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Instagram Dealing with Server Issues, Users Upset

Instagram Dealing with Server Issues, Users Upset

iStock Editorial/Thinkstock(NEW YORK) — Instagram crashed Thursday afternoon, leaving Internet denizens without a place to post pictures of pets and food.

In a tweet, the company acknowledged the problem, saying that they are “experiencing some technical difficulties.”

Instagram is experiencing some technical issues. We’re aware and working on a fix.

— Instagram (@instagram) August 28, 2014

 

The website “Is It Down Right Now” shows that Instagram’s server is not responding.

The social media service’s mobile app seemed to properly load older photos, but was unable to reload the service. The web client returned a “500 Internal Server Error” that prevented users from accessing the website.

On Twitter, the phrase “Why is instagram” was briefly trending worldwide, as users sought other means of sharing their selfies and Throwback Thursday photos.

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Wall Street Posts Losses After Hot Start to Week, Labor Department Releases Positive Unemployment Numbers

Wall Street Posts Losses After Hot Start to Week, Labor Department Releases Positive Unemployment Numbers

iStockphoto/Thinkstock(NEW YORK) — After a strong start to the week, Wall Street posted losses on Thursday, while a Labor Department report indicated slightly improved unemployment numbers.

The Dow Jones Industrial Average closed at 17,079.57, down 42.44.

The Nasdaq finished at 4,557.70, a drop of 11.92 from Wednesday’s close, while the S&P 500 slipped 3.38 to 1,996.74, finishing below 2,000 for the first time since it broke that mark earlier this week.

The Labor Department’s weekly report indicated a slight decrease in jobless claims last week. The department also noted that there were no “special factors” that helped to decrease the figures.

Also on Thursday, the investigation into a cyberattack against JPMorgan Chase continued. Wednesday night, the FBI and Secret Service announced the investigation, though they were unable to definitively determine whether customer information was at risk due to the attack.

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Apple Sends Invitations for Mysterious Sept. 9 Event

Apple Sends Invitations for Mysterious Sept. 9 Event

Apple Press(CUPERTINO, Calif.) — The wait is almost over.

Apple sent out mysterious invitations on Thursday for a Sept. 9 media event in Cupertino, California.

Much of the speculation has centered around the possible release of an iPhone 6 and a wearable device, however Apple isn’t commenting on what it has up its sleeve.

A gray and white invitation sent out to members of the media on Thursday teases, “Wish we could say more.”

The event will be held at the Flint Center for the Performing Arts in Cupertino, California, at 10 a.m. PT.

It will be the first time Apple has held an event at the 2,405-seat theater since 1999, when it launched a new iMac, according to Mashable.

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Bud Light’s $250K Offer to Descend on Town Hits a Wall

Bud Light’s $250K Offer to Descend on Town Hits a Wall

Anheuser-Busch(CRESTED BUTTE, Colo.) — Bud Light wants to know whether a small mountain town in Colorado is “up for whatever.” The answer this time from the divided townspeople: maybe, although $10 million might be just enough to swing more support toward the beer-inspired party.

Bud Light, one of Anheuser-Busch’s beer brands, is planning to host a three-day event “of unexpected fun” that will transform part of Crested Butte, Colorado, known for its outdoor activities and music festivals, into a fictitious town of Whatever, USA.

As part of the deal, Anheuser-Busch will donate $250,000 to the town, as a sign of gratitude, but some of the 1,500 residents are not thrilled with the idea of Whatever from Sept. 5-7.

One resident, former Colorado Sen. Tim Wirth, called the $250,000 donation a “paltry and insulting sum.”

“My own view is that this is truly an inappropriate function for a town that has built its reputation so carefully,” Wirth told ABC News. “It should cost them a pretty penny and they won’t even notice it.”

Bud Light’s “UpForWhatever” ad campaign began during the Super Bowl, in which random people on the street, seemingly between the ages of 21 and 35, are whisked off to celebrity-laden adventures. In Bud Light commercials for the town of Whatever, USA, there’s a fake, mustached mayor.

