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How rich musicians billed American taxpayers for luxury hotels, shopping sprees, and million-dollar bonuses

18 December 2024 at 02:03
Chris Brown, DJ Marshmello and Lil Wayne collaged with a plane and receipts.

Photo by Ethan Miller/Getty Images; Prince Williams/Wireimage; Photo by PATRICK T. FALLON/AFP via Getty Images; (Photo by Ethan Miller/Getty Images; Celina Pereira for BI

Many musicians struggled during the pandemic. Lil Wayne wasn't one of them. He sold master recordings from his record label's artists for more than $100 million. He was pardoned for felony gun possession in a last-minute action by then-President Donald Trump. He purchased a $15.4 million mansion in the mountains of Los Angeles.

And, as a Business Insider investigation found, he received an $8.9 million grant from a little-known pandemic-relief program that he used to cover more than two years' worth of spending on luxury hotel stays, designer clothes, and travel to and from nightclub appearances around the country.

The rapper, whose real name is Dwayne Carter Jr., spent more than $1.3 million from the grant on private-jet flights and over $460,000 on clothes and accessories, many of them from high-end brands like Gucci and Balenciaga. He billed taxpayers more than $175,000 for expenses related to a music festival promoting his marijuana brand, GKUA, including clothing for artists associated with his record label.

He also used grant money to cover nearly $15,000 worth of flights and luxury hotel rooms for women whose connection to Lil Wayne's touring operation was unclear, including a waitress at a Hooters-type restaurant and a porn actress.

Headline: Lil Wayne

On New Year's Eve 2021, he was scheduled to perform at a concert in Coachella, California.

But shortly before his set was scheduled to start, a concert employee announced that the rapper would be unable to perform "because of the wind and the flights." The crowd booed. (Wind gusts of 20 to 30 mph were reported in Southern California that night, but data from Flightradar24 indicates four other private jets flew the exact route Lil Wayne was scheduled to fly.)

Instead, posts on Instagram suggest he partied that night at a club on Sunset Boulevard with the rapper 2 Chainz.

For expenses related to the concert he never performed, Lil Wayne billed taxpayers nearly $88,000.

Lil Wayne's publicists didn't respond to numerous requests for comment on detailed questions. Reached by text, Lil Wayne made a sexually explicit overture to a reporter and did not respond to questions.

'An abuse of federal resources'

The money came from a program called the Shuttered Venue Operators Grant. Signed into law by Trump in 2020 and championed by lawmakers including Sen. Chuck Schumer, it was established as a lifeline for struggling independent venues and arts groups during the pandemic.

But pop stars used the program as a piggy bank to keep the party going, reporting by Business Insider shows.

The stars' spending took place against a backdrop of massive pandemic-relief fraud. The Paycheck Protection Program and Economic Injury Disaster Loans gave out as much as $200 billion in suspected false claims, losses that combined with false unemployment-benefit claims amount to what the FBI has called the largest fraud in history. Compared with those better-known programs, the Shuttered Venue Operators Grant had relatively strict eligibility requirements.

Still, accounting firms and money managers soon realized their stadium-filling musician clients might be eligible for grant money via their loan-out companies β€” corporate entities used to handle the business of touring. Grants awarded to clients of one high-powered entertainment-business-management firm, NKSFB, totaled at least $207 million, BI previously reported. NKSFB itself collected more than $7 million by helping its clients obtain the grants.

NKSFB's managing partner, Mickey Segal, didn't respond to requests for comment. The firm's lawyer Bryan Freedman said NKSFB doesn't comment on its clients' finances.

Grantees received up to $10 million that they could spend on certain "ordinary and necessary" expenses for their entertainment businesses. They had to make a good-faith statement to the Small Business Administration, which oversaw the program, that the grant was necessary to support the loan-out company's "ongoing operations" and show that the company's revenue had fallen by at least 25% between one quarter of 2019 and the same quarter of 2020.

In a statement, the SBA said it followed the law. But the law directed the SBA to examine revenue, not assets. Musicians with huge bank accounts and multiple mansions were still eligible for the awards as long as their loan-out company's revenue had declined.

Thousands of pages of accounting documents reviewed by Business Insider reveal, for the first time, how some wealthy musicians β€” including Chris Brown, the DJ Marshmello, and members of Alice in Chains β€” spent grants they received through the program.

The documents include detailed records explaining how celebrity musicians spent their grants, as well as correspondence between their accountants and the SBA. Business Insider has verified the authenticity of the documents.

They reveal how artists directed millions in taxpayer funds not toward touring crew members, but instead toward their own bank accounts, luxury purchases, and entertainment expenses β€” often while sitting on substantial wealth from other business ventures.

One top government-accountability expert said some of the spending Business Insider identified was questionable β€” but stopped short of saying it was fraudulent.

"At a minimum, it smells," said David Walker, a former comptroller general of the United States. "Whether it's legal or not is up to a lawyer or ultimately to a court. But it sure smells."

The SBA said it "implemented industry-leading fraud controls."

Sen. Gary Peters, the chair of the Committee on Homeland Security and Governmental Affairs, said celebrity musicians' use of Shuttered Venue grants was "an abuse of federal resources." Business Insider's findings, he added, demonstrate "the need for continued oversight of pandemic-relief programs."

Pandemic relief was intended to help businesses and workers in need, the senator said β€” "not super wealthy celebrities."

An $80,000 birthday party

Lil Wayne wasn't the only one to engage in questionable grant spending. Chris Brown spent his grant on a big paycheck β€” and a big party. Of the $10 million grant Brown's company CBE Touring received, $5.1 million went to Brown personally. He also billed taxpayers nearly $80,000 for his 33rd birthday party.

The blowout, held in a luxe Los Angeles event space, featured a $3,650 LED dance floor and "atmosphere models" β€” nude women in body paint β€” who cost $2,100, according to expense reports and a blog post by the party planner. The bill included more than $29,000 for hookahs, bottle service, "nitrogen ice cream," and damages involving burn holes to rented couches.

While the grant was meant to support live entertainment, Brown also charged $24,000 to the grant for the cost of driving his tour bus from the US to Tulum, Mexico, and back in fall 2020 during a monthlong stay for him and his entourage in the resort town, where he did not perform. He spent several days in Tulum filming a video with Jack Harlow for a joint track, but it's not clear if the rest of the trip was for business or pleasure. And more than $179,000 of the grant went toward a celebrity basketball tournament broadcast on YouTube, including a $20,000 payment to the Indianapolis Colts tight end Mo Alie-Cox, who played on Brown's basketball team.

Brown, his attorneys, and managers did not respond to requests for comment. Representatives for Harlow and Alie-Cox also didn't respond to requests for comment.

Others also paid themselves, taking advantage of an SVOG spending category that Business Insider drew attention to last year: "owner compensation."

The SBA's guidance said artists could use grants paid to their loan-out company to pay themselves as long as the check was no bigger than it was in 2019.

Marshmello, whose real name is Christopher Comstock, received a $9.9 million grant. More than a year later, when the SBA asked for proof of where it went, his business manager Steven Macauley, of NKSFB, responded by saying all the money went into Comstock's pocket.

"Because the beneficiary received 2019 Officer Draws/Salary from 365 Touring International, Inc. in excess of the SVOG Grant Award, we therefore, expensed the entire Grant balance to Payroll," Macauley wrote in an April 2023 letter seen by Business Insider.

In other words, because Comstock made more than $9.9 million from touring in 2019, he was able to award himself the entire grant. In doing so, Comstock paid himself more than any other musician who received grant money.

Comstock's publicists and his manager didn't reply to requests for comment, nor did Macauley.

Artists often paid themselves far more than they paid anyone else involved in putting on their live shows.

Steve Aoki's loan-out company, DJ Kid Millionaire Touring, used $2.4 million in grant money on payroll costs, of which $1.9 million was officer pay. Aoki is the company's only officer. Aoki's publicists didn't respond to requests for comment.

Three of the four members of the rock band Shinedown split at least $2.5 million of their $8.3 million grant. On top of those distributions, Shinedown's four members paid themselves more than $100,000 each out of the roughly $1.2 million of the grant that was allocated to payroll.

The band's 15 touring-production workers, meanwhile, received a combined $650,000 of the grant money β€” less than a single member of the band got. Publicists for the band didn't respond to requests for comment.

Records seen by BI show that a good chunk of the $7.7 million grant to Sremm Touring, the loan-out company for the hip-hop duo Rae Sremmurd, was paid to the rappers Slim Jxmmi and Swae Lee, whose real names are Aaquil Brown and Khalif Brown. The duo's manager, lawyer, and publicists didn't respond to requests for comment.

On March 23, 2022, records show, the Alice in Chains singer and guitarist Jerry Cantrell took in $1.4 million as an "SVOG distribution." The band's drummer, Sean Kinney, received the same amount, and its bassist, Mike Inez, booked half that sum, about $682,000.

In all, $3.4 million of the $4.1 million the grant allotted for payroll went to the three musicians at the top.

Like other grant applicants, AIC Entertainment β€” the three band members' touring business β€” had to tell the government only that the money was "necessary." But the month before they took their grant payments, the band members recorded about $48 million in income from selling the copyrights on their catalog. They made hundreds of thousands of dollars more from merchandise sales and other profit distributions in 2022.

The band spent some money to pay its staff. It paid hundreds of thousands of dollars to sound-equipment-rental firms, videographers, and managers. But the precarious nature of working in the live-entertainment business didn't change for some of its employees. Scott Dachroeden, a guitar tech and tour photographer who had worked with the band for years, received a cancer diagnosis in late 2022. The band, which records show did not spend grant money on benefits like health insurance, circulated a GoFundMe page on Twitter.

"He has no health insurance and now cannot work to pay his bills," the page said. The band's lead singer said on Facebook that Alice in Chains helped out behind the scenes, but a person familiar with the situation said that Dachroeden didn't get much, if any, money from the band during the pandemic and that after his diagnosis, the band connected Dachroeden with a charity that helps with medical bills. Dachroeden died soon after his diagnosis.

Alice in Chain's publicists and manager didn't respond to requests for comment.

Supporting 'middle-class people'

The Shuttered Venue Operators Grant program was pitched to Americans as a way to ensure that arts groups would still exist after the pandemic.

In an interview with James Corden on "The Late Late Show," Chuck Schumer cast it as a way to protect "middle-class people" and "young artists" while pandemic restrictions forced closures.

Grant money would "keep these folks going" so that "these live venues will be out there bigger and better than ever" after the restrictions lift, Schumer said. Schumer's press office and chief of staff didn't respond to comment requests.

Chuck Schumer accepts a Grammy on the Hill
In 2023, Sen. Chuck Schumer received a Grammy on the Hill for his work on the Shuttered Venue Operators Grant. "I believe in the power of the music industry," he said at the awards event. "I will always, always fight, tooth and nail, Brooklyn style, for you."

Paul Morigi/Getty Images

Ultimately, more than 13,000 arts groups received grants, including some who say they wouldn't still exist otherwise.

