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OnlyFans bribed Meta to put thousands of porn stars on terror watchlist, suits claim

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OnlyFans squashed competitors in the online porn industry with the help of a bizarre scheme that bribed Meta employees to throw thousands of porn stars onto a terrorist watchlist, according to a group of explosive lawsuits. 

Adult performers who sold X-rated photos and videos on rival sites saw their Instagram accounts falsely tagged as containing terrorist content — crippling their ability to promote their business and devastating their incomes, according to the suits.

Sellers of smutty pictures were then “shadowbanned” across Instagram, Facebook, YouTube, Twitter and other sites, the suits allege. Targeted accounts also included businesses, celebrities, influencers and others who “have nothing to do with terrorism,” according to the suits.

“When I heard that my content may be listed on the terror watch list, I was outraged,” Alana Evans, an adult performer and one of the plaintiffs in the California suit, told The Post. “I was angry because it affected my income when my social media traffic dropped significantly, and I was angry because I am the daughter of a veteran who fought for this country.”

Alana Evans is an adult performer and one of the plaintiffs in the California suit.
Alana Evans

Evans and others were all allegedly placed in a database of terror-linked accounts run by the Global Internet Forum to Counter Terrorism, or GIFCT, a nonprofit group intended to stop the spread of mass shooting videos and other terrorist content across social media sites.

After adult performers who used rival sites allegedly had their names added to the GIFCT’s list, traffic to the rival sites drastically fell, the suits allege. Meanwhile, OnlyFans’ traffic and profits soared as the site became a household name.

Law firm Milberg Coleman Bryson Phillips Grossman is representing the plaintiffs in suits filed against Meta and OnlyFans. The lawyers claim they have acquired a list of more than 21,000 Instagram accounts they say were unfairly tagged as potential terrorists, previously unreported California superior court filings show. 

Kelly Pierce
Kelly Pierce is another plaintiff in the California suit.
Kelly Pierce

In a statement to The Post, Milberg partner David Azar called on Meta and the GIFCT to “open up” their records “to help figure out whether our clients or their content are indeed on any databases intended for terrorists, and how to get them off.” 

In a statement to The Post, OnlyFans said, “We are aware that these cases have been filed. We are not aware of any evidence which supports these allegations. The alleged participants have all publicly stated that these cases have no merit.”

Meta did not respond to requests for comment but told the BBC, which first first reported the bribery allegations, that it had investigated and found no evidence the terror database had been abused.

“These allegations are without merit and we will address them in the context of the litigation as needed,” Meta said.

The GIFCT likewise did not respond to The Post but told the BBC that it was “not aware of any evidence to support the theories presented in this lawsuit between two parties with no connection to GIFCT.”

“Our continuing work to enhance transparency and oversight of the GIFCT hash-sharing database is the result of extensive engagement with our stakeholders and has no connection to these claims,” the GIFCT added

The plaintiffs claim the scheme dates back to 2018, when they say one or more Meta employees — potentially including an unnamed senior executive — took bribes from OnlyFans.

Meta
Meta is accused of wrongly tagging Instagram users as potential terrorists.
Bloomberg via Getty Images

They claim the bribes were routed from OnlyFans’ parent company, Fenix International, through a secret Hong Kong subsidiary into offshore Philippines bank accounts set up by the crooked Meta employees, potentially including at least one unnamed senior executive.

The suits — which also name OnlyFans majority owner Leonid Radvinsky as a defendant — claim the bribes paid off around October 2018, when people sold content through OnlyFans’ rivals were allegedly hit with a “massive spike in content classification/filtering activity” that limited their reach. Meanwhile, users of OnlyFans enjoyed a “mysterious immunity” to the crackdown, the plaintiffs claim. 

“The blacklisting of plaintiff and others has caused OnlyFans to achieve a drastically enlarged market share while its competitors stagnated or declined,” attorneys in a class action led by OnlyFans competitor JustFor.Fans wrote in an August court filing in California state court. “The defendants engaged in a scheme to misuse a terrorist blacklist to obtain a competitive advantage.” 

OnlyFans owner Leonid Radvinsky
OnlyFans majority owner Leonid Radvinsky is listed as a defendant.
Leonid Radvinsky/Facebook

The suits include the California superior court filing court on behalf of JustFor.Fans and a California federal court suit on behalf of a group of several women led by the Adult Performing Artists Guild. In June, Meta asked a judge to throw out the federal suit. Hearings in both cases are slated for September.  