For this specific campaign in Colorado, the company will select 1,000 Bud Light fans across the United States who auditioned with a 10-second video explaining why they should be flown into Whatever, USA. Winners will be notified 48 hours before the trip.

The audition deadline is next Thursday and more than 150,000 people have applied so far.

The town will host a public hearing and council vote Friday about the proposed plans, which include street performers, a parade, music, dancing, closing off the local Big Mine Ice Arena and, of course, lots of Bud Light.

“There are a lot of different opinions in the town,” town manager Ted Crossett said. “There are a lot of people who support it and a lot of people who do not for a variety of reasons.”

Crossett’s staff report about the weekend describes some of the activities, including “stumble upon events, which are low impact activities such as games, low-key races and curiosities. Most would be open to the public.”

“Some would be closed to contestants. Activities would take place on both the street and in private businesses,” the Aug. 23 report states.

The town council has “allowed themselves to be put into this dreadful corner” that has divided the town, Wirth said.

Wirth and other residents decry the council’s working behind the scenes with Bud Light to coordinate such a major event. But Wirth said he was proud of the “democracy in action” during Monday’s hearing at which residents spoke openly with town leaders.

“Crested Butte has every bit of leverage right now to say to Bud Light, ‘We’ll approve your event if you send us a check for $10 million from a multibillion-dollar corporation,’” he said.

As for Anheuser-Busch, it is “optimistic” the town council will vote to approve the Whatever, USA activities, according to a company statement to ABC News.

“We’ve spent several months planning and preparing with the town and local vendors, and hope that Whatever USA’s temporary citizens will get a chance to experience everything Crested Butte has to offer,” the statement reads. “We can’t imagine a better setting for a weekend of unexpected, unparalleled fun.”

David Ochs, executive director at the Crested Butte/Mt. Crested Butte Chamber of Commerce, told ABC News he believes the majority of the 300 active members in the organization support the event. He argues that the event will bring an unknown amount of extra cash to local businesses and the town coffers, as the high tourist summer season comes to an end.

“Keep locals working, keep paychecks coming and keep everything rolling,” he said. “Bud Light has been very good in incorporating retail businesses into the event, but the real benefit might be in the long term: the exposure and marketing of it is what they will see and want to come back to Crested Butte and that’s our bread and butter.”

Kevin McGruther, a town resident of 18 years, attended the most recent hearing about the proposed event Monday. He said he is not arguing for or against the event, but points to the local government’s failure to adhere to its typical town-event application process.

“The issue is the transparency, the preemption of the process and disenfranchisement of the community,” he told ABC News.

Wirth, the former U.S. senator, said if Anheuser-Busch can pay big money, possibly millions, for celebrities like Arnold Schwarzenegger to play table tennis in a Super Bowl ad, the company should cough up for using the resources of the town and its reputation.

“They paid him Schwarzenegger millions and they’re going to be here ripping up the town for a week for $250,000?” Wirth said. “That gets my indignant juices running.”

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FBI, Secret Service Investigating Cyberattack on JPMorgan Chase

FBI, Secret Service Investigating Cyberattack on JPMorgan Chase

iStockphoto/Thinkstock(WASHINGTON) — The FBI is investigating a cyberattack earlier this month against JPMorgan Chase that may have been carried out by Russian hackers.

It is not clear whether customer data was compromised by the attack. The FBI released a statement on Wednesday saying that they were working with the U.S. Secret Service to determine the scope of the breach, noting that it may also have impacted other financial institutions.

JPMorgan Chase spokeswoman Trish Wexler told ABC News that “companies of our size unfortunately experience cyberattacks nearly every day.” JPMorgan, she said, has “multiple layers of defense to counteract any threats and constantly monitor fraud levels.”

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Jobless Claims Fall to 298K

Jobless Claims Fall to 298K

iStock/Thinkstock(WASHINGTON) — Jobless claims were slightly lower last week, decreasing by 1,000, according to the latest figures released Thursday by the Labor Department.