"When the shutdowns happened, it was existential. Immediate crisis," said Brandy Hotchner, the founder of Arizona Actors Academy, an acting school in Phoenix. The grant of less than $120,000 the group received, she said, "utterly saved us."

Musicians weren't explicitly categorized as eligible β€” and initially, the SBA interpreted the law to mean that artists' loan-out companies couldn't qualify for the grant either.

By mid-December 2021, for reasons BI was unable to determine, the agency had reversed that decision, according to an internal memo seen by Business Insider, which cleared the way for federal funding to flow to wealthy artists. The SBA didn't respond to a question about why it reversed itself.

The business-management firm NKSFB also made millions from the program.

Partners at the firm initially believed that their celebrity clients didn't qualify for the grants. At least one partner feared that applying could be perjury, and another, Rob Salzman, thought the whole thing was "bullshit," a court document said.

Later, in an interview with Billboard magazine as part of its list of "Top Business Managers," Salzman said that applying for the grants was an example of the firm's "outside-the-box" thinking.

The change of heart led to a big payday. Court documents show the firm made at least $7.5 million in fees on the grants. Salzman didn't respond to requests for comment.

"NKSFB, one of the most respected business management firms in the world, does not comment on its clients' financial information," said Freedman, the firm's lawyer. "Based on the uninformed questions that BI has asked, it is clear it has little to no understanding on this subject."

Other white-collar professionals also outearned techs and roadies. Lawyers at the celebrity-favorite firms Greenberg Traurig and Grubman Shire Meiselas & Sacks received up to 5% of their clients' grants. Brown's manager took 7% of his grant, and Shinedown's managers received 20% of theirs. A spokesperson for Greenberg Traurig didn't answer questions about the firm's actions. Partners at Grubman Shire didn't respond to emails or phone calls.

Over $2.1 million of Lil Wayne's grant paid off a debt to a former manager, Cortez Bryant. Another $300,000 went to a former accountant, and his manager at the time, Mack Maine, whose real name is Jermaine Preyan, took $1.7 million. All told, roughly $5.3 million went to managers, accountants, and attorneys as fees and commissions β€” more than 13 times the amount Lil Wayne paid the drummer, sound techs, and other contractors who helped put on his live shows.

Bryant and Preyan didn't respond to requests for comment.

Lil Wayne performing
Lil Wayne used federal funds to buy clothes for himself and several of his associates to wear at a music festival promoting his marijuana brand, GKUA. Business Insider reported in March that the SBA didn't question his claim that he ran a drug-free workplace, even though he often smokes weed onstage.

Rich Fury/Getty Images

A music-industry insider who learned from Business Insider about NKSFB's wave of grant applications said he was stunned the Small Business Administration approved them.

"It never crossed my mind that we should be trying to get this money for my artists," said the insider, an artist manager who was involved in lobbying lawmakers to pass the legislation and who asked not to be named because of the issue's sensitivity.

"I was in countless conversations," he said. "No one ever discussed artists collecting this money. It never came up."

Hotchner, the acting-school founder, said she was "speechless" upon learning about Business Insider's reporting on how celebrity musicians spent their grants. Though the amount of money sent to pop stars is small relative to the overall amount of money disbursed through the grant program, she said she worried it would taint the public's perception of government support for the arts β€” support that's still needed.

"I will never forget how hard-fought-for this funding was," she said. "It's such a disappointment."

'Shut up, sit down. Process the file.'

Soon after Congress created the program, lawmakers began pressing the Small Business Administration to get money out the door. By mid-June 2021, more than 200 members of Congress had signed two separate letters demanding the agency disburse the funds expeditiously, saying arts organizations could go out of business without immediate relief.

The SBA said congressional pressure "was not the driving factor" behind changes that sped up the grant process and merely "coincided" with changes it was already making.

The agency hoped to balance a quick release of funds with a desire to protect against large-scale fraud that had plagued other pandemic programs. Its compromise was to relax some anti-fraud controls on the front end of the grant process, a report from the SBA's inspector general said. Instead, it planned to verify whether the grantees were actually eligible and how the money was spent after distributing the grants. In its response to the inspector general's report, the agency said it disagreed with the conclusion that changes to how it evaluated applications amounted to "weakened" fraud controls.

The approach had mixed results. The Government Accountability Office said that it submitted three phony applications to the program and that all three were rejected. But some of the eight current and former SBA workers who spoke to Business Insider said they felt the agency was too permissive and ignored or misinterpreted relevant rules β€” for example, allowing grantees to spend federal funds on thousands of dollars' worth of alcohol.

"They were just trying to get money out. If it was fraudulent, if it was not eligible β€” whatever," a person who worked on the grants said. They asked not to be named because they feared retaliation, but their identity is known to Business Insider.

The SBA's inspector general criticized the agency's decision to spot problems after the recipients already spent the money, saying it "does not provide sufficient fraud prevention and comes at a point when funds are potentially unrecoverable." Some SBA employees said that as the program began to wind down, they were pressured to certify recipients' compliance with program rules rather than dig through detailed records of their spending.

The SBA said in September it had recouped $43 million worth of the grants β€” an amount that hadn't increased since July. It's not clear how the agency recovered that money. While the SBA has a team to recover wrongfully awarded grants, an organizational chart suggests that as of late September it hadn't assigned any staff to it. Documents obtained in a public-records request said $6 billion worth of grants remain under review for compliance with program rules.

The SBA said "some" of the grants Business Insider mentioned in its reporting "remain open due to ongoing third-party audits that the Agency is resolving." The agency spokesperson didn't respond to questions about recoupment and didn't respond to a follow-up question asking which grants remain unresolved.

Four people who worked on the program said they tried to raise concerns about grantees' eligibility and spending to supervisors, to no avail. "I was never so disappointed in my fellow man than in that program," one of the people said. "The graft was unbelievable."

Two of those people said they were frustrated the agency wasn't doing more to investigate possible misspending and recover funds.

"Everybody kept saying shut up, sit down. Process the file," said a current SBA employee who asked not to be named because they're not authorized to speak to the press.

This person said that while some issues stemmed from the dwindling number of SVOG employees drowning in documentation, other problems arose because of the way the program was administered. "It was our fault because we threw this thing together in five seconds," they said.

An SBA spokesperson defended its processes. "By design, the vast majority of processing staff did not have access to the complete results of fraud checks and, therefore, are not positioned to comment on the internal review process or its outcomes," the spokesperson said in an email.

"Where credible evidence suggests funds were misspent or a grantee misrepresented their expenditures to SBA, the agency's robust fraud and waste oversight structure reviewed such allegations," the spokesperson said. "When substantiated, SBA and its law enforcement partners vigorously prosecute suspected wrongdoing. As a matter of policy, the SBA cannot comment on specific investigations or law enforcement action, whether planned or ongoing."

Meanwhile, the government has recovered at least some money from one musician.

As pandemic restrictions faded, Chris Brown returned to performing. In early 2022, he announced a 27-stop nationwide tour and launched a variety of side projects, including a novelty cereal called Breezy's Cosmic Crunch and an NFT collection.

While the Small Business Administration was disbursing money to Brown's touring company, federal and state tax authorities were becoming very interested in his finances.

In early 2021, the IRS notified Brown that he owed $3.2 million in unpaid taxes. In 2022, the IRS determined that Brown owed an additional $2.2 million, while California's Franchise Tax Board found that Brown hadn't paid $1.3 million in state taxes.

He settled these debts in April last year β€” but not before American taxpayers had unwittingly paid $80,000 for his birthday party.

Have a tip? Know more? Reach Jack Newsham via email ([email protected]) or via Signal (+1-314-971-1627). Do not use a work device.

Read the original article on Business Insider

Public salary data reveals how much xAI pays some workers compared to OpenAI

Sam Altman and Elon Musk
Salary data shows that both Sam Altman's OpenAI and Elon Musk's xAI pay workers well above the industry standard.

Allison Robbert-Pool/Getty Images; Joel Saget/AFP via Getty Images; iStock; Rebecca Zisser/BI

  • In a lawsuit, Elon Musk alleged OpenAI overpays as part of a pattern of anticompetitive practices.
  • An analysis of salary data found that both companies offered pay well above typical industry wages for some roles.
  • xAI paid one worker double the industry standard wage for the role; one OpenAI worker made over three times as much.

As the artificial-intelligence industry continues to attract attention, power, and billions of dollars in funding, two major players β€” Elon Musk's xAI and Sam Altman's OpenAI β€” are locked in a contentious battle over talent. Musk filed a lawsuit in August accusing Altman's company of offering "lavish compensation" to "starve competitors."

To examine Musk's claims about salaries, Business Insider analyzed wage data from specialty visa applications for each company from 2024. While both offered compensation well above typical industry wages for the handful of roles for which data was available, OpenAI paid some of its staff an even higher premium over standard rates.

The documentation that companies must file when hiring foreign workers on specialty visas like the H-1B provides a window into otherwise private compensation data at both firms and gives rare insight into the expensive war for AI talent.

xAI is only a fraction of the size of OpenAI; the company employs about 100 workers, compared with about 3,000 at OpenAI, PitchBook reported.


xAI reported pay data for 10 worker applications, compared with OpenAI's 86 worker applications. The companies paid 37% and 87%, respectively, above the typical industry wage β€” or "prevailing wage" β€” for the roles surveyed, based on data from US Customs and Immigration Services.

The prevailing wage is determined by the Department of Labor. It represents the average wage paid to workers in a particular occupation within a defined geographic area. Employers who hire workers on specialty visas like H-1Bs must pay them at least as much as the prevailing wage.

The data found that pay for the 10 xAI roles with specialty visa applications ranged from $250,000 to $500,000. At the top end, xAI paid one worker nearly double the prevailing wage for the role of principal machine learning engineer.

Among the 86 roles with available data on specialty visa applications, OpenAI paid between $145,000 and $530,000, with one member of the company's technical staff earning more than three times the prevailing wage for the role.


In the table above, BI compared the average salary for each job title included in the USCIS data for the two companies to the average prevailing wages for those titles.

The data offers some insight into how Musk's company approaches compensation amid a legal battle that has reignited the feud between Musk and Altman.

The pair cofounded OpenAI in 2015, and Musk was one of several Silicon Valley investors to collectively pledge $1 billion to the venture. He resigned from OpenAI's board of directors in 2018, citing a potential conflict of interest due to Tesla's work with artificial intelligence.

Since then, Musk has repeatedly bashed OpenAI and Altman, saying the company is "not what I intended at all." Musk sued OpenAI and its CEO earlier this year but withdrew the lawsuit, only to file a new suit in August. In addition to claims about OpenAI's allegedly anticompetitive practices, lawyers for Musk said that he was "deceived" and "manipulated" into cofounding the company.

"This suit is the latest move in Elon Musk's increasingly blusterous campaign to harass OpenAI for his own competitive advantage," OpenAI's attorneys wrote in motion to dismiss Musk's latest lawsuit. Since launching xAI Musk "has been trying to leverage the judicial system for an edge," they added.

