawaii, Maryland, Massachusetts, Nebraska and North Carolina — have repealed such laws.
Many of the exemption laws were enacted in the 1970s. Rita Swan, director of the Sioux City, Iowa-based advocacy group Children's Healthcare is a Legal Duty, which lobbies states to repeal such laws, said that since 1975, there have been at least 274 known cases of U.S. children who have died after medical care was withheld on religious grounds.
She says the majority of such cases are still associated with established denominations like Pentecostalism, though "the Internet has opened up some more possibilities than it did before" and there have been some cases involving unaffiliated denominations.
At least two recent high-profile cases involve parents whose beliefs were drawn from Internet-based religious groups.
Authorities in Minnesota convinced a judge to force 13-year-old Daniel Hauser into chemotherapy, prompting his mother Colleen to skip a court hearing and — with her son in tow — go on the run for nearly a week in May.

They headed to Southern California, where they considered a trip into Mexico for alternative cancer treatments, before eventually returning to the Hausers' home in Sleepy Eye, Minn., about 100 miles southwest of the Twin Cities. The boy has since received chemotherapy treatments, which appear to be working.

The family prefers natural healing practices suggested by an Internet-based group called the Nemenhah Band, which says it follows American Indian beliefs.

In Wisconsin, a jury convicted Leilani Neumann, of Weston, Wis., of second-degree reckless homicide in May for failing to rush her 11-year-old daughter Madeline Kara Neumann to a doctor. She died of untreated diabetes in March 2008.

Prosecutors argued she killed the girl by ignoring obvious symptoms — she couldn't walk or talk and was believed to be in a coma — until it was too late. The mother testified she didn't realize her daughter was so ill and did all she could to help, in line with the family's belief in faith healing.

Neumann sought the spiritual assistance of the online evangelical Christian ministry Unleavened Bread Ministries.

In the wake of the Wisconsin case, Swan said legislators there are considering a bill that would repeal the state's religious exemption to its child abuse and neglect law.

"In the U.S. under the First Amendment, we're not supposed to be establishing religion or carving out any preferences for prestigious religions," Swan said. "The courts should not be giving any kind of deference to established denominations and making any distinctions."

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On the Net:

Children's Healthcare is a Legal Duty: http://www.childrenshealthcare.org/

Australian serial rapist jailed for 28 years (AFP)

MELBOURNE (AFP) –
An Australian serial rapist who dressed his unconscious victims in his collection of women's underwear and filmed assaults on them has been jailed for 28 years.

Victorian Supreme Court Chief Justice Marilyn Warren said John Xydias, 45, had degraded women in a spree lasting 15 years which media described as one of the country's worst sex crimes.

"Your offending was sustained over a period of 15 years, your conduct was not low-level or less-serious rape," Warren said.

"The worst aspect of your conduct was the degrading and dehumanising of your victims."

Xydias showed little emotion as the sentence was read out. He pleaded guilty to 25 counts of rape and 61 indecent assaults at the Melbourne house he shares with his parents and at the family holiday home.

The crimes were discovered when Xydias's girlfriend handed a suspicious DVD to police, who searched his home and found 13 videos of his sex assaults as well as recording equipment and women's underwear.

Xydias denied doping his victims with date-rape drug Rohypnol and said they had fallen unconscious after drinking and smoking cannabis. The court earlier heard that one of the women had been unconscious for two days.

Xydias will serve a minimum of 20 years before being eligible for parole.