For the week ending Aug. 23, the number of people filing for benefits declined to 298,000. The previous week, claims stood at 299,000.

The Labor Department said there were no “special factors” impacting that week’s figures.

The four-week moving average dipped lower, falling 1,250 to 299,750.

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Loyal Customers Sometimes Have Unreasonable Expectations

Loyal Customers Sometimes Have Unreasonable Expectations

iStock/Thinkstock(COLUMBUS, Ohio) — Do you have a sense of “deservingness?”

That’s the term Ohio State University researcher Rebecca Walker Reczek has for people who think that just because they’re a loyal customer of some retailer or business that they deserve special treatment.

Very often, customers do receive perks but as Reczek points out, deservingness even extends to promotional contests where winners are chosen at random and the rules specify that no purchase is necessary to enter.

She gives the example of someone who regularly uses the same hotel chain and the feeling that they’re more entitled to win a free gift basket “even though the drawing is open to all hotel guests, including those who are not regular customers.”

Although there’s really no logic to it, Reczek contends, “Devoted customers think they are luckier than others when it comes to these contests with random outcomes.”

This “lucky loyalty effect” is something that corporate managers should be aware of, according to Reczek, although those with a sense of entitlement should try and scale back their expectations when outcomes can’t be controlled.

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EPA, DuPont Corp. Agree to $1.275 Million Settlement over Chemical Violations

EPA, DuPont Corp. Agree to $1.275 Million Settlement over Chemical Violations

iStockphoto/Thinkstock(WASHINGTON) — The U.S. Environmental Protection Agency and the Department of Justice announced on Wednesday a settlement with DuPont Corp. for allegedly releasing hazardous substances into the Kanawha River in West Virginia over a four-year span.

An EPA press release alleges that the company released chemicals into the river on eight occasions between 2006 and 2010. As compensation, DuPont will pay $1.275 million and take corrective actions to prevent similar activity in the future.

The EPA notes that the releases posed significant risk, with one worker dying after exposure to a toxic gas that was released due to the company’s failure to comply with industry accident prevention procedures.

DuPont estimated that it will spend over $2 million to complete the mandated improvements.

The settlement “will ensure that the proper practices are in place to protect communities and nearby water bodies,” said Cynthia Giles, assistant administrator for the EPA’s Office of Enforcement and Compliance Assurance.

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At Least One US Company Takes Fight Against Counterfeiters into Own Hands

At Least One US Company Takes Fight Against Counterfeiters into Own Hands

Hisham Ibrahim/Photographer’s Choice RF/Getty Images(WASHINGTON) — At the International Property Rights Center in Washington D.C., director Lev Kubiak said selling counterfeit items was a “very, very lucrative business,” and “most Americans have no idea” just how much of what they’re buying is actually fake.

The Federal Trade Commission says it’s been cracking down in recent weeks, sending cease-and-desist letters to companies that it says are making false or uncertified claims.

Kubiak showed ABC News a room containing fake items the center had seized from store shelves and Internet sites across the U.S., including the U.S.-made language-learning tool Rosetta Stone.

“This one came from China,” Kubiak said, pointing out some tell-tale signs: misspelled words such as “guaranted” and “Piece” Corps, rather than Peace. The counterfeiters even forged the Rosetta Stone website.

At the Rosetta Stone factory in Harrisonburg, Virginia, Rula Abu-Taleb, a product-control clerk, said counterfeiters took jobs away.

“It’s sad for us.…There’s someone out there that’s making their own money off of our hard work,” she said about the fake products.

Rosetta Stone said the secret to its success was its U.S. workers.

“I love the creativity that comes out of our company,” said Steve Swaad, president and CEO of Rosetta Stone. “I love the creativity that comes out of the U.S.…I look at counterfeiting as an obstacle that we’re going to overcome.”