Musk, Altman, and representatives for xAI and OpenAI did not respond to requests for comment.

Emails between Musk, Altman, and other OpenAI workers between 2015 and 2016 showed that Musk repeatedly emphasized the importance of recruiting top AI talent.

In the exchanges, which were included as part of Musk's most recent lawsuit, Musk wrote that recruitment should be OpenAI's "most important consideration," and the company should do "whatever it takes to bring on ace talent."

In April, Musk said xAI brought over a Tesla engineer after OpenAI began "aggressively recruiting" workers from the electric-car maker. Based on a review of LinkedIn profiles, xAI has hired at least nine former OpenAI employees, including xAI cofounder Igor Babuschkin, since Musk launched xAI in 2023.

Do you work for xAI or OpenAI? Reach out to the reporter via a non-work email and device at [email protected] or 248-894-6012

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Luigi Mangione came from privilege. Then his spine gave out, he went off the grid, and he got a gun.

Luigi Mangione.

Photo by Altoona Police Department via Getty Images; BI

For years before he was accused of killing the CEO of one of America's largest health-insurance companies, Luigi Mangione suffered from debilitating pain that doctors didn't seem able to fix.

He detailed the pain, and what he felt to be the healthcare system's inadequate response, in dozens of posts on Reddit between 2018 and 2024.

None of them, though, mention UnitedHealthcare or its CEO, Brian Thompson, whom he's now accused of killing. And none of the posts blame UnitedHealthcare β€” or Thompson β€” for his health issues. The only insurer mentioned is Blue Cross Blue Shield, in a brief post describing how it covered a medical test.

But his posts paint a portrait of someone whose pain and recovery led him to put "my life on hold in my 20s." And the experience appears to represent a significant β€” and excruciating β€” engagement with the American healthcare system. Like most young Americans, if Mangione was covered by his parents' health-insurance plan, he likely would have aged out when he turned 26 in May, under rules set by the Affordable Care Act.

In handwritten notes from 2019 reviewed by Business Insider, Mangione wrote that he had spondylolisthesis β€” severe slippage of parts of the spine due to joint deterioration.

In 2022, he described "near-constant burning/twitching in both ankles/calves." By 2023, he wrote on Reddit, he'd been experiencing "back and genital pain" on and off for a year, including numbness in his groin. (Details shared by the Reddit account match biographical details about Mangione sourced from public documents.)

He underwent surgery later that year. An X-ray image Mangione posted on social media depicted a spinal fusion, with rods and screws reinforcing the position of his bones. At first, he appeared jubilant β€” his pain was gone. But by June this year, he was castigating doctors as "basically worthless" on X.

Public records, social-media posts, and interviews indicate that Mangione cut off contact with family and friends earlier this year. Months later, police say Mangione murdered Thompson on a Manhattan sidewalk, wielding a gun assembled from 3D printed parts.

The scion of a prominent Baltimore family, Mangione was educated at elite schools. Friends say they're now hard-pressed to recognize the kind, unassuming, and whip-smart person they know.

A classmate who led a student group at the University of Pennsylvania with Mangione in 2016 and 2017 said she recalled him as humble, helpful, and immensely driven. She asked not to be named given the intense focus on Mangione, but BI has confirmed her identity.

"I would set my sister or friend up with him," she said. "Just knowing his personality, I would completely trust him. Even knowing what I know now, if he 100% did it, I would feel completely safe being alone in a room with him."

A privileged youth

Mangione grew up in Towson, Maryland, about 10 miles outside Baltimore. His grandfather, Nick Mangione Sr., was a self-made multimillionaire, The Baltimore Banner reported. The elder Mangione, who died in 2008, owned and operated a sprawling portfolio of country clubs, nursing homes, and local radio stations. The younger Mangione is one of 37 grandchildren, part of a large family whose ranks also include a Maryland lawmaker.

Mangione's parents and immediate family did not respond to requests for comment.

Thomas J. Maronick Jr., an attorney and longtime host at one of the family's radio stations, told BI that the family was "very influential" in the local community, which was reeling from the news of Mangione's arrest.

"When you think of the Mangione family, you think of an esteemed family that has done a lot for the community," Maronick said on a phone call. "When I first heard the name, I thought it had to be a different family. It was very out of character for anything I've ever known about the family."

Mangione appeared well positioned to carry on the family's name.

He attended the Gilman School, a prestigious Baltimore-area all-boys school where tuition runs over $37,000 a year. There, he cofounded AppRoar Studios, a company that released a phone game; was in the school's robotics club; and graduated as valedictorian of the class of 2016.

Mangione was "very into sports" and "very social," a high-school classmate told BI. The classmate asked not to be named, but BI has verified their identity. "He was easily one of the smartest in our class. I never would have thought he would have been a part of this," the classmate added.

A yearbook entry for Luigi Mangione, with a list of achievements, a personal statement from Mangione thanking friends and family, and a collection of photos of him with friends and family.
Luigi Mangione's entry in the Gilman School class-of-2016 yearbook.

Anonymous

He went on to the University of Pennsylvania, graduating in four years with both a bachelor's and a master's degree in computer science, a university spokesperson said. He cofounded a video-game-design club and was inducted into the computer-engineering department's Eta Kappa Nu society for students at the top of their class, according to blog posts and the society's website.

He appeared active in his fraternity, photos posted on Instagram show.

Still, his health appeared to drag him down. In posts on Reddit, he described experiencing "brain fog." His "cognitive decline" started after he contracted Lyme disease at 13, he wrote, and worsened after his "very tame" but sleepless fraternity initiation. The fraternity did not respond to a request for comment.

He considered dropping out of college, he wrote, and felt that his condition restricted him to "what feels like 10% of a college experience."

"My symptoms were very minor at first and I was able to excel in high school, but the symptoms worsened exponentially last year," he wrote in 2018. "It's absolutely brutal to have such a life-halting issue."

In 2019, Mangione spent three months as a counselor for a Stanford summer program for high schoolers. He left a positive impression on the students, one of them said in posts on Instagram.

After college, he got a job as a data engineer at TrueCar, an online vehicle-purchase platform, and was regularly promoted, according to his LinkedIn profile and a former colleague.

By early 2022, he had moved to a coliving space in Hawaii called Surfbreak, according to photos posted on Instagram. R.J. Martin, the founder of Surfbreak, told Honolulu Civil Beat that Mangione founded a book club at the residence. On Martin's suggestion, one of the books discussed by the club was the Unabomber Ted Kaczynski's manifesto, Martin said.

Kaczynski, a Harvard-trained mathematician, lived in the wilderness and conducted a 17-year mail-bombing campaign against people he blamed for advancing technology at the expense of the natural environment.

Mangione gave the book four out of five stars on his Goodreads account.

"While these actions tend to be characterized as those of a crazy luddite, however, they are more accurately seen as those of an extreme political revolutionary," Mangione wrote in his review of the book.

The book club dissolved shortly thereafter, Martin told Civil Beat, amid discomfort with the manifesto.

Mangione detailed his back-pain journey on social media

In Hawaii, Mangione experienced another health setback. He'd had mild back pain since he was a child, but while surfing in early 2022, he "experienced sciatica for the first time," he wrote on Reddit. "A few weeks later I slipped on a piece of paper and my right glute locked and right leg shut down for a week. Couldn't support any weight on it."

Mangione, writing under the username Mister_Cactus, was a frequent poster in the spondylolisthesis subreddit. He exchanged notes with other people dealing with the condition and advised one poster how to persuade medical professionals to take symptoms seriously in the face of some doctors whose perspectives he decried as "nonsense."

"Tell them you are 'unable to work'/do your job. We live in a capitalist society," he wrote. "I've found that the medical industry responds to these key words far more urgently than you describing unbearable pain and how it's impacting your quality of life."

Martin told Honolulu Civil Beat that Mangione struggled with back pain throughout his time living at Surfbreak in 2022. In a separate interview, with The New York Times, Martin said that Mangione told him the lower vertebrae of his spine were nearly "a half-inch off" and had impeded his romantic life.

But by the next year, Mangione wrote that surgery had helped resolve his pain, at least for a time.

In one post, dated October 2023, he said back-fusion surgery had been "a success." After a week, he had no use for pain medication, he wrote.

"The surgery wasn't nearly as scary as I made it out to be in my head, and I knew it was the right decision within a week, and that I won't have to bother with injections or future surgery for many years," he wrote.

Mangione went dark earlier this year

In 2023, Mangione stopped working at TrueCar. The company laid off more than 100 employees that year. BI was unable to confirm the circumstances under which he left the company.

He appeared to spend early 2024 traveling around Asia, according to Reddit posts. In April, he emailed the author of a Substack he followed to say he would be in Japan through the beginning of May, according to a screenshot of the email the blogger shared on X.

His final Reddit post, in May, was to the Kaczynski subreddit; he shared a video lambasting Chinese social-media culture. On X, his final posts, on July 8, revealed a disenchantment with both the Democratic and the Republican political parties and support for Robert F. Kennedy Jr. The previous month, he'd reposted another user's skepticism with doctors.

"My experience with the medical profession β€” and yours is probably similar β€” is that doctors are basically worthless unless you carefully manage them, and 2/3 of them are worthless even in that case," the post said.

Afterward, both accounts went dark.

Maronick, the family friend, told BI that there had "been some rumblings" that Mangione hadn't been in touch with his family in "quite some time."

In July, an apparent friend posted on X suggesting that Mangione hadn't responded to messages in months.

"You made commitments to me for my wedding and if you can't honor them I need to know so I can plan accordingly," the user wrote to Mangione. (The user could not be reached for comment.)

In recent months, one of Mangione's cousins began reaching out to Mangione's friends to ask whether anyone had heard from him, his high-school classmate told BI. The classmate texted Mangione but never heard back.

Mangione's mother filed a missing-persons report in San Francisco on November 18, writing that she hadn't seen her son since July, according to the San Francisco Standard. In a statement released on Monday, a group of Mangione's cousins wrote they were "shocked and devastated by Luigi's arrest."

"We offer our prayers to the family of Brian Thompson and we ask people to pray for all involved," the statement said.

Thompson was shot and killed on December 4 ahead of an annual investors meeting for UnitedHealth Group. Police say the bullet casings found on the scene had the words "delay," "deny," and "depose" written on them β€” which some have taken to be a reference to a book, "Delay, Deny, Defend," which details how insurance companies avoid paying medical bills.

Pennsylvania police, acting on a call from a McDonald's employee, found Mangione eating at a franchise location in Altoona. They say he had in his backpack a gun and a handwritten document expressing "ill will toward corporate America," with the phrase "these parasites had it coming."

Police arrested Mangione on forgery and gun charges. He is fighting extradition to New York, where he is expected to be charged with second-degree murder, a warrant obtained by BI shows. He has not formally entered a plea.

Thomas Dickey, an attorney representing Mangione, said in an interview on Tuesday that he had not seen "any evidence yet" that would implicate Mangione.

