C M Y K · 2021-06-13  · deception over Vietnam, 50 years later. SPECIAL SECTION Public Lies,...

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U(D547FD)v+$![!_!$!# The Danish midfielder Christian Erik- sen collapsed on the field during a match against Finland. PAGE 30 SPORTS 29-31 Frightening Moment at Euros The papers that exposed the official deception over Vietnam, 50 years later. SPECIAL SECTION Public Lies, Secret Truth Twentysomethings in New York, full of pent-up energy, are looking ahead to a summer that promises social and creative rebirth. PAGE 1 SUNDAY STYLES The Youthquake Is Coming A look at the multibillion-dollar race to put commuters in flying cars. “Our dream is to free the world from traffic,” one engineer said. PAGE 1 SUNDAY BUSINESS Remember ‘The Jetsons’? The prime minister has long been able to shift the narrative in times of crisis, but anger over his response to Covid has him struggling to be heard. PAGE 4 INTERNATIONAL 4-14 A Muted Modi in India The Kentucky artist Hannah Drake’s Un(Known) Project memorializes those who were enslaved, and offers up a challenge for today. PAGE 11 ARTS & LEISURE Footsteps to Freedom Families were long haunted by a series of killings of New Jersey teenagers. But a detective had a theory. PAGE 1 METROPOLITAN Hunch Pays Off in Cold Cases A survey of chief executives at public companies found some of the biggest compensation packages ever. PAGE 1 A Widening Paycheck Gap There were two weeks left in the Trump administration when the Treasury Department handed down a set of rules governing an obscure corner of the tax code. Overseen by a senior Treasury official whose previous job in- volved helping the wealthy avoid taxes, the new regulations repre- sented a major victory for private equity firms. They ensured that executives in the $4.5 trillion in- dustry, whose leaders often meas- ure their yearly pay in eight or nine figures, could avoid paying hundreds of millions in taxes. The rules were approved on Jan. 5, the day before the riot at the U.S. Capitol. Hardly anyone noticed. The Trump administration’s farewell gift to the buyout indus- try was part of a pattern that has spanned Republican and Demo- cratic presidencies and Con- gresses: Private equity has con- quered the American tax system. The industry has perfected sleight-of-hand tax-avoidance strategies so aggressive that at least three private equity officials have alerted the Internal Revenue Service to potentially illegal tac- tics, according to people with di- rect knowledge of the claims and documents reviewed by The New York Times. The previously unre- ported whistle-blower claims in- volved tax dodges at dozens of pri- vate equity firms. But the I.R.S., its staff hollowed out after years of budget cuts, has thrown up its hands when it comes to policing the politically powerful industry. While intensive examinations of large multinational companies are common, the I.R.S. rarely con- ducts detailed audits of private eq- uity firms, according to current and former agency officials. Such audits are “almost non- existent,” said Michael Desmond, who stepped down this year as the I.R.S.’s chief counsel. The agency “just doesn’t have the resources and expertise.” One reason they rarely face au- dits is that private equity firms have deployed vast webs of part- nerships to collect their profits. Partnerships do not owe income taxes. Instead, they pass those ob- ligations on to their partners, who can number in the thousands at a large private equity firm. That makes the structures notoriously complicated for auditors to untan- gle. Increasingly, the agency does- n’t bother. People earning less than $25,000 are at least three times more likely to be audited than partnerships, whose income flows overwhelmingly to the rich- U.S. Loses Billions in Taxes To Private Equity Industry Whistle-Blowers Allege Illegal Dodges, but Audits Are ‘Almost Nonexistent’ By JESSE DRUCKER and DANNY HAKIM Charles Rettig, the I.R.S. com- missioner, testified last week. POOL PHOTO BY TOM WILLIAMS Continued on Page 18 PLYMOUTH, England — Presi- dent Biden urged European na- tions and Japan on Saturday to counter China’s growing eco- nomic and