Rosetta Stone is fighting back against counterfeiters, though, investing in smart technology to scour the Internet looking for crooks.

“I think if we took this process overseas, it would be one job among many, with people that didn’t care half as much as these folks care,” said director of operations David Litherland. “It just wouldn’t be the same quality of product shipped out to our customers.”

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Little Movement on Wall Street Wednesday, GDP Growth Slowed in First Half of 2014

Little Movement on Wall Street Wednesday, GDP Growth Slowed in First Half of 2014

iStockphoto/Thinkstock(NEW YORK) — After consecutive days of gains and milestones, Wall Street was a bit of a mixed bag on Wednesday, with two of the major indices posting small gains.

The Dow Jones Industrial finished at 17,122.01, up 15.31 from Tuesday’s finish.

The Nasdaq dropped 1.02 to 4,569.62, while the S&P managed — barely — to close above 2,000 again, finishing the day at 2,000.10, up 0.08. That is the second consecutive day — and the second close ever — above 2,000 for the S&P 500.

Also on Wednesday, the Congressional Budget Office indicated that a slow first quarter may indicate lower-than-expected growth for the economy in 2014. The updated GDP growth estimate is just 1.5 percent for the 2014 fiscal year. Still, the CBO expects 3.5-percent growth in 2015 and 2016.

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Little Movement on Wall Street Wednesday, GDP Growth Slowed in First Half of 2014

Little Movement on Wall Street Wednesday, GDP Growth Slowed in First Half of 2014

iStockphoto/Thinkstock(NEW YORK) — After consecutive days of gains and milestones, Wall Street was a bit of a mixed bag on Wednesday, with two of the major indices posting small gains.

The Dow Jones Industrial finished at 17,122.01, up 15.31 from Tuesday’s finish.

The Nasdaq dropped 1.02 to 4,569.62, while the S&P managed — barely — to close above 2,000 again, finishing the day at 2,000.10, up 0.08. That is the second consecutive day — and the second close ever — above 2,000 for the S&P 500.

Also on Wednesday, the Congressional Budget Office indicated that a slow first quarter may indicate lower-than-expected growth for the economy in 2014. The updated GDP growth estimate is just 1.5 percent for the 2014 fiscal year. Still, the CBO expects 3.5-percent growth in 2015 and 2016.

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US Economy Growing Slower than White House Predicted

US Economy Growing Slower than White House Predicted

iStock/Thinkstock(WASHINGTON) — The U.S. economy has grown just 1.5 percent in the 2014 fiscal year — far slower than White House projections — while more than $500 billion of deficit spending was added to the national debt, according to projections released Wednesday by the non-partisan Congressional Budget Office.

Just last month the Obama administration forecast 2.6 percent GDP growth in 2014.

The CBO had some good economic news, predicting that the GDP will rebound and expand by 3.4 percent over the next two years due to increased demand for goods and services, businesses investments in new structures and equipment, improved consumer spending and improving on the housing front.

In its report released Wednesday,  the CBO said growth was stymied partly by “bad weather” during the cold months of spring.

The report said that $506 billion was added to the national debt this year, but that was almost $170 billion less than last year. The CBO also estimated the annual deficit will shrink to $459 billion in 2015 if taxes and spending law remains the same. But the deficit would rapidly grow in years to follow, hitting a ceiling of $960 billion by 2024 unless Congress enacts changes to alter the trajectory.

In total, CBO says current law would create $7.2 trillion in unfunded liabilities over the next 10 years.

CBO’s latest data also predicts the national unemployment rate will average 5.6 percent from 2018 through 2024.

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Burger King’s Move Draws Controversy

Burger King’s Move Draws Controversy

Getty Images(NEW YORK) — Burger King is facing a grilling from critics of U.S. companies that move overseas to cut their tax bills.

“I’ve eaten my last Whopper,” is among the many comments on Burger King’s Facebook page.

The company announced on Tuesday that it would buy the popular Canadian coffee and doughnut chain Tim Hortons for more than $11 billion. The corporate headquarters of the combined firm will be in Canada — a move that stands to help lower Burger King’s corporate taxes.