"I don't even know if this is him or whatever," he said. "So we're going to test those waters and give the government a chance to bring some evidence forward." Dickey did not immediately respond to a request for comment.

Mangione's high-school classmate said that nobody they knew recognized Mangione from the photos police released before his arrest. After law enforcement named Mangione as a suspect, though, "the eyebrows made sense," the classmate said.

At his initial court appearance Monday, a judge asked Mangione whether he was in touch with his family, multiple reports from outlets present at the arraignment said.

"Until recently," he responded.

Ana Altchek, Laura Italiano, and Natalie Musumeci contributed reporting.

Read the original article on Business Insider

Luigi Mangione's deleted social media posts show support for Robert F. Kennedy Jr., skepticism of doctors

10 December 2024 at 07:42
Luigi Mangione is seen in a holding cell after being taken into custody on December 9, 2024 in Altoona, Pennsylvania
Luigi Mangione is seen in a holding cell after being taken into custody on December 9, 2024 in Altoona, Pennsylvania

Altoona Police Department via Getty Images

  • Luigi Mangione, a 26-year-old tech worker, was charged with the killing of UnitedHealthcare CEO Brian Thompson.
  • The University of Pennsylvania graduate reportedly stopped speaking with friends and family after back surgery last year.
  • Deleted social media posts show skepticism toward doctors, Donald Trump, and Joe Biden, and support for RFK Jr.

Luigi Mangione, the man charged with the murder of UnitedHealthcare CEO Brian Thompson, seemingly supported Robert F. Kennedy Jr., appeared to harbor frustrations with the medical field, and expressed skepticism toward both Donald Trump and Joe Biden, deleted posts on X show.

Mangione, a 26-year-old software developer who reportedly fell out of touch with friends and family after back surgery last year, reposted Edward Snowden's suggestion that Democrats should nominate Robert F. Kennedy Jr. for president following Joe Biden's disastrous debate performance in June.

darkly amusing to watch panicked dems suddenly searching under the couch cushions for a candidate when kennedy is literally standing right there

β€” Edward Snowden (@Snowden) July 4, 2024

The deleted posts, which Business Insider viewed on Archive.org, are among the most recent online clues about Mangione found so far.

Mangione has been described as both an "anti-capitalist" and a member of the "online right." His deleted posts support the idea that his worldview was influenced by reactionary right-wing thinkers.

In another deleted post from May, Mangione reposted another user's skepticism of doctors, adding detail to reports about Mangione's dissatisfaction with the US healthcare system. A former roommate from Hawaii told the Honolulu Civil Beat that Mangione had chronic back pain.

"My experience with the medical profession β€” and yours is probably similar β€” is that doctors are basically worthless unless you carefully manage them, and 2/3 of them are worthless even in that case," the post said.

The author of the original post, Zero HP Lovecraft, calls himself a "fascist hipster." His Substack shows he submitted a short story for the Passage Prize, an award run by a publisher known for publishing reactionary and fascist authors.

Mangione also castigated "both parties" in a reply to writer Nate Silver.

"Both parties - Trump with his refusal to accept the results of an election, and Biden with his refusal to accept his age and step down - are simultaneously proving how desperately individuals will cling to power," Mangione posted. He also referred to term limits as "critical."

In June, he reposted a suggestion by Richard Hanania, an author critical of "wokeness," that Trump thought Christians were delusional.

Trump clearly sees Christians the way most adults see kids who still believe in Santa Clause. pic.twitter.com/qZMvbR3yK7

β€” Richard Hanania (@RichardHanania) June 5, 2024

In July, Mangione also reposted a description of Project 2025, a roadmap for Trump's second term developed by the right-wing think tank The Heritage Foundation, as "qanon but for redditors."

Read the original article on Business Insider

What we know about Luigi Mangione, the Ivy League grad charged with murder in UnitedHealthcare CEO's killing

A yearbook entry for Luigi Mangione, with a list of achievements, a personal statement from Mangione thanking friends and family, and a collection of photos of him with friends and family.
Luigi Mangioni's entry in the Gilman School class of 2016 yearbook.

Anonymous

  • Luigi Mangione has been charged with murder in UnitedHealthcare CEO Brian Thompson's killing.
  • Mangione, an Ivy League graduate from a wealthy family, left an online trail before his arrest.
  • He founded an app, talked about AI on X, and read the Unabomber Manifesto.

Luigi Mangione, the 26-year-old Ivy League graduate charged with murder in the fatal shooting of UnitedHealthcare CEO Brian Thompson, has a vast online trail.

Police arrested Mangione in Pennsylvania on December 9. He initially faced local gun and forgery charges. He's expected to be extradited to New York.

New York court documents show that in addition to one count of murder, he also faces two counts of second-degree criminal possession of a weapon, one count of second-degree possession of a forged document, and one count of third-degree criminal possession of a firearm.

Here's what to know about Mangione.

Mangione attended elite schools

Mangione graduated from the University of Pennsylvania in 2020.

He achieved a Bachelor of Science in engineering with a major in computer science and a minor in mathematics. He also received a Master of Science in engineering the same year with a major in computer and information science, a university spokesperson told Business Insider.

Before that, he attended Gilman School, an elite all-boys preparatory school in Baltimore. His yearbook entry, obtained by BI, says he was involved in robotics and Model United Nations.

In his valedictorian speech, Mangione praised classmates for "challenging the world" and thanked parents for sending their children to the fee-paying school, which he described as "far from a small financial investment."

He favorably reviewed the Unabomber Manifesto

On Goodreads, Mangione reviewed Ted Kaczynski's "Industrial Society and Its Future" book, also known as The Unabomber Manifesto, in early 2024. He gave it four out of five stars.

"He was a violent individual β€” rightfully imprisoned β€” who maimed innocent people," Mangione wrote. "While these actions tend to be characterized as those of a crazy luddite, however, they are more accurately seen as those of an extreme political revolutionary."

Mangione's review of the manifesto also quoted another online comment about the book, which appears to have originated on Reddit, praising the use of violence "when all other forms of communication fail."

"'Violence never solved anything' is a statement uttered by cowards and predators,'" Mangione quoted.

He founded an app and worked in tech

In 2015, while in high school, Mangione founded a company called AppRoar Studios. AppRoar released an iPhone game called "Pivot Plane" that's no longer available, but a reviewer in 2015 said it was "a fun little arcade game brought to you by 3 high school juniors."

He lived in a co-living space in Hawaii as recently as 2023.

He posed for photos indicating he participated in Greek life at the University of Pennsylvania.

The fraternity chapter represented in his photos couldn't be reached for comment.

A blog post on the University of Pennsylvania's website that was removed on December 9 said he cofounded a video game design club there.

Stephen Lane, a professor of video game design at the Ivy League university who didn't advise the club, told BI that "the fact he took the initiative and started something from nothing, that means at least in the context of Penn, that's a pretty good thing." He added, however, that Thompson's shooting was "obviously not a good thing."

Mangione's LinkedIn page says he worked as a data engineer at the vehicle shopping company TrueCar starting in 2020.

A TrueCar spokesperson told BI that Mangione hadn't worked for the company since 2023.

Online breadcrumbs and roommate say he dealt with back pain

At the top of Mangione's profile on X β€” formerly Twitter β€” is a triptych of three images: a photo of himself, smiling, shirtless on a mountain ridge; a PokΓ©mon; and an X-ray with four pins or screws visible in the lower back.

The PokΓ©mon featured in his cover image is Breloom, which has special healing abilities in the games.

Some of the books reviewed on Mangione's Goodreads account are related to health and healing back pain, including "Back Mechanic: The Secrets to a Healthy Spine Your Doctor Isn't Telling You" and "Crooked: Outwitting the Back Pain Industry and Getting on the Road to Recovery."

R.J. Martin, the founder of the co-living space in Hawaii, told the Honolulu Civil Beat that Mangione had suffered back pain from a misaligned vertebra that was pinching his spinal cord.

Martin told CNN that after leaving Hawaii, Mangione texted him to say he'd undergone surgery and sent him X-rays.

"It looked heinous, with just, giant screws going into his spine," Martin told the outlet.

It's not immediately clear whether the surgery was related to UnitedHealthcare.

Josiah Ryan, a spokesperson for the co-living space founder, told The Wall Street Journal that Mangione stopped replying to texts about six months ago and "sort of disappeared."

A YouTube spokesperson said that the platform had terminated Mangione's three accounts, adding that they had not been active for about seven months.

A senior police official told NBC New York on December 12 that Magione was never a UnitedHealthcare client and may have targeted Thompson because of the insurer's large size and outsize power. That same day, The Wall Street Journal reported that a company spokesperson said Magione was not a client.

Mangione was interested in AI

On his X account, Mangione posted and amplified posts about technological advances such as artificial intelligence. He also posted about fitness and healthy living.

He frequently reposted posts by the writer Tim Urban and the commentator Jonathan Haidt about the promise and perils of technology.

He also appeared to be a fan of Michael Pollan, known for his writing about food, ethics, and lab-grown meat.

On Goodreads, he praised Urban's book "What's Our Problem?: A Self-Help Book for Societies," describing it as "one of the most important philosophical texts of the early 21st century."

Urban posted to X on December 9: "Very much not the point of the book."

He was previously accused of trespassing

Before his arrest, Mangione had at least one encounter with the legal system. Hawaiian court records indicate that in 2023, he was accused of entering a forbidden area of a state park.

Mangione appears to have paid a $100 fine to resolve the matter.

Mangione comes from a wealthy and influential Baltimore family

Mangione is one of 37 grandchildren of the late Nick Mangione Sr., a prominent multimillionaire real-estate developer in Baltimore who died in 2008, The Baltimore Banner reported. Nick Mangione Sr. had 10 children, including Louis Mangione, Luigi Mangione's father.

Members of the Mangione family own the Turf Valley Resort in Ellicott City, Maryland, and Hayfields Country Club in Hunt Valley, Maryland.

One of Luigi Mangione's cousins is the Republican Maryland state legislator Nino Mangione, the Associated Press reported.

Representatives for Nino Mangione's office, in a statement to BI, declined to comment on the news of Luigi Mangione's arrest.

"Unfortunately, we cannot comment on news reports regarding Luigi Mangione," the statement read. "We only know what we have read in the media. Our family is shocked and devastated by Luigi's arrest. We offer our prayers to the family of Brian Thompson and we ask people to pray for all involved. We are devastated by this news."

The Mangione family has donated more than $1 million to the Greater Baltimore Medical Center, where all of Nick Mangione Sr.'s grandkids, including Luigi Mangione, were born, the Banner reported.

A public filing from 2022 for the nonprofit Mangione Family Foundation lists Louis Mangione as vice president.

He was arrested while on his laptop at a McDonald's, the police said

When the police in Altoona, Pennsylvania, responded to a McDonald's after a call about a suspicious person, they found Mangione sitting at a table looking at a silver laptop and wearing a blue medical mask, a criminal complaint said.

The complaint said that when asked for identification, Mangione gave police officers a New Jersey driver's license with the name "Mark Rosario."

