Ride promoter gets $360,000 off the top; overhead costs top $2 million
NAPWA says water in six cities poses risks
Firm offering AIDS cure charged with fraud
Event overhead costs top $2 million
Half of the payment to Pallotta comes from Philadelphia area pledges to the event, with the other half collected from the proceeds targeted to Washington.
In addition, Pallotta confirmed to the Philadelphia Inquirer that 40% of the Ride's projected proceeds of $4.2 million is spent on other consultant and promotion contracts and other expenses related to the Ride, such as newspaper and other advertising, promotional materials and staff salaries. The overhead costs total $1,680,000, according to Pallotta's figures.
The AIDS Ride promoters hope to attract a minimum of 3,000 bikers to the event, each required to bring in a minimum of $1,400 in pledges. The $1.7 million in overhead costs -- as well as the $360,000 paid to Pallotta himself -- come off the top of all the proceeds raised, even if the total amount raised is less than the $4.2 million goal.
Local beneficiaries of the AIDS Ride are ActionAIDS, the AIDS Information Network, and Philadelphia Community Health Alternatives. A fourth beneficiary, From All Walks of Life, pulled out of the event earlier this week, blaming the "vicious political infighting" which has developed over claims by the Minority AIDS Coalition that Pallotta and the three Philadelphia organizations have actively excluded minority-led organizations from benefiting from the proceeds.
Several hundred people living with HIV/AIDS and their supporters, mostly African Americans and Latinos, staged a press conference and rally in North Philadelphia Thursday morning to protest the failure of the Ride promoters to involve minority-led organizations in the event.
James Roberts, executive director of the Minority AIDS Project of Philadelphia and Vicinity, the direct service arm of MAC, and other speakers at the rally called for a boycott of the Ride and of Tanqueray, the liquor manufacturer which is the main corporate sponsor of the event. They said that since the AIDS epidemic is overwhelmingly impacting on the African American and Latino communities in Philadelphia -- over 80% of diagnosed cases since 1992 -- the Minority AIDS Project should have not have been prevented from joining the sponsorship of the Ride when they approached Pallotta for inclusion last year.
Roberts said that a representative of the Ride had invited MAPP to make a bid for participation last year, but that MAPP had been rebuffed in its attempt to follow up on that invitation by Pallotta and the three local beneficiaries ever since.
Ennes Littrell, executive director of ActionAIDS, criticized MAPP's attacks on the Ride benefit, telling the Inquirer that MAPP's protest was based on its desire to "enrich" its 30 member organizations.
The annual budget for ActionAIDS alone is double the total amount of government funding for all minority-led AIDS agencies put together, according to city documents. Littrell has been severely critical of minority-led AIDS efforts in the past. In her eight years as director of the agency, no people of color have been employed by ActionAIDS in management or leadership positions at the agency, even though most of its clients are people of color.
Littrell told media representatives that since the clientele of the beneficiary groups was mostly people of color, the fact that none of the three agencies has people of color in significant positions at the agencies should not be relevant.
Meanwhile, city health commissioner Estelle Richman announced that she will attempt to mediate the Ride controversy, although she was not hopeful of a solution. "I need to figure