Sen. Sherrod Brown, D-Ohio, is calling for U.S. consumers to boycott Burger King, while Democrats have been calling for legislation to limit these so-called tax inversions.

But the CEO of the merged company insists the deal is not about taxes. And there appear to be strong business reasons for the firm to move. While Burger King has many more franchises, Tim Hortons has much larger profits than the U.S. firm. The deal will create the world’s third largest fast-food chain.

Burger King’s move has re-ignited the debate over the U.S. corporate tax system. This is not merely about tax rates but also the global system of taxation.

“The U.S., unlike most developed-world governments, insists on taxing the global income of its citizens and corporations that have U.S. headquarters,” writes Megan McArdle of Bloomberg Businessweek. “Because the U.S. has some of the highest tax rates in the world, especially on corporate income, this amounts to demanding that everyone who got their start here owes us taxes, forever, on anything they earn abroad.”

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Thanksgiving Flights: Buy Before Labor Day, Experts Say

Thanksgiving Flights: Buy Before Labor Day, Experts Say

Stockbyte/Thinkstock(WASHINGTON) — It’s not yet Labor Day, but the time to buy Thanksgiving weekend flights is right now. Travel web site Hipmunk has the data to back up the claim that waiting past this week to book for Thanksgiving will mean paying m…

Time Warner Cable Service Problems Reported Across the Country

Time Warner Cable Service Problems Reported Across the Country

Chris Hondros/Getty Images(NEW YORK) — Time Warner Cable subscribers across the country experienced service problems Wednesday morning.

The problems started at 4:30 a.m. ET, said Bobby Amirshahi, Vice President of Public Relations for Time Warner Cable.

“During our routine network maintenance, an issue with our Internet backbone created disruption with our Internet and On Demand services,” Amirshahi said in a statement.

Service was largely restored by 6 a.m., Amirshahi said, with updates ongoing to restore service to all customers.

Frustrated subscribes wrote about the situation online, making Time Warner a trending topic on Twitter.

“Nothing says good morning like a nationwide Time Warner Cable internet outage,” one person wrote on Twitter.

More than 11 million residents and companies across the United States subscribe to Time Warner Cable.

New York Gov. Andrew Cuomo said Wednesday that he’s directed the state’s Department of Public Service to investigate the outage “as part of its review of Comcast’s proposed merger with Time Warner.”

“Today’s widespread internet outage that has apparently impacted more than 11 million customers at Time Warner — which is based in New York — is a stark reminder that our economy is increasingly dependent on a reliable broadband network.  That is one of the reasons I pushed for a stronger standard of review for cable company mergers earlier this year,” Gov. Cuomo said in a statement.

He later added, “Dependable internet service is a vital link in our daily lives and telecommunications companies have a responsibility to deliver reliable service to their customers.”

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Zara to ‘Destroy’ T-Shirts Resembling Concentration Camp Uniforms

Zara to ‘Destroy’ T-Shirts Resembling Concentration Camp Uniforms

iStock/Editorial/Thinkstock(NEW YORK) — A popular clothing brand has removed what some are calling a “concentration camp” shirt for kids from its shelves and website after coming under fire on social media.

Zara, a Spanish brand with outposts all over the world including the U.S., was selling in its kids’ clothing line a white-and-blue striped shirt with a gold star. Some felt the stripes in combination with a gold star reminiscent of the Star of David looked far too similar to uniforms worn in Nazi concentration camps during the Holocaust.

Hey @ZARA ! What the ell is wrong with you?! pic.twitter.com/5Xm4TfDvIH

— Carolina Farraj✌️ (@Carolinafarraj) August 27, 2014

The brand said the shirt was inspired by “classic American Westerns.”

But on Twitter Wednesday, Zara apologized in several languages to its 520,000 followers.