When an officer asked Mangione whether he'd been to New York recently, he "became quiet and started to shake," the complaint said.

It added that Mangione correctly identified himself after officers told him he could be arrested for lying about his identity.

When asked why he lied, Mangione replied, "I clearly shouldn't have," the complaint said.

His motive is still not known, but police are analyzing his so-called manifesto

An internal NYPD report obtained by The New York Times said Mangione "likely views himself as a hero of sorts who has finally decided to act upon such injustices."

Mangione "appeared to view the targeted killing of the company's highest-ranking representative as a symbolic takedown and a direct challenge to its alleged corruption and 'power games,' asserting in his note he is the 'first to face it with such brutal honesty,'" according to the NYPD report by the department's Intelligence and Counterterrorism Bureau, the Times reported.

Moments before the December 10 extradition hearing began, Mangione, handcuffed and wearing an orange prison jumpsuit, shouted out to the press as Pennsylvania police escorted him into the courthouse.

Mangione yelled out something partially unintelligible, saying something was "completely out of touch" and "an insult to the American people." He also shouted that something was a "lived experience" as a group of officers led him into the courthouse.

NYPD Chief of Detectives Joseph Kenny told NBC New York that Mangione had prior knowledge that UnitedHealthcare would be having its annual conference in New York City.

Mangione has retained a high-profile New York attorney

Thomas Dickey emerged as Mangione's attorney in Pennsylvania after his arrest in Altoona on December 9.

During a December 10 hearing at Pennsylvania's Blair County Courthouse, Dickey told the judge that Mangione was contesting his extradition to New York City.

Dickey later told reporters that Mangione would plead not guilty to all the charges in Pennsylvania. During an interview with CNN, Dickey said he expected Mangione to plead not guilty to the second-degree murder charge in New York and that he hadn't seen evidence that authorities "have the right guy."

Karen Friedman Agnifilo will represent Mangione in New York, a representative for Agnifilo Intrater LLP confirmed to Business Insider on Sunday.

Friedman Agnifilo worked as the chief assistant district attorney at the Manhattan District Attorney's Office from 2014 to 2021. She pivoted to private practice in 2021.

Do you know Luigi Mangione? Have a tip? Reach out to [email protected].

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Luigi Mangione update: Suspect in UHC CEO shooting hires noted NY lawyer who's married to Diddy's attorney

Luigi Mangione
Luigi Mangione is led into a police car after his arrest for the murder of UnitedHealthcare CEO Brian Thompson.

Jeff Swensen/Getty Images

  • UnitedHealthcare CEO Brian Thompson was fatally shot outside a Manhattan hotel on December 4.
  • Police arrested Luigi Mangione, who now faces a murder charge for the killing.
  • Mangione has hired prominent New York lawyer Karen Friedman Agnifilo to defend him.

Luigi Mangione, the man police say murdered UnitedHealthcare CEO Brian Thompson, has hired high-profile attorney Karen Friedman Agnifilo.

Friedman Agnifilo is married to Marc Agnifilo, lead lawyer defending Sean "Diddy" Combs against federal sex-trafficking charges.

The Combs and Mangione cases will be handled by the same Manhattan law firm, Agnifilo Intrater LLP, and can be expected to dominate legal news headlines in the coming year.

In getting retained, Friedman Agnifilo bested some half-dozen other prominent attorneys who had been interviewed by the Mangione family last week, according to multiple sources who asked not to be named due to their connection with the case.

Friedman Agnifilo last week left her previous law firm, Perry Law, to join her husband's firm as counsel, representatives for both firms told Business Insider.

Friedman Agnifilo had been a CNN commentator as recently as Wednesday, when she suggested that an insanity defense would be Mangione's best bet.

She told journalist Kaitlan Collins, "It looks like to me there might be a 'not guilty by reason of insanity' defense that they're going to be thinking about because the evidence is going to be so overwhelming that he did what he did."

On Friday night, Collins broke the news that Friedman Agnifilo had been hired by the Mangione family.

Friedman Agnifilo worked as the chief assistant district attorney at the Manhattan District Attorney's Office for seven years before pivoting to private practice in 2021.

Mangione faces a second-degree murder charge in New York for the fatal December 4 shooting of Thompson, a 50-year-old father of two from Minnesota. That charge carries a maximum sentence of life in prison.

(A charge of first-degree murder is reserved for those accused of killing a law enforcement official or witness of a crime, or for when a murder is committed during the commission of another high-level crime, including robbery, rape, or kidnapping.)

Mangione is fighting extradition to New York City. The 26-year-old Ivy League graduate appeared for a hearing on December 10 at Pennsylvania's Blair County Courthouse, where a lawyer, Thomas Dickey, told the judge that Mangione was contesting his extradition. Police arrested Mangione in Altoona, Pennsylvania, on December 9 on local charges and later arraigned. Mangione made a bail request, which the judge denied during the hearing.

The suspect will remain at Pennsylvania's Huntingdon State Correctional Institution during the extradition proceedings. Dickey told reporters on December 10 that Mangione would plead not guilty to all the charges in Pennsylvania.

In an interview with CNN that evening, Dickey also said that he anticipates Mangione would plead not guilty to the murder charge in New York and that he hadn't seen any evidence that officials in New York "have the right guy."

Mangione also faces four other charges related to the killing of the insurance CEO: two counts of criminal possession of a weapon in the second-degree, one count of second-degree criminal possession of a forged instrument, and one count of criminal possession of a weapon in the third-degree.

A gun found on Mangione matched the three shell casings found at the site of the shooting, New York Police Department Commissioner Jessica Tisch said during a December 11 press conference.

Tisch added that the suspect's fingerprints also matched those found on a water bottle and snack bar wrapper discarded near the crime scene.

During Mangione's arrest, officers found a three-page handwritten document "that speaks to both his motivation and mindset," Tisch said at a separate press conference on December 9.

An internal NYPD report obtained by The New York Times gave the clearest view of the potential motive yet. Based on the so-called manifesto discovered, Mangione "likely views himself as a hero of sorts who has finally decided to act upon such injustices," the NYPD report said, as reported by the Times.

Mangione "appeared to view the targeted killing of the company's highest-ranking representative as a symbolic takedown and a direct challenge to its alleged corruption and 'power games,' asserting in his note he is the 'first to face it with such brutal honesty,'" according to the NYPD report by the department's Intelligence and Counterterrorism Bureau, the Times reported.

In a statement to Business Insider, representatives for Nino Mangione β€” a Maryland state legislator and a cousin of Mangione's β€” declined to comment on the news of Mangione's arrest.

"Unfortunately, we cannot comment on news reports regarding Luigi Mangione," the statement read. "We only know what we have read in the media. Our family is shocked and devastated by Luigi's arrest."

Recognized at a McDonald's

Mangione was eating in an Altoona McDonald's when an employee recognized him from the several surveillance images that authorities released in the aftermath of Thompson's killing and called the police, New York police said at the December 9 press conference.

Altoona police found Mangione in the McDonald's with multiple fake IDs and a US passport, as well as a firearm and a suppressor "both consistent with the weapon used" in the shooting of Thompson in the heart of Manhattan, Tisch, the NYPD commissioner, said.

The gun appeared to be a "ghost gun" that may have been made on a 3-D printer. NYPD Chief of Detectives Joseph Kenny said at the press conference that such a gun could fire a 9-millimeter round.

A Pennsylvania criminal complaint filed against Mangione said officers found a black 3-D-printed pistol and 3-D-printed silencer inside the suspect's backpack.

When Altoona officers asked Mangione if he had been to New York recently, he "became quiet and started to shake," the criminal complaint said.

Clothing, including a mask, was also recovered "consistent with those worn" by the suspect wanted for Thompson's killing, along with a fake New Jersey ID matching the ID that the murder suspect used to check into a Manhattan hostel before the attack, Tisch said.

Based on the handwritten document that police found on Mangione, according to Kenny, "it does seem that he has some ill will toward corporate America."

During a December 10 interview on NBC's "Today" show, Tisch said the "manifesto" revealed "anti-corporatist sentiment" and "a lot of issues with the healthcare industry."

"But as to like particular, specific motive that'll come out as this investigation continues to unfold over the next weeks and month," the NYPD commissioner said.

NBC News and The New York Times, each citing an unnamed senior law enforcement official, reported that the handwritten document read in part: "These parasites had it coming."

"I do apologize for any strife and trauma, but it had to be done," it added, according to the reports.

Police believe that Mangione acted alone.

NYPD investigators traveled to Altoona last week to interview Mangione after Altoona officers took him into custody.

Blair County District Attorney Peter Weeks said at Mangione's Pennsylvania arraignment that Mangione was carrying $10,000 in cash, including foreign currency, according to the Associated Press.

Mangione disputed the amount in court.

Photo of suspect in Brian Thompson's killing
NYPD released images of the person of interest in Brian Thompson's killing.

DCPI/NYPD

Mangione was active on social media

Mangione posted and amplified posts about technological advances like artificial intelligence on X. He also posted about fitness and healthy living.

He frequently retweeted posts by the writer Tim Urban and commentator Jonathan Haidt about the promise and perils of technology. He also appeared to be a fan of Michael Pollan, known for his writing about food and ethics.

Other deleted social media posts showed support for Robert F. Kennedy Jr. and expressed skepticism toward both President Joe Biden and President-elect Donald Trump.

At the top of his profile was a header image with three images: a photo of himself, smiling, shirtless on a mountain ridge, a Pokemon, and an x-ray with four pins or screws visible in the lower back.

Mangione founded a company called AppRoar Studios in 2015 while still in high school. AppRoar released an iPhone game called Pivot Plane that is no longer available.

The two other cofounders of AppRoar could not be reached for comment.

Mangione's X account has been deactivated. A spokesperson for YouTube said his three accounts on the platform were also terminated, but that they had not been active for about seven months.

A manhunt

Mangione's arrest followed a nearly week-long manhunt.

According to police, Manigone was born and raised in Maryland, and has ties to San Francisco, California. His last known address was in Honolulu, Hawaii.

The New York Post, citing law-enforcement sources, reported that Mangione's mother reported him missing in mid-November.

Law-enforcement sources told ABC News that FBI agents and members of the NYPD spoke to the mother a day before Mangione's arrest, following a tip, and that in the conversation she indicated that the person in the surveillance photos could be her son.

Kenny, the NYPD's chief of detectives, said that Manigone has no prior arrest history in New York and no known arrests in the US.

A Luigi Mangione with a matching birthday and address received a citation for simple trespass for entering a forbidden area of a state park in Hawaii in November 2023. He pleaded no contest and paid a $100 fine.

"For just over five days, our NYPD investigators combed through thousands of hours of video, followed up on hundreds of tips, and processed every bit of forensic evidence β€” DNA, fingerprints, IP addresses and so much to tighten the net," Tisch said at Monday's press conference announcing the arrest of Manigone.