security influence by offering developing nations hun- dreds of billions in financing as an alternative to relying on Beijing for new roads, railways, ports and communications networks. It was the first time the world’s richest nations had discussed or- ganizing a direct alternative to China’s Belt-and-Road Initiative, President Xi Jinping’s overseas lending and investment push, which has now spread across Afri- ca, Latin America and into Europe itself. But the White House cited no financial commitments, and there is sharp disagreement among the United States and its allies about how to respond to Chi- na’s rising power. Mr. Biden has made challeng- ing a rising China and a disruptive Russia the centerpiece of a foreign policy designed to build up de- mocracies around the world as a bulwark against spreading au- thoritarianism. Beijing, for its part, has pointed to the poor U.S. response to the pandemic and di- visive American politics — partic- ularly the Jan. 6 riot at the Capitol — as signs that democracy is fail- ing. In size and ambition, the Chi- nese development effort far sur- passes the Marshall Plan, the United States’ program to rebuild Europe after World War II. At the Group of 7 summit meeting, dis- cussions on Saturday about how to counter it reflected the debate within the West about whether to Counter China On Foreign Aid, Biden Urges G7 By DAVID E. SANGER and MARK LANDLER Continued on Page 9 A year ago, the left wing of New York’s Democratic Party was as- cendant. Deeply progressive can- didates triumphed in state legisla- tive primaries and won a congres- sional upset, activists fueled a movement to rein in the power of the police, and Mayor Bill de Bla- sio agreed to cut the Police De- partment budget. But for most of the Democratic primary season this spring, nearly every available metric has suggested that the political ener- gy has shifted. The question is, by how much. The June 22 primary contests for mayor and other city offices are critical, if imperfect, tests of the mood of Democratic voters on the cusp of a summer that many experts believe will be marked by high rates of gun violence in cities across the United States. The Democratic race for mayor has in some ways reflected na- tional tensions within the party over how far to the left its leaders should tack, after President Biden won the party’s nomination on the strength of moderate Black voters and older Americans, and Repub- licans secured surprising down- ballot general election victories. Now, a version of that debate is playing out even in overwhelm- ingly liberal New York City, where the Democratic primary winner will almost certainly become the next mayor. The primary under- scores how the battle for the par- ty’s direction extends far beyond concerns over defeating Republi- cans. Polls have increasingly shown that combating crime is the top New York’s Shift To Left Is Tested In Mayor’s Race By KATIE GLUECK and JONAH E. BROMWICH Continued on Page 22 Since the season began in April, Major League Baseball’s umpires and league officials have been col- lecting baseballs by the thou- sands. Balls from games are in- spected, with the most suspicious specimens being sent to an inde- pendent laboratory for analysis. A forensic investigation found that a majority of those balls had some kind of illegal foreign sub- stance — presumably applied through sleight of hand by a pitcher on the mound — with tests still being done to determine ex- actly what was placed on them. The purpose of the substance is fairly clear: To help pitchers make the baseball curve, dip and hop more than it normally would. The study of the balls is part of a wider investigation, which has in- volved video, high-tech analysis of the rate of spin on pitches and witness accounts. It is the latest — and currently loudest — cheating scandal in a sport that seems to have a new one every few years. After the sport dealt with illegal steroids and illicit sign-stealing, now comes foreign substances on baseballs, a skyrocketing trend that is believed to have played a key role in turning the sport into a Baseball Faces Integrity Crisis: Doctored Balls By DAVID WALDSTEIN Continued on Page 30 Late