@MiguelEL We honestly apologize, it was inspired by the sheriff’s stars from the Classic Western films and is no longer in our stores

— ZARA (@ZARA) August 27, 2014

In a statement emailed to ABC News, Inditex, the company that owns Zara, said the t-shirts will be “reliably destroyed.”

“The garment was available only for just a few hours and sales of the t-shirt have been marginal,” the company said. “Inditex would like to reiterate its utmost respect for all cultures and religions. The Group is a Company where people from 180 nationalities work together representing all the cultures, races and religions of the modern world. Inditex is proud of its cultural diversity. In addition, respect and dignity feature among the principles which guide and define its corporate values. The Group condemns and rejects any form of discrimination.”

This isn’t the brands first misstep in regards to Nazi-inspired clothing. In 2007, the brand removed from stores a line of handbags with a symbol on them that resembled a swastika.

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Phone Case Helps Users Take the Perfect Selfie

Phone Case Helps Users Take the Perfect Selfie

Allan Shoemake/Glow Enterprises LLC(BOONTON TOWNSHIP, N.J.) — Finding the right lighting, putting on makeup or even having cosmetic work: There’s no limit to what people will do to take the perfect selfie.

But now, thanks to LuMee, an illuminated smartphone case for the iPhone 5 and iPhone 5S, the perfect selfie is finally within reach.

“We’re solving a problem that lots of people didn’t even know they had,” Allan Shoemake, 57, one of the creators of the LuMee case, told ABC News. “It’s great when you’re trying to take a selfie with a background that’s light or inside a cab or restaurant — mostly low-light situations or at night.”

The Boonton Township, New Jersey, father initially came up with the idea for the LuMee case when he was using Skype to video chat with his daughter, who was studying abroad in Italy.

“I said, ‘I can hardly see you. Why don’t you go by the window?’” Shoemake recalled. “I said to my wife, ‘Why don’t they have a light out there to help light up cellphones or computers?’”

Using foam board, Shoemake plugged in Christmas lights around his computer to light up his screen.

“So the next time we used Skype with my daughter, she was like, ‘Why do you guys look so good?’” said Shoemake.

After working with an electrical engineer to perfect his idea, Shoemake was able to develop his patented LuMee smartphone case, which is available in black or white on Amazon and the LuMee website for $39.95. Samsung Galaxy S6 owners also hoping to take the perfect selfie can buy a LuMee case this October.

While most smartphones come with a flash for the camera, the LuMee case has built-in lights at the front of the case that stay on while you take a selfie, put on makeup or even when you’re taking a photo of your food.

“I’ve been a photographer for 30 years, so I was really picky about the lights and the color temperatures,” Shoemake said. “The beauty of not having a flash is what you see is what you get.”

The case is powered by its own battery that takes 30 to 45 minutes to charge. It can last as long as 2.5 hours on its highest setting and 36 hours at its lowest setting. To adjust the brightness, users can press and hold the dimmer at the back of the case.

“Now they don’t have to search around the room for the best light,” Shoemake said. “They could just turn the case on and look beautiful.”

Shoemake is also developing a similar case for the iPad and other tablets.

“There’s nothing like it out there for the perfect selfie, the perfect food shot. It’s multifunctional,” Shoemake said. “We’re not going to appeal to every case out there, but everyone needs good lighting.”

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Labor Day Gas Prices Are the Best in Years

Labor Day Gas Prices Are the Best in Years

iStock/Thinkstock(NEW YORK) — Americans hitting the road for the Labor Day weekend may get some welcome relief at the pump. That’s because gasoline prices this holiday weekend are expected to be at their lowest level in four years.

Currently, the national average price for a gallon of regular is $3.43. That’s 16 cents cheaper than Labor Day 2013.

ABC News Chief Business and Economics Correspondent Rebecca Jarvis explains, “Oil is dropping, because we saw prices earlier in the summer above $100 a barrel. There were fears that the instability in Iraq would hit oil supply. They didn’t in any major way.”

What’s also responsible for the decline is that U.S. production of oil is at a 42-year high.