Another suit filed in Broward county, Florida on behalf of adult site FanCentro lists OnlyFans as a defendant but does not name Meta. 

The GIFCT was formed by Meta, Microsoft, Twitter, and Google’s YouTube in 2017 in a joint effort to stop the spread of mass shooting videos and other terrorist material online. When a member of the group flags a photo, video or post as terrorist-related, a digital fingerprint called a “hash” is shared across all its members.

GIFCT
The GIFCT was formed by Meta, Microsoft, Twitter, and Google’s YouTube in 2017.
Global Internet Forum to Counter

In effect, that means a bikini pic wrongly flagged as jihadist propaganda on Instagram can also be quickly censored on Twitter or YouTube, all without the poster or public knowing that it was placed on the list — much less how or why.

“Due to the proliferation of the GIFCT database, any mistaken classification of a video, picture or post as ‘terrorist’ content echoes across social media platforms, undermining users’ right to free expression on several platforms at once,” Electronic Frontier Foundation researchers Svea Windwehr and Jillian C. York wrote in 2020.

“While [the GIFCT’s system] sounds like an efficient approach to the challenging task of correctly identifying and taking down terrorist content, it also means that one single database might be used to determine what is permissible speech, and what is taken down — across the entire Internet,” the researchers added.

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Sister Patricia Daly, 66, Dies; Took On Corporate Giants on Social Justice

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For years, Sister Pat and other environmentalists had urged ExxonMobil to take significant steps to reduce greenhouse-gas emissions from its operations and products. In 2007, she proposed a resolution that called on that energy giant to set a firm date to report on its progress.

“We’re the most profitable company in the history of the planet,” she told Rex Tillerson, then the company’s chief executive (and later secretary of state in the Trump administration), at the company’s annual meeting, “but what will be our long-term health when we are really faced with the regulatory and other challenges around global warming?”

She added: “We are now, this company and every single one of us, challenged by one of the most profound moral concerns. And we have the wherewithal to respond to that.”

The proposal won 31 percent of the ballots, or about 1.4 billion shares, the largest tally for an ExxonMobil climate-change resolution. If not an outright victory, it was a page in a decades-long narrative that led ExxonMobil to put a climate scientist on its board in 2017. Three executives who recognized the urgency to address climate change joined the company’s board in 2021, nominated by a tiny activist hedge fund, Engine No. 1.

“The arc of her work led us to those victories by working from the inside and the outside,” John Passacantando, the founder of Ozone Action, an anti-global warming group, and a former executive director of Greenpeace, said in a phone interview.

In 1999, Vanity Fair named her to its Hall of Fame, applauding her as one who “translates belief into commitment and never backs down from a fight.”

Mary Beth Gallagher, who replaced Sister Pat as executive director of the Tri-State Coalition in 2017, said Sister Pat had not become frustrated when her resolutions were routinely voted down.

“She lived in hope,” Ms. Gallagher said. “We never talked about winning or losing. It was about raising consciousness and educating. If we’re not asking these questions, who will?”

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Families can make a tax-free rollover from 529 plans to Roth individual retirement accounts starting in 2024

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Maskot | Maskot | Getty Images

Americans who save for college in 529 plans will soon have a way to rescue unused funds while keeping their tax benefits intact.

A $1.7 trillion government funding package has a provision that lets savers roll money from 529 plans to Roth individual retirement accounts free of income tax or tax penalties.

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The House passed the measure Friday and the Senate did so Thursday. The bill heads to President Biden, who’s expected to sign it into law.

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The rollover measure — which takes effect in 2024 — has some limitations. Among the largest: There’s a $35,000 lifetime cap on transfers.

“It’s a good provision for people who have [529 accounts] and the money hasn’t been used,” said Ed Slott, a certified public accountant and IRA expert based in Rockville Centre, New York.

That might happen if a beneficiary — such as a child or grandchild — doesn’t attend a college, university, vocational or private K-12 school, or other qualifying institution, for example. Or, a student may receive scholarships that mean some 529 funds are left over.

Millions of 529 accounts hold billions in savings

There were nearly 15 million 529 accounts at the end of last year, holding a total $480 billion, according to the Investment Company Institute. That’s an average of about $30,600 per account.

529 plans carry tax advantages for college savers. Namely, investment earnings on account contributions grow tax-free and aren’t taxable if used for qualifying education expenses like tuition, fees, books, and room and board.