Edition VOL. CLXX . . . No. 59,088 © 2021 The New York Times Company NEW YORK, SUNDAY, JUNE 13, 2021 Suddenly, she heard a loud bang, then screams, as the overpass collapsed and the train plummeted about 40 feet to the street below. When Tania came to, her neck was wedged between the doors of the metro, her head poking out of the wreck- age, the smell of blood curling into her nostrils. Bodies strewn on top of her, her out- stretched hands felt what seemed to be the straps of her sister’s backpack. As she pulled, she said, she discovered they were the entrails of another passenger. Tania now spends her days in the hospi- tal, unable to walk, her shattered pelvis held together by a metal contraption, four screws poking out of each side of her body. MEXICO CITY — On a balmy night in May, Tania Lezama Salgado hopped on the metro with her sister Nancy after spending hours looking for the grandest pink dress and the sparkliest shoes possi- ble for her 15th birthday party. Tania had grown accustomed to the screeches and shakes of the metro, but as it barreled across an overpass that night — jerking violently, going faster than she had ever remembered — something felt different. Above her hospital bed is a photo of her 22-year-old sister Nancy — one of 26 peo- ple who died in the metro crash that night. Soon after, President Andrés Manuel López Obrador of Mexico, who positions himself as a champion of the poor and an enemy of the elite, apologized to the vic- tims’ families and urged patience while of- ficials examined what went wrong, and who was to blame. “The humble, hard-working, good peo- ple understand that, unfortunately, these things happen,” he said during a news conference on Tuesday. But a New York Times investigation — ‘They should be held responsible for what happened, for everything, for everyone who died.’ BERNARDA SALGADO LÓPEZ, who lost a daughter in the Mexico City subway crash The section of the Mexico City metro that collapsed on May 3, sending a train plunging to the street and killing 26 people. ALEJANDRO CEGARRA FOR THE NEW YORK TIMES A Metro Disaster From the Start How Construction Flaws and Political Pressure Doomed Mexico City’s Subway This article is by Natalie Kitroeff, Maria Abi-Habib, James Glanz, Oscar Lopez, Weiyi Cai, Evan Grothjan, Miles Peyton and Ale- jandro Cegarra. Continued on Page 12 Last summer, as diners stayed home, oyster farmers feared bankruptcy. This year, sales are booming. PAGE 15 NATIONAL 15-24 Cashing In on a Briny Bonanza The F.B.I. recently announced coups involving a Bitcoin recovery and a sting using an encrypted app. PAGE 19 High-Tech Race Against Crime Allen Nelson IV walked to the front of his small church in central Arkansas, stopped in front of the communion table with three large crosses behind him, and unfurled a giant black flag with a white skull and crossed swords. For several years, the pastor and father of five had felt that too many of his fellow Christians were drifting unmistakably leftward on issues of race, gender and the strict authority of the Bible. The flag was a gift from a friend, ener- gized — like Mr. Nelson — by the idea of heroically reclaiming the faith. It was time, he believed, to “take the ship.” “We’re fighting for the very heart of the Southern Baptist Con- vention,” Mr. Nelson said in an in- terview. “For a long time what I thought a good Southern Baptist pastor should do was to send money and trust the system. We can’t do that anymore.” Mr. Nelson is not alone. He is part of an ultraconservative popu- list uprising of pastors from Loui- siana to California threatening to With Southern Baptists in Revolt, a Split Looms By RUTH GRAHAM and ELIZABETH DIAS Continued on Page 20 MARTIN BUREAU/AGENCE FRANCE-PRESSE — GETTY IMAGES Barbora Krejcikova remembered her mentor, Jana Novotna, after winning the French Open. Page 31. Unseeded Champion Gives Thanks Amid transfer talk and the European Championship, Harry Kane reveals only what he wants you to see. PAGE 29 England’s Enigmatic Captain Today, clouds and sunshine, high 75. Tonight, cloudy, a few showers and thunderstorms, low 64. Tomorrow, partly sunny, passing showers, high 77. Weather map is on Page 25. $6.00