According to AAA, 29.7 million Americans are projected to go on a road trip between this Thursday and next Monday.

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NJ Car Dealer, Subject of ABC News Probe, Ordered to Repay Customers Sold Sandy-Damaged Cars

NJ Car Dealer, Subject of ABC News Probe, Ordered to Repay Customers Sold Sandy-Damaged Cars

Design Pics/Thinkstock(OLD BRIDGE, N.J.) — A New Jersey car dealership operator will have to pay back customers who unknowingly bought Superstorm Sandy-damaged cars from his lot, thanks in part to a five-month ABC’s The Lookout investigation into flooded cars being sold on used car lots.

Jonathan Olin, 42, the operator of used car dealership D&D Auto Sales in Old Bridge, N.J., was accused of using false vehicle titles to sell the cars to unsuspecting customers from February 2013 through July 2013, according to prosecutors.

Olin pleaded guilty this week to second-degree theft by deception, and faces three years in state prison. He was also ordered to pay full restitution to the victims.

The ABC’s The Lookout team went undercover last summer at D&D Auto Sales, where they discovered a 2006 Ford F-350 truck seriously damaged by Sandy being sold on the lot for $19,999. The truck’s Vehicle Identification Number (VIN) and auction records indicated it was damaged by a flood.

A D&D salesman sold the car to an ABC’s The Lookout producer for its asking price and referred to a flood alert on the vehicle’s CarFax report as “a glitch.”

But when The Lookout team brought the truck to Allan Picker, owner and certified mechanic at All-Time AutoBody in Point Pleasant, N.J., he discovered the car had serious damage, including a corroded transmission and potentially hazardous airbags that could have randomly deployed while driving.

When The Lookout report aired in July 2013, D&D Auto Sales responded to the team’s findings, stating, “D&D Auto Sales sincerely regrets the unfortunate misrepresentation of the product by the salesperson. We do not condone such business practices and have terminated the salesman as a result of his independent action. This is in no way reflective of typical business practices at D&D.”

But prosecutors said that wasn’t an isolated incident and that the dealership knowingly sold other storm-damaged cars.

When prosecutors filed the charges last year, they said the dealership acquired eight vehicles at auction that sustained flood damage during Sandy and were auctioned by an insurance company “for parts only,” but the defendants allegedly had fraudulent “clean” titles issued for the vehicles and sold seven of them to customers who were unaware of the flood damage.

Jack Douek, the D&D Auto Sales salesman who sold the car to the undercover ABC’s The Lookout producer, now faces three pending charges, including conspiracy to commit theft by deception. ABC News’ requests for comment from Douek were not returned.

The New Jersey attorney general revealed an employee of the Freehold Motor Vehicle Agency, Jessie Dinome, was using a state computer to create false clean titles for the flood cars. She pleaded guilty and faces up to a year in county jail.

New Jersey Attorney General John Hoffman said in a news release last year that the New Jersey Motor Vehicle Commission referred the case to the state’s Division of Criminal Justice after ABC News aired its investigative report on flood vehicles ending up on used car lots. The vehicle commission also received information from the National Salvage Vehicle Reporting Program.

An estimated 250,000 cars were submerged for days in corrosive saltwater after Sandy pummeled the Northeast in October 2012, according to the National Insurance Crime Bureau.

CarFax estimates that more than 100,000 Sandy-damaged vehicles ended up back on the road.

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American Airlines Taking Fares Off Orbitz

American Airlines Taking Fares Off Orbitz

American Airlines Newsroom(NEW YORK) — American Airlines says it is pulling fares from consumer travel site Orbitz.com.

The air carrier has announced it will withdraw the fares for American Airlines and U.S. Airways, effective September 1.

A statement from American Airlines says it had tried reach a deal with Orbitz but the economics would not allow it to compete with the low-cost carriers.

The airline says the move will not impact flights that have already been booked and will not affect corporate clients that use Orbitz for business.

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