Retirement plan changes in the omnibus spending bill

However, that investment growth is generally subject to income tax and a 10% tax penalty if used for an ineligible expense.

This is where rollovers to a Roth IRA can benefit savers with stranded 529 money. A transfer would skirt income tax and penalties; investments would keep growing tax-free in a Roth account, and future retirement withdrawals would also be tax-free.  

Some think it’s a handout for the rich

However, some critics think the rollover policy largely amounts to a tax handout to wealthier families.

“You’re giving savings incentives to those who can save and leaving behind those who cannot save,” said Steve Rosenthal, a senior fellow at the Urban-Brookings Tax Policy Center.

A 2012 analysis conducted by the Government Accountability Office found the typical American with a 529 account had “much more wealth” than someone without: $413,500 in total wealth for the median person, about 25 times the amount of a non-accountholder.

You’re giving savings incentives to those who can save and leaving behind those who cannot save.

Steve Rosenthal

senior fellow at the Urban-Brookings Tax Policy Center

Further, the typical owner had a roughly $142,000 annual income versus $45,000 for other families, the GAO report said. Almost half, 47%, had incomes over $150,000.

The new 529-to-Roth IRA transfer provision doesn’t carry income limits.

Limitations on 529-to-IRA transfers

While the new tax break primarily benefits wealthier families, there are “pretty significant” limitations on the rollovers that reduce the financial benefit, Jeffrey Levine, a certified financial planner and certified public accountant based in St. Louis, said in a tweet.

The restrictions include:

  • A $35,000 lifetime cap on transfers.
  • Rollovers are subject to the annual Roth IRA contribution limit. (The limit is $6,500 in 2023.)
  • The rollover can only be made to the beneficiary’s Roth IRA — not that of the account owner. (In other words, a 529 owned by a parent with the child as beneficiary would need to be rolled into the child’s IRA, not the parent’s.)
  • The 529 account must have been open for at least 15 years. (It seems changing account beneficiaries may restart that 15-year clock, Levine said.)
  • Accountholders can’t roll over contributions, or earnings on those contributions, made in the last five years.

In a summary document, the Senate Finance Committee said current 529 tax rules have “led to hesitating, delaying, or declining to fund 529s to levels needed to pay for the rising costs of education.”

“Families who sacrifice and save in 529 accounts should not be punished with tax and penalty years later if the beneficiary has found an alternative way to pay for their education,” it said.

Are 529 plans already flexible enough?

Some education savings experts think 529 accounts have adequate flexibility so as not to deter families from using them.

For example, owners with leftover account funds can change beneficiaries to another qualifying family member — thereby helping avoid a tax penalty for non-qualified withdrawals. Aside from a kid or grandkid, that family member might be you; a spouse; a son, daughter, brother, sister, father or mother-in-law; sibling or step-sibling; first cousin or their spouse; a niece, nephew or their spouse; or aunt and uncle, among others.

Owners can also keep funds in an account for a beneficiary’s graduate schooling or the education of a future grandchild, according to Savingforcollege.com. Funds can also be used to make up to $10,000 of student loan payments.

The tax penalty may also not be quite as bad as some think, according to education expert Mark Kantrowitz. For example, taxes are assessed at the beneficiary’s income-tax rate, which is generally lower than the parent’s tax rate by at least 10 percentage points.

In that case, the parent “is no worse off than they would have been had they saved in a taxable account,” depending on their tax rates on long-term capital gains, he said.



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Goldman grumbling grows for banking giant to sack CEO David Solomon

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The knives are out for Goldman Sachs CEO David Solomon, and this time the people brandishing them aren’t the usual suspects — his junior staffers annoyed that they have to work late or come into the office several times a week.

Solomon’s problems are more serious and existential, I am told, and how he handles what can best be described as a revolt in some quarters of Goldman’s middle and upper management ranks could determine how much longer he stays in his job.

Solomon, 60, took the job in 2018 and was always somewhat of an odd choice to run the white-shoe investment bank that usually cultivated its leaders from within. He cut his teeth at a decidedly un-Goldman-like venue: the scrappy investment bank Bear Stearns (ultimately one of the causalities of the 2008 financial crisis).

He joined Goldman in 1999, as a partner, no less, because his deal-making chops allowed him to skip layers of management.