Transcript of C M Y K · 2021-06-13  · deception over Vietnam, 50 years later. SPECIAL SECTION Public Lies,...

Page 1: C M Y K · 2021-06-13  · deception over Vietnam, 50 years later. SPECIAL SECTION Public Lies, Secret Truth Twentysomethings in New York, full of pent-up energy, are looking ahead

C M Y K Nxxx,2021-06-13,A,001,Bs-4C,E2

U(D547FD)v+$![!_!$!#

The Danish midfielder Christian Erik-sen collapsed on the field during amatch against Finland. PAGE 30

SPORTS 29-31

Frightening Moment at Euros

The papers that exposed the officialdeception over Vietnam, 50 years later.

SPECIAL SECTION

Public Lies, Secret Truth

Twentysomethings in New York, full ofpent-up energy, are looking ahead to asummer that promises social andcreative rebirth. PAGE 1

SUNDAY STYLES

The Youthquake Is ComingA look at the multibillion-dollar race toput commuters in flying cars. “Ourdream is to free the world from traffic,”one engineer said. PAGE 1

SUNDAY BUSINESS

Remember ‘The Jetsons’?The prime minister has long been ableto shift the narrative in times of crisis,but anger over his response to Covidhas him struggling to be heard. PAGE 4

INTERNATIONAL 4-14

A Muted Modi in India

The Kentucky artist Hannah Drake’sUn(Known) Project memorializes thosewho were enslaved, and offers up achallenge for today. PAGE 11

ARTS & LEISURE

Footsteps to Freedom

Families were long haunted by a seriesof killings of New Jersey teenagers. Buta detective had a theory. PAGE 1

METROPOLITAN

Hunch Pays Off in Cold Cases

A survey of chief executives at publiccompanies found some of the biggestcompensation packages ever. PAGE 1

A Widening Paycheck Gap

There were two weeks left in theTrump administration when theTreasury Department handeddown a set of rules governing anobscure corner of the tax code.

Overseen by a senior Treasuryofficial whose previous job in-volved helping the wealthy avoidtaxes, the new regulations repre-sented a major victory for privateequity firms. They ensured thatexecutives in the $4.5 trillion in-dustry, whose leaders often meas-ure their yearly pay in eight ornine figures, could avoid payinghundreds of millions in taxes.

The rules were approved onJan. 5, the day before the riot atthe U.S. Capitol. Hardly anyonenoticed.

The Trump administration’sfarewell gift to the buyout indus-try was part of a pattern that hasspanned Republican and Demo-cratic presidencies and Con-gresses: Private equity has con-quered the American tax system.

The industry has perfectedsleight-of-hand tax-avoidancestrategies so aggressive that atleast three private equity officialshave alerted the Internal RevenueService to potentially illegal tac-tics, according to people with di-rect knowledge of the claims anddocuments reviewed by The NewYork Times. The previously unre-ported whistle-blower claims in-volved tax dodges at dozens of pri-vate equity firms.

But the I.R.S., its staff hollowedout after years of budget cuts, hasthrown up its hands when it comesto policing the politically powerfulindustry.

While intensive examinationsof large multinational companies

are common, the I.R.S. rarely con-ducts detailed audits of private eq-uity firms, according to currentand former agency officials.

Such audits are “almost non-existent,” said Michael Desmond,who stepped down this year as theI.R.S.’s chief counsel. The agency“just doesn’t have the resourcesand expertise.”

One reason they rarely face au-dits is that private equity firmshave deployed vast webs of part-nerships to collect their profits.Partnerships do not owe incometaxes. Instead, they pass those ob-ligations on to their partners, whocan number in the thousands at alarge private equity firm. Thatmakes the structures notoriouslycomplicated for auditors to untan-gle.

Increasingly, the agency does-n’t bother. People earning lessthan $25,000 are at least threetimes more likely to be auditedthan partnerships, whose incomeflows overwhelmingly to the rich-

U.S. Loses Billions in TaxesTo Private Equity Industry

Whistle-Blowers Allege Illegal Dodges, butAudits Are ‘Almost Nonexistent’

By JESSE DRUCKER and DANNY HAKIM

Charles Rettig, the I.R.S. com-missioner, testified last week.

POOL PHOTO BY TOM WILLIAMS

Continued on Page 18

PLYMOUTH, England — Presi-dent Biden urged European na-tions and Japan on Saturday tocounter China’s growing eco-nomic and security influence byoffering developing nations hun-dreds of billions in financing as analternative to relying on Beijingfor new roads, railways, ports andcommunications networks.