Thompson was shot multiple times on a Midtown sidewalk as he was walking toward the Hilton hotel. He was steps away from a side entrance to the hotel β€” where he was set to speak at UnitedHealth Group's investor conference β€” when a hooded gunman opened fire on him from behind.

The chief executive of the nation's largest health insurer was struck at least once in the back and at least once in the right calf, police said.

Surveillance footage showed the gunman firing his weapon as Thompson, wearing a blue suit jacket, walked several feet in front of him.

Surveillance images of the suspected shooter in the killing of UnitedHealthcare CEO Brian Thompson.
Surveillance images show the suspected shooter in the killing of UnitedHealthcare CEO Brian Thompson.

NYPD via AP

The gunman fled the scene, first on foot and then on an electric bike, which he rode into Central Park before ultimately escaping from New York City, police said.

Shell casings and bullets found at the scene had the words "deny," "defend," and "depose" written on them, according to multiple reports citing unnamed sources. BI couldn't independently confirm these details.

In the aftermath of the attack, the NYPD offered a $10,000 reward for tips leading to the gunman's arrest, with the FBI offering a reward of up to $50,000 for information leading to his arrest and conviction.

A spokesperson for UnitedHealth Group, the parent company of UnitedHealthcare, reacted to news of Manigone's arrest in a statement to BI, saying: "Our hope is that today's apprehension brings some relief to Brian's family, friends, colleagues and the many others affected by this unspeakable tragedy. We thank law enforcement and will continue to work with them on this investigation. We ask that everyone respect the family's privacy as they mourn."

Read the original article on Business Insider

Brian Thompson's home was targeted with a hoax bomb threat the same day he was killed, police say

5 December 2024 at 12:04
UnitedHealthcare CEO Brian Thompson
UnitedHealthcare CEO Brian Thompson was killed Wednesday in New York City, where he was set to speak at an "investor day" event.

UnitedHealthcare

  • Brian Thompson, the CEO of UnitedHealthcare, was shot and killed in Manhattan Wednesday morning.
  • Thirteen hours later, his home and that of his wife were targeted with bomb threats, police said.
  • Police determined the threats were a hoax.

The homes of UnitedHealthcare CEO Brian Thompson and his wife in a suburb outside Minneapolis were targeted with fake bomb threats Wednesday evening, more than 13 hours after Thompson was shot and killed in Manhattan, police said.

Around 7 p.m. Wednesday, city employees in the Minneapolis suburb of Maple Grove received emails threatening to bomb Thompson's home and the home of his wife, according to incident reports released by the Maple Grove police department. Thompson and his wife lived in separate houses less than a mile apart.

Police checked both homes and determined the threats were a hoax. In a statement, Maple Grove police called the threats a form of "swatting," a kind of harassment.

The New York Police Department said Thompson was gunned down at about 6:45 a.m. Wednesday outside the Hilton hotel in midtown Manhattan. The shooter fled the scene before police arrived, and a manhunt is ongoing.

UnitedHealthcare is the largest private insurer in the US, and Thompson was in New York for an investor meeting when he was killed.

Read the original article on Business Insider

Brian Thompson didn't seem to have a bodyguard, and that surprises corporate-security consultants

9 December 2024 at 14:42
Police inspecting a murder scene.
Police inspecting the scene where the insurance executive Brian Thompson was killed in Manhattan on Wednesday.

Spencer Platt/Getty Images

  • UnitedHealthcare's CEO appeared not to have a bodyguard when he was shot Wednesday in Manhattan.
  • Two security consultants told Business Insider that was unusual.
  • Even if he'd had a bodyguard, it may not have saved his life, one said.

Two executive-protection consultants say they were surprised UnitedHealthcare CEO Brian Thompson didn't appear to have a bodyguard when he was shot and killed walking into a hotel in midtown Manhattan on Wednesday β€” though one said it likely wouldn't have saved his life.

A "person of interest," 26-year-old Luigi Mangione, was arrested in connection with Thompson's death in Altoona, Pennsylvania, on Monday.

It's not clear whether Thompson had a security detail, but in the video of the shooting shared by the New York City Police Department, he appears to be walking toward the hotel alone. A spokesperson for UnitedHealthcare did not immediately respond to a request for comment.

Brittney Blair, who specializes in consulting executives about their personal security for the risk-management firm K2 Integrity, said she was "floored, honestly," that Thompson did not appear to have a bodyguard.

"I've seen a lot of CEOs and high-profile business leaders who sometimes feel that corporate security is maybe a little bit overboard," she said. "They feel β€” I don't want to say untouchable, but they maybe underestimate how much of a public figure they are."

Thompson appeared to live somewhat modestly relative to the $10.2 million he received in compensation last year, in a combination of cash and stock grants, Securities and Exchange Commission records show. He resided in a Minneapolis suburb, in a home purchased for just over $1 million in 2018, tax records show.

His wife, Paulette Thompson, told NBC News that her husband had received threats.

"There had been some threats," she said. "Basically, I don't know, a lack of coverage? I don't know details. I just know that he said there were some people that had been threatening him."

Paulette Thompson couldn't be reached for comment by BI.

Joseph LaSorsa, a former Secret Service agent who now runs the private-security firm LaSorsa & Associates, said that an around-the-clock protective detail costs in the neighborhood of $100,000 a month. But, he said, even if Thompson had such a security detail, it might not have stopped a motivated shooter.

"I know it sounds extreme, but you're not going to mitigate a killing if someone's hell-bent on doing it to you. Sooner or later, they're going to succeed," LaSorsa said.

If Thompson had been walking with a bodyguard, LaSorsa added, "and they'd both had their backs turned, they both would have been shot."

Read the original article on Business Insider

United Healthcare CEO killer update: Person of interest in Brian Thompson shooting arrested

An image released by the NYPD of the shooting suspect in a taxi.
A new image released by the NYPD showing the shooting suspect in a taxi.

NYPD/X

  • UnitedHealthcare CEO Brian Thompson was fatally shot in New York City on Wednesday, the police said.
  • The NYPD said Thompson, 50, appeared to be killed in a targeted attack.
  • Police on Monday arrested a "person of interest" identified as 26-year-old Luigi Mangione.

Police in Pennsylvania on Monday arrested a "person of interest" in connection to the fatal Midtown Manhattan shooting of UnitedHealthcare CEO Brian Thompson.

The 26-year-old man, identified as Luigi Mangione, was arrested in Altoona, Pennsylvania, and charged with local gun and forgery charges, New York Police Department officials said during a press conference.

Mangione was arraigned on Monday evening and charged on five counts, including two felonies: forgery, carrying a firearm without a license, tampering with records or identification, possessing instruments of crime, and false identification to law enforcement, according to a criminal complaint viewed by Business Insider. He was ordered held without bail.

Mangione was arrested after an employee at a McDonald's recognized him from the surveillance photos circulated by law enforcement and called the police. The complaint said Mangione was wearing a blue medical mask and looking at a laptop when Altoona police arrived.

Mangione had fake IDs, a US passport, and a gun and silencer "consistent with" the one thought to have been used by the gunman who killed Thompson, police said. The criminal complaint said the gun and silencer had been 3-D-printed.

NYPD officials said Mangione was also found with a three-page handwritten document that suggested "he has some ill will toward corporate America."

Mangione is expected to be extradited to New York to face additional charges, NYPD officials said.

The manhunt for Thompson's killer

The NYPD had released more than a half-dozen surveillance images of the man suspected to be the shooter in the December 4 attack in the hopes that tips from the public could help authorities track him down.

The latest photos of the man suspected of the shooting β€” which has been described by police as a targeted attack β€” included one showing him in the back of what appears to be a taxi, wearing a blue medical mask and a dark hood. Another image showed the man standing outside the vehicle's window wearing a mask, hood, and dark puffer jacket.

An image of the suspect standing outside a vehicle released by the NYPD.
The NYPD released another image of the suspect.

NYPD/X

Moments after shooting Thompson dead in the heart of Manhattan Wednesday, police say the gunman fled the scene, first on foot and then on an electric bike, which he rode into Central Park. Police believe the shooter ultimately escaped New York City by bus.

Investigators believed the gunman caught a cab on Manhattan's Upper West Side and directed the driver to a bus station as he made his getaway following the shooting, Bloomberg reported.

Police officials told CNN they believed the man left New York City via the Port Authority's George Washington Bridge Bus Station in Washington Heights.

"We have video of him entering the Port Authority bus terminal. We don't have any video of him exiting, so we believe he may have gotten on a bus," NYPD Chief of Detectives Joseph Kenny said in a December 6 interview. "Those buses are interstate buses. That's why we believe he may have left New York City," Kenny said.

NYPD divers were seen over the weekend searching the waters in Central Park for any evidence in the shooting.

A law-enforcement source told CNN that investigators had found a backpack in Central Park that they believed belonged to the gunman. The backpack contained a Tommy Hilfiger jacket and Monopoly money, CNN reported, citing law-enforcement officials and sources.

It was not immediately clear if other items were found in the backpack.

Kenny said on December 6 that officials were investigating the possibility that the gunman may have used a veterinary gun, used on farms to euthanize large animals quietly, in the shooting, CNN reported.

A law-enforcement source previously told BI that the gun used by the shooter appeared to be equipped with a silencer, according to surveillance footage of the attack.

Most of the images that police have released of the man wanted in the shooting show him with a mask covering the bottom half of his face, except a set of two, which NYPD Commissioner Jessica Tisch called the "money shot," that showed the clearest images yet of the suspect unmasked.

"He's been traveling and walking around the streets of New York City largely in a mask, with his face covered. We had to go through lots of video evidence to get that one money shot with the mask down," Tisch told CNN in a December 6 interview.

Tisch said that police released the photos of the man not wearing a mask because they wanted a "wider audience to see the picture outside of New York City."

"We are right now processing a tremendous amount of evidence in this case," the NYPD commissioner told the news outlet, adding that authorities already have "lots of forensic evidence," including fingerprints and DNA evidence.

Police have called the killing of Thompson premeditated

Police have described Thompson's killing as "a brazen, targeted attack."

Thompson was set to speak at UnitedHealth Group's 8 a.m. investor conference on December 4 when a hooded gunman opened fire from behind, striking him at least once in the back and at least once in the right calf, the police said.

"Every indication is that this was a premeditated, pre-planned, targeted attack," Tisch told reporters at a press conference hours after the shooting.

"It appears the suspect was lying in wait for several minutes," Tisch added.

The NYPD offered a $10,000 reward for tips leading to the gunman's arrest, and the FBI said it was also offering a reward of up to $50,000 for information leading to the gunman's arrest and conviction.

Multiple reports said that authorities conducted forensic tests on a discarded cellphone, protein bar wrapper, and water bottle.

How the suspect arrived in New York is also becoming clearer.

Authorities believe he may have traveled to the city 10 days before the shooting on November 24 on a bus that originated in Atlanta and dropped him off at Manhattan's main bus depot, the Port Authority Bus Terminal. It was not yet clear where along the route he boarded the bus.

The Atlanta Police Department announced Friday that the NYPD contacted it and will provide assistance in the investigation as needed.