In other words, Solomon is an outsider at a firm with a wickedly insular culture. He has a quirky side gig as a DJ in the summer Hamptons party circuit. He’s also not one for small talk, and doesn’t consult with a lot of people before handing down his edicts. 

“He doesn’t breed a lot of love,” said one former Goldman executive who knows Solomon well.

Lots of people at Goldman don’t like him, and they’re letting their views be heard both internally and with pals at rival firms.

Solomon as a DJ
Solomon is an outsider at a firm with a wickedly insular culture.
David Solomon/Instagram

For the record: I’ve met Solomon and like him for his no-BS style. And until pretty recently, the numbers show him doing a great job. Goldman was running on all cylinders in deals and trading. Even as the market corrects, shares are up about 60% since Solomon took over as CEO in 2018 compared to around a 44% rise in the S&P during that time.

Goldman is still the top M&A shop, even widening its market share over rivals in that important business line. Solomon was the first among his fellow CEOs to see the downturn and enact significant layoffs to cut costs.

Still, the grumbling about Solomon is spreading to the managing director and partner class. High-priced Wall Street talent don’t call all the shots at any firm, of course. But Goldman’s MDs and partners have historically been a powerful force when the board decides the fate of current management, which makes Solomon’s hold on his job increasingly precarious as more and more of them defect from his camp.

David Solomon as a DJ
Solomon was the first among his fellow CEOs to see the downturn and enact significant layoffs to cut costs.
David Solomon/Instagram

Here’s how they’re building a case against him: Goldman’s longtime archrival investment bank Morgan Stanley now easily dwarfs Goldman in market value, $144 billion to $116 billion, continuing a trend that predates Solomon. That comes amid a slowdown in banking deals, Goldman’s bread-and-butter business, and Solomon’s home turf.

Morgan’s CEO James Gorman deftly expanded the firm’s wealth management operations, which provide steady revenues. Solomon’s effort to diversify was an overindulgence in something called Marcus, a digital retail bank launched by his predecessor Lloyd Bankfein that Solomon made his baby. So far, it’s been a disaster, so much so that Solomon has been forced to scale back, possibly on the way to winding it down.

Goldman, meanwhile, has missed targets in its recent earnings announcements, and more downward surprises could be in store as markets continue to wobble. Bonuses are down, in some places cut in half, albeit from the nosebleed levels of 2021.

Goldman Sachs headquarters
The grumbling about Solomon is spreading to the managing director and partner class.
AFP via Getty Images

Traders did well in 2022 because Goldman’s are particularly adept in profiting off turbulence, but part of their pool is being diverted to bankers to keep them in-house until the deal slowdown ends.

Since Solomon is a banker, he’s also being accused of favoritism, which in truth is a pretty lame charge, since bankers often subsidize trader bonuses when the markets aren’t profitable. Still, the Goldman trading department is powerful and can spark management change, as it has done in the past.

There’s also a question about Solomon’s allegiance to Goldman’s stand-alone culture. In its 153-year existence, Goldman has operated on the assumption that it would be the acquirer in any major strategic acquisition. Solomon’s experience at Bear, then one of the most transactional places on Wall Street, means he could be looking for a deal and not one that keeps Goldman in charge.

Morgan Stanley CEO James Gorman deftly expanded the firm’s wealth management operations, which provide steady revenues.
Morgan Stanley’s James Gorman deftly expanded the firm’s wealth management operations, which provide steady revenues.
AFP via Getty Images

At a time when most Goldman insiders believe he needs to do a “transformational deal,” i.e., something big that allows it to better compete against Morgan Stanley and super banks like JP Morgan, there is speculation that Solomon might allow Goldman to be swallowed whole by, say, a big asset manager or bank if the price was right.

As best I can tell, this grumbling, though real, doesn’t immediately threaten Solomon’s job. Then again, there is something to be said for keeping your producers happy.

Jack Welch, the legendary CEO of General Electric, was a notorious screamer and demanding beyond belief. Yet Welch knew how to nurture his people.

Former General Electric CEO Jack Welch
Jack Welch was a notorious screamer and demanding beyond belief. Yet Welch knew how to nurture his people.
Getty Images

“Jack could chew your ass, then put his arm around you and make you feel great,” one of his longtime executives, Bob Nardelli, once told me.

It’s why so many other talented execs chose to stay around under Welch, abuse and all, and left when his successor took over, watching GE implode from the outside.

Maybe it’s a good time for Solomon to take a page from Welch and start hugging it out.

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