It was the first time the world’srichest nations had discussed or-ganizing a direct alternative toChina’s Belt-and-Road Initiative,President Xi Jinping’s overseaslending and investment push,which has now spread across Afri-ca, Latin America and into Europeitself. But the White House citedno financial commitments, andthere is sharp disagreementamong the United States and itsallies about how to respond to Chi-na’s rising power.

Mr. Biden has made challeng-ing a rising China and a disruptiveRussia the centerpiece of a foreignpolicy designed to build up de-mocracies around the world as abulwark against spreading au-thoritarianism. Beijing, for itspart, has pointed to the poor U.S.response to the pandemic and di-visive American politics — partic-ularly the Jan. 6 riot at the Capitol— as signs that democracy is fail-ing.

In size and ambition, the Chi-nese development effort far sur-passes the Marshall Plan, theUnited States’ program to rebuildEurope after World War II. At theGroup of 7 summit meeting, dis-cussions on Saturday about howto counter it reflected the debatewithin the West about whether to

Counter ChinaOn Foreign Aid,Biden Urges G7

By DAVID E. SANGERand MARK LANDLER

Continued on Page 9

A year ago, the left wing of NewYork’s Democratic Party was as-cendant. Deeply progressive can-didates triumphed in state legisla-tive primaries and won a congres-sional upset, activists fueled amovement to rein in the power ofthe police, and Mayor Bill de Bla-sio agreed to cut the Police De-partment budget.

But for most of the Democraticprimary season this spring,nearly every available metric hassuggested that the political ener-gy has shifted. The question is, byhow much.

The June 22 primary contestsfor mayor and other city officesare critical, if imperfect, tests ofthe mood of Democratic voters onthe cusp of a summer that manyexperts believe will be marked byhigh rates of gun violence in citiesacross the United States.

The Democratic race for mayorhas in some ways reflected na-tional tensions within the partyover how far to the left its leadersshould tack, after President Bidenwon the party’s nomination on thestrength of moderate Black votersand older Americans, and Repub-licans secured surprising down-ballot general election victories.

Now, a version of that debate isplaying out even in overwhelm-ingly liberal New York City, wherethe Democratic primary winnerwill almost certainly become thenext mayor. The primary under-scores how the battle for the par-ty’s direction extends far beyondconcerns over defeating Republi-cans.

Polls have increasingly shownthat combating crime is the top

New York’s ShiftTo Left Is TestedIn Mayor’s Race

By KATIE GLUECKand JONAH E. BROMWICH

Continued on Page 22

Since the season began in April,Major League Baseball’s umpiresand league officials have been col-lecting baseballs by the thou-sands. Balls from games are in-spected, with the most suspiciousspecimens being sent to an inde-pendent laboratory for analysis.

A forensic investigation foundthat a majority of those balls hadsome kind of illegal foreign sub-stance — presumably appliedthrough sleight of hand by apitcher on the mound — with testsstill being done to determine ex-actly what was placed on them.The purpose of the substance isfairly clear: To help pitchers makethe baseball curve, dip and hopmore than it normally would.

The study of the balls is part of awider investigation, which has in-volved video, high-tech analysisof the rate of spin on pitches andwitness accounts. It is the latest —and currently loudest — cheatingscandal in a sport that seems tohave a new one every few years.

After the sport dealt with illegalsteroids and illicit sign-stealing,now comes foreign substances onbaseballs, a skyrocketing trendthat is believed to have played akey role in turning the sport into a

Baseball FacesIntegrity Crisis:Doctored Balls

By DAVID WALDSTEIN

Continued on Page 30

Late Edition

VOL. CLXX . . . No. 59,088 © 2021 The New York Times Company NEW YORK, SUNDAY, JUNE 13, 2021

Suddenly, she heard a loud bang, thenscreams, as the overpass collapsed andthe train plummeted about 40 feet to thestreet below. When Tania came to, herneck was wedged between the doors of themetro, her head poking out of the wreck-age, the smell of blood curling into hernostrils.