Photo of suspect in Brian Thompson's killing
NYPD released images of the suspect in Brian Thompson's killing.

DCPI/NYPD

The unmasked images of the wanted man released by police were captured at a hostel on New York City's Upper West Side, a law enforcement official told CNN, when an employee asked the man to lower his face mask.

The Times, citing a senior law enforcement official, previously reported that the suspect in the shooting used a fake New Jersey ID to book a room at the hostel he was staying at in the days before the attack.

Retired NYPD homicide detective Salvatore Tudisco previously told BI that the photos showing the man's face were likely to speed up the manhunt.

Tudisco led the city's last big manhunt for a murdered CEO, Gokada founder Fahim Saleh, whose killer was captured in three days by traces on credit card, cellphone, and surveillance camera evidence.

"That's the best option β€” to send it across the country, and someone will know him," the ex-detective said of the latest images.

He added that a facial-recognition trace would be less of an option because the hostel surveillance images do not show the man's full face.

Investigators can still try to run the photo through state driver's license and arrest databases, Tudisco said. However, some states require a judge to issue a warrant before state driver's licenses can be used as evidence in an arrest and beyond.

Shooter was 'proficient in the use of firearms,' police said

Kenny said at the NYPD's press conference in the aftermath of the shooting that the gunman arrived on 6th Avenue about five minutes before Thompson. The shooter's weapon appeared to jam during the attack, he added.

"From watching the video, it does seem that he's proficient in the use of firearms, as he was able to clear the malfunctions pretty quickly," Kenny said.

Surveillance footage captured the incident, showing the gunman firing his weapon as Thompson, wearing a blue suit jacket, was walking several feet in front of him.

A law-enforcement source, who is not authorized to talk to the press, told Business Insider that the gun appeared to be equipped with a silencer. The source added that the gunman "definitely knew" where Thompson was going to be.

Crime scene in front of the Hilton Hotel in Midtown Manhattan.
UnitedHealth Group canceled its investor day shortly after reports of the shooting broke.

Paul Squire/ BI

The police said officers found Thompson unconscious and unresponsive two minutes after the shooting. Emergency responders rushed him to Mount Sinai Hospital, where he was pronounced dead at 7:12 a.m.

Police have not identified a motive

The shooting occurred blocks from Midtown holiday tourism landmarks, including Radio City Music Hall and Rockefeller Center, whose Christmas tree lighting took place on December 4.

In the aftermath of the shooting, six evidence cups were visible on the taped-off section of the sidewalk where the attack occurred.

"That's covering the shell casings," an officer at the scene told BI, declining to give their name because they were not authorized to talk to the media.

UnitedHealth Group canceled its "investor day" conference shortly after reports of the shooting broke.

Investigators have not yet determined a motive for the killing.

Kenny said investigators were combing through Thompson's social media and interviewing employees and family members and would be talking to law enforcement in Minnesota, where Thompson lived and where UnitedHealth Group and UnitedHealthcare are based.

Thompson's wife, Paulette Thompson, previously told NBC News in an interview that her husband had been receiving threats.

"Basically, I don't know, a lack of coverage?" she said. "I don't know details. I just know that he said there were some people that had been threatening him."

The police department in his hometown of Maple Grove, Minnesota, told BI it hadn't been notified of any threats he might have received. Theresa Keehn, the Maple Grove police administrator, initially said Maple Grove had no record of calls for service to his house. Still, the department later said it had responded to a 2018 call from Paulette Thompson. An incident report said she had been walking to bed when she saw the front door deadbolt turn and grew afraid someone was inside the house. The police did not find anyone inside the home.

An unnamed senior law enforcement official told NBC News that shell cases found at the scene were inscribed with the words "deny," "defend," and "depose." BI has not independently confirmed the description of the evidence, and an NYPD spokesperson didn't return a request for comment.

Jay M. Feinman, an author and legal professor specializing in insurance law, torts, and contract law, wrote a similarly titled book "Delay Deny Defend: Why Insurance Companies Don't Pay Claims and What You Can Do About It."

The book is dubbed an exposΓ© of insurance injustice and explains how people can be more careful when shopping for insurance policies and what to do when pursuing a disputed claim.

The NYPD said Thompson arrived in New York City on Monday and was staying at a hotel across the street from where he was shot.

Police in Maple Grove, Minnesota, told BI homes of Thompson and his wife in a suburb outside Minneapolis were targeted with fake bomb threats Wednesday evening, more than 13 hours after the shooting.

Crime scene evidence in front of Hilton hotel in midtown Manhattan.
The police marked evidence at the scene of the shooting.

Laura Italiano/BI

Thompson was remembered as a 'hardworking Midwest guy.'

Thompson spent 20 years at UnitedHealth Group and was CEO of UnitedHealthcare, the health-benefits unit, since April 2021.

While announcing his promotion, the company said Thompson would "drive continued growth across the global, employer, individual, specialty, and government benefits business while continuing the company's focus on ensuring access to high-quality, affordable healthcare."

Leaders in the healthcare industry shared their condolences in the hours after Thompson's death.

UnitedHealth's shares were broadly unchanged after the shooting. They've gained about 12% in the past 12 months, less than the 32% increase in the S&P 500, but outperforming competitors, including CVS Health, Humana, and Elevance Health. During its third-quarter results in October, it gave what UBS called a "more conservative than usual" outlook for fiscal 2025. Ahead of Wednesday's investor day, it gave more detailed guidance for next year, forecasting revenue of $450 billion to $455 billion and adjusted earnings of $29.50 to $30 a share. The company also suffered a ransomware attack that disrupted pharmacy deliveries earlier this year.

By the afternoon of the shooting, UnitedHealth Group had removed the names of its executives from its website, an archived version of its site shows. Some executives also appeared to have deleted their LinkedIn profiles, though it's unclear when.

Thompson had previously served as CEO of the group's government programs, running its programs for Medicare and Medicaid recipients.

Thompson's former brother-in-law, Bassel El-Kasaby, told Business Insider that Thompson was "a good guy, very successful and very humble β€” just a decent, hardworking Midwest guy."

"Whoever did this is a coward and a loser," El-Kasaby said.

Correction: December 4, 2024 β€” An earlier version of this story misstated Thompson's work history at United Health. He worked at the company for 20 years but was not an executive there for 20 years.

Update December 9, 2024: This story was updated with details on the arrest of a "person of interest" in the shooting.

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As many as one in 10 coders are 'ghost engineers' Stanford researcher says, lurking online and doing no work

28 November 2024 at 13:02
relaxing in park

Getty Images

  • A Stanford researcher says his algorithm pinpoints employees who are doing the bare minimum.
  • Roughly 9.5% of coders are "ghost engineers" according to his research, which has not been peer-reviewed.
  • The research underscores tech's newfound mania with rooting out low performers.

Quiet quitting. Lazy-girl jobs. Bare-minimium Mondays.

Over the past two years, employees have expressed repeatedly that they are fed up with being asked to do too much.

Tough luck. The latest catchphrase to describe working less is "ghost engineer" β€” and it comes not from burnt-out employees but from a Stanford researcher whose team has developed an algorithm to help tech companies identify freeloading coders.

Stanford researcher and former Olympic-level weightlifter Yegor Denisov-Blanch ran the algorithm, which grades the quality and quantity of employees' code repositories on GitHub, on the work of more than 50,000 employees across hundreds of companies.

Roughly 9.5%, he found, "do virtually nothing."

Measuring output is difficult

Denisov-Blanch calls these workers "ghost engineers," defined as software engineers who are only 10% as productive or less than their median colleague.

His research began as an attempt to find a better way to grade the performance of software engineers, he said in an interview with Business Insider.

"Software engineering is a black box," Denisov-Blanch said. "Nobody knows how to measure software engineers' performance. Existing measures are unreliable because they rate equal work differently."

"It's not fair when someone's doing a very complicated change that's only one line of code. And the person doing the very simple change that's 1,000 lines gets rewarded," he continued.

His algorithm attempts to resolve that tension, giving high ratings to engineers who write many lines of code only so long as that code is maintainable, solves complex problems, and is easy to implement.

Denisov-Blanch's research has not been peer-reviewed.

There are other caveats. Industry-wide, the 9.5% figure could be an overstatement because Denisov-Blanch's research team ran the algorithm only on companies that volunteered to participate in the study, introducing selection bias.

Conversely, while Denisov-Blanch's team didn't classify employees whose output is only 11% or 12% of the median engineer's as "ghost engineers," there's a strong argument that those employees aren't contributing much either, which could mean the 9.5% figure is an understatement.

Why does this matter?

It’s insane that ~9.5% of software engineers do almost nothing while collecting paychecks.

This unfairly burdens teams, wastes company resources, blocks jobs for others, and limits humanity’s progress.

It has to stop.

β€” Yegor Denisov-Blanch (@yegordb) November 20, 2024

The hunt for underperformers

Rooting out underperformers has lately become something of a mania among some in Silicon Valley.

In September, Y Combinator co-founder Paul Graham published an essay lauding a management style he called "founder mode," which he distinguished from the conventional wisdom of, in his words, "hire good people and give them room to do their jobs."

"In practice, judging from the report of founder after founder, what this often turns out to mean is: hire professional fakers and let them drive the company into the ground," Graham wrote.

Heading the charge has been Elon Musk, who has spoken proudly about firing 80% of Twitter's employees after buying the company in 2022. Twitter, now X, didn't appear to experience significant outages or service interruptions following the staff reduction.

"Were there many mistakes along the way? Of course. But all's well that ends well," he told CNN. "This is not a caring-uncaring situation. It's like, if the whole ship sinks, nobody's got a job."

More remote workers were superstar coders

Musk now aims to apply that same ruthless efficiency to the federal government. As co-chair of a new Department of Government Efficiency, he pledged in a Wall Street Journal op-ed to slash federal staffing, including by ending remote work to spur resignations.

"If federal employees don't want to show up, American taxpayers shouldn't pay them for the Covid-era privilege of staying home," Musk wrote.

Denisov-Blanche's research showed mixed results for remote work. On one hand, he found that the prevalence of "ghost engineers" among remote workers was more than double that among in-person workers.

But he also found that many more of the most effective engineers β€” employees whose performance was at least five times better than their median colleague β€” were working remotely than were in-person.

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Amazon workers plan global protests during the Black Friday shopping weekend for the fifth year in a row

28 November 2024 at 08:32
Picket line outside an Amazon facility at night. Workers are wearing orange.
Amazon workers in the UK picketed outside a warehouse earlier this year, part of a steady increase in labor activism at the retail behemoth.

Jacob King/PA Images via Getty Images

  • Amazon workers in more than 20 countries are set to protest between Black Friday and Cyber Monday.
  • It's the fifth year Amazon workers have protested during the major shopping weekend.
  • The company has downplayed the actions while separately taking some steps to meet workers' demands.

Workers in more than 20 countries, including the U.S., are set to protest or strike between Black Friday and Cyber Monday over wages, working conditions, and Amazon's environmental impact.