Bodies strewn on top of her, her out-stretched hands felt what seemed to bethe straps of her sister’s backpack. As shepulled, she said, she discovered they werethe entrails of another passenger.

Tania now spends her days in the hospi-tal, unable to walk, her shattered pelvisheld together by a metal contraption, fourscrews poking out of each side of her body.

MEXICO CITY — On a balmy night inMay, Tania Lezama Salgado hopped onthe metro with her sister Nancy afterspending hours looking for the grandestpink dress and the sparkliest shoes possi-ble for her 15th birthday party.

Tania had grown accustomed to thescreeches and shakes of the metro, but asit barreled across an overpass that night— jerking violently, going faster than shehad ever remembered — something feltdifferent.

Above her hospital bed is a photo of her22-year-old sister Nancy — one of 26 peo-ple who died in the metro crash that night.

Soon after, President Andrés ManuelLópez Obrador of Mexico, who positionshimself as a champion of the poor and anenemy of the elite, apologized to the vic-tims’ families and urged patience while of-ficials examined what went wrong, andwho was to blame.

“The humble, hard-working, good peo-ple understand that, unfortunately, thesethings happen,” he said during a newsconference on Tuesday.

But a New York Times investigation —

‘They should be held responsible for what happened, for everything, for everyone who died.’BERNARDA SALGADO LÓPEZ, who lost a daughter in the Mexico City subway crash

The section of the Mexico City metro that collapsed on May 3, sending a train plunging to the street and killing 26 people.ALEJANDRO CEGARRA FOR THE NEW YORK TIMES

A Metro Disaster From the StartHow Construction Flaws and Political Pressure Doomed Mexico City’s SubwayThis article is by Natalie Kitroeff, Maria

Abi-Habib, James Glanz, Oscar Lopez, WeiyiCai, Evan Grothjan, Miles Peyton and Ale-jandro Cegarra.

Continued on Page 12

Last summer, as diners stayed home,oyster farmers feared bankruptcy. Thisyear, sales are booming. PAGE 15

NATIONAL 15-24

Cashing In on a Briny Bonanza

The F.B.I. recently announced coupsinvolving a Bitcoin recovery and a stingusing an encrypted app. PAGE 19

High-Tech Race Against Crime

Allen Nelson IV walked to thefront of his small church in centralArkansas, stopped in front of thecommunion table with three largecrosses behind him, and unfurleda giant black flag with a whiteskull and crossed swords.

For several years, the pastor

and father of five had felt that toomany of his fellow Christians weredrifting unmistakably leftward onissues of race, gender and thestrict authority of the Bible. Theflag was a gift from a friend, ener-gized — like Mr. Nelson — by theidea of heroically reclaiming thefaith.

It was time, he believed, to“take the ship.”

“We’re fighting for the very

heart of the Southern Baptist Con-vention,” Mr. Nelson said in an in-terview. “For a long time what Ithought a good Southern Baptistpastor should do was to sendmoney and trust the system. Wecan’t do that anymore.”

Mr. Nelson is not alone. He ispart of an ultraconservative popu-list uprising of pastors from Loui-siana to California threatening to

With Southern Baptists in Revolt, a Split Looms

By RUTH GRAHAMand ELIZABETH DIAS

Continued on Page 20

MARTIN BUREAU/AGENCE FRANCE-PRESSE — GETTY IMAGES

Barbora Krejcikova remembered her mentor, Jana Novotna, after winning the French Open. Page 31.Unseeded Champion Gives Thanks

Amid transfer talk and the EuropeanChampionship, Harry Kane reveals onlywhat he wants you to see. PAGE 29

England’s Enigmatic Captain

Today, clouds and sunshine, high 75.Tonight, cloudy, a few showers andthunderstorms, low 64. Tomorrow,partly sunny, passing showers, high77. Weather map is on Page 25.

$6.00