The protests are part of the fifth annual Make Amazon Pay campaign, organized by a coalition of labor and progressive organizations.

In New Delhi, where employees said Amazon kept them working during a heat wave this spring, workers plan to march on Parliament demanding higher wages and job protections. Workers in several German warehouses are set to walk off the job.

In New York City, workers affiliated with the Retail, Wholesale, and Department Store Union are marching on Amazon founder Jeff Bezos' penthouse.

Have the protests worked?

Yes and no.

Amazon has downplayed the protests, characterizing them as small-scale and saying the labor groups organizing Make Amazon Pay are presenting a misleadingly negative portrait of working at the company.

"The fact is at Amazon we provide great pay, great benefits, and great opportunitiesβ€”all from day one," spokesperson Eileen Hards said in a statement. "We've created more than 1.5 million jobs around the world, and counting, and we provide a modern, safe, and engaging workplace whether you work in an office or at one of our operations buildings."

Separately, it has also taken steps that respond to some of protesters' demands, though not all workers say they're pleased with the company's rate of progress.

As labor groups make inroads into Amazon's U.S. fulfillment network, the company has boosted wages and broadcast its commitment to safety.

Over the past year, the Teamsters Union has scored several organizing victories in Amazon's American logistics operation. The Amazon Labor Union, which represents roughly 5,500 workers in a Staten Island warehouse, voted in June to affiliate with the Teamsters. Delivery drivers and air hub operators in California, Kentucky, and Atlanta also joined the Teamsters.

In September, Amazon raised wages for warehouse and transportation workers to an average of $22 per hour. In a post on its website, the company did not cite labor activism as a reason for the raises, saying they were "part of an annual process where we review our wages and benefits to ensure that they stay competitive."

What about Amazon's climate footprint?

This summer, Amazon also announced that it had met an ambitious climate target, of "matching" the electricity consumed by its global operations with renewable energy, while reducing its carbon footprint 3% from the prior year.

The company said it met that target seven years earlier than it had anticipated, in part by becoming the largest corporate purchaser of renewable energy in the world.

Person with blonde hair writes a sign stating, "Amazon: STOP [obscured by hand] & climate denial, start leading..."
In 2019, thousands of Amazon employees and other tech workers in Seattle walked out in protest of the company's carbon policies.

Karen Ducey/Getty Images

Members of Amazon Employees for Climate Justice, an organizing group of largely corporate workers, said the company's calculations did not include emissions from third-party merchants, who account for more than half the sales on Amazon's online store. Amazon has disputed the group's findings.

Amazon focused on "all the low-hanging fruit projects that it could. But now those are all done, and what we're seeing is they're not doing the hard stuff," Eliza Pan, a former Amazon employee and member of the climate group, told The Seattle Times in July.

Hards, the Amazon spokesperson, said Amazon is not done reducing its carbon footprint.

"Some actions will have immediate carbon savings, while others will take years to demonstrate results β€” and we will continue to invest in both proven and new science-backed solutions to help solve this crisis," Hards said.

What do the protests mean for Black Friday shopping?

Significant delays haven't occurred as a result of Make Amazon Pay protests in prior years, and it seems unlikely they will impact shipping times this year.

The holiday season is a significant revenue driver for the online retail giant. Amazon charted "record-breaking" holiday sales in the last three months of 2023. Amazon CEO Andy Jassy said on an earnings call earlier this year. The company reported $170 billion in revenue that quarter, up 14% from the year prior.

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Omead Afshar, a longtime Elon Musk loyalist, takes the wheel at Tesla

26 November 2024 at 06:15
Omead Afshar

Tim Bouckley for BI

As thousands of employees prepared to move into Tesla's new Gigafactory outside Austin, Omead Afshar had to decide what kind of coffee they were going to drink.

Afshar, then operating as a chief of staff for CEO Elon Musk, was overseeing the construction of one of the largest vehicle-manufacturing facilities in the world. He approached picking which beans to brew in the break rooms with the same rigor he applied to more-consequential decisions.

"He had 20 different companies submit, and he went through all of them personally," one of his former skip-level reports said. "He wants everything to be perfect."

It has served him well. This October, Musk elevated Afshar to vice president of North American and European operations, cementing Afshar's status as one of the automaker's most important leaders.

The 38-year-old's rise to power comes at a critical moment for Tesla. The automaker faces increasing competition from other EV makers, slumping delivery numbers, and pressure from unions in both Germany and the US. It will also contend with the administration of President Donald Trump, who has brought Musk into his inner circle while simultaneously signaling plans to end electric-vehicle tax incentives, increase US oil production, and roll back emission standards.

As Musk increasingly turns his attention to politics, Afshar is set to help shepherd Tesla through this volatility.

Omead Afshar and Elon Musk walking against a red background.
Omead Afshar, seen here on the left, said in a 2019 interview with his brother that he spends too much time working to have a family. If he had children, he said, "they probably would have been taken away by social services.

Aly Song/Reuters

A representative for Afshar declined to comment. Musk and Tesla did not respond to a request for comment.

Over the seven years he has spent working for Musk, Afshar has emerged as one of the billionaire's most loyal lieutenants, driven and singularly focused on his goals. Musk has long trusted Afshar's managerial capacity and attention to detail, four current and former colleagues say.

A former Tesla employee, Seth Sharp, said Afshar gave out his personal cellphone number and invited conversation with employees, adding that Afshar "always answered" Sharp's texts.

Afshar has thrived at a company with considerable executive turnover. Eight of Musk's direct reports have left Tesla over the past year, including Drew Baglino, the carmaker's senior vice president of powertrain and electrical engineering, and Rebecca Tinucci, the senior director of Supercharging.

In May, Tom Zhu stepped away from his duties overseeing global manufacturing in North America and Europe. Zhu, whom some have considered a potential successor to Musk, returned to his former position as Tesla's China chief.

In his new role, Afshar will be taking over many of Zhu's former responsibilities.

"Supporting Elon, who notoriously has a short fuse, isn't easy," Sharp said. "Omead has essentially proven he can stand close to the sun without getting burned."

Afshar, another former employee said, "is like the final boss on the way to Elon: Everything goes through him first." (This employee, as well as several others interviewed for this article, asked not to be named. Their identities are known to BI.)


Years before Tesla, Afshar studied biomedical engineering at the University of California, Irvine, and worked as a ski instructor. In 2009, several months after he graduated, Afshar, then 23, was driving in the Westlake Village neighborhood of Los Angeles.

Shortly after 11 p.m., Afshar lost control of the car. A local news report said he crossed into the median, knocked down several trees, and finally hit a larger tree.

Emergency personnel took Afshar and a passenger, a woman in her 20s, out of the car and to the hospital in critical condition, an incident report said. His cousin Behrad Vahidi told BI that Afshar had "kissed death" during the crash.

Afshar has never spoken publicly about the crash. But in a 2019 interview with his younger brother at an event for his alma mater, Afshar defended Tesla's mission of making driving safer and more sustainable.

Tesla, he said, is unfairly maligned by journalists reporting on crashes involving the company's vehicles. There are over 100 automobile deaths per day, he said, but if a Tesla "runs into someone's garage, that's going to be the headline."

Afshar seemed exasperated that some people couldn't grasp what he saw as the larger picture. At Tesla and other Musk companies, he said, "the mission is good, and what we're trying to do is right."

He joined the company in 2017 as a project manager in the office of the CEO in San Francisco. He moved to Texas in 2020 to oversee the construction of the Gigafactory, which he took from groundbreaking to grand opening in less than two years.

Bloomberg reported that there he was part of a project involving plans for a large glass structure. The Wall Street Journal reported that the project, known as "Project 42," was internally believed to involve building a glass house for Musk. Tesla launched an internal investigation into Project 42 in 2022, Bloomberg reported. The Department of Justice and the Securities and Exchange Commission also launched separate inquiries into Project 42, the Journal reported.

The status of those investigations is unclear. The SEC declined to confirm the existence of such an investigation. The DOJ declined a request for comment. Musk has previously said he does not plan to build a glass house.

The four current and former colleagues said Afshar became lower profile at Tesla in 2022 but continued to work closely with Musk. Afshar was named a vice president at SpaceX in late 2022. The Financial Times reported that Afshar also assisted with Musk's acquisition of Twitter, now X, and with cost-cutting initiatives at the social-media company in 2022 and 2023.

A photo of Teslas cars on the production line of the company's Austin, Texas Gigafactory.
A photo of Teslas cars on the production line of the company's Austin, Texas Gigafactory. Afshar oversaw construction of the facility.

Getty/ Suzanne Cordeiro

Records of text messages from Afshar to Musk, included in a lawsuit related to Musk's purchase of Twitter, underscore their close relationship.

"We all love you and are always behind you," Afshar wrote in April 2022, the day after Musk made an unsolicited offer to buy the social-media company. "Not having a global platform that is truly free speech is dangerous for all."

If Musk responded, there is no record of it in those court documents. Other court documents show that Afshar later invested in Twitter through a limited partnership.

Afshar had formally returned to Tesla by early 2024, five former employees said, though two of those people said Afshar was regularly operating in the background even before his official homecoming.

In recent photos of Afshar, he is nearly always at Musk's side: onstage at Tesla's Cyber Rodeo party; at a meeting with Tesla's manufacturing executives in Shanghai; and at a dinner for brainstorming robotaxi designs.

"Omead is similar to Elon: You have to be prepared to talk about anything or everything in a meeting with him," Afshar's former skip-level report said.


Like Zhu and Musk's family office manager Jared Birchall, Afshar has left barely a trace in the public record.

He's given only two known on-the-record interviews to journalists: one to Walter Isaacson, for his 2023 biography of Musk, and another to Time magazine when the publication named Musk "Person of the Year" in 2021. Election and campaign-finance records indicate Afshar has made no political contributions and has voted only once, in the most recent election.

Outside work, Afshar appears to lead a modest existence in line with his corporate reputation for cost-cutting and efficiency.

When he moved to Austin in 2020, he rented a one-bedroom apartment. That year he received $10 million worth of Tesla shares as a bonus, and in 2021 he paid $1.6 million for a newly constructed three-bedroom home in what a real-estate agent described in a listing as an "eclectic" neighborhood. For at least a year after Afshar moved in, the home across the street had broken windows and stripped siding.

Former colleagues said they observed occasional micromanaging tendencies in his Texas Gigafactory role, but they also emphasized his warmth amid Tesla's high-octane corporate culture.

Some workers praised Afshar for working to improve the employee experience, including buying Texas-style belt buckles to celebrate the factory's launch and planning a factorywide party after the site received a certificate of occupancy from the state.

In the 2019 interview with his brother, Afshar described his devotion to the automaker, saying he had missed birthdays and felt anxious about being away from his phone for even an hour.

Tesla, he said, was a good fit for him. "I like high-pressure environments," he said. "And this is definitely one of them."

Do you work for Tesla or have a tip? Reach out to the reporter via a non-work email and device at [email protected] or 248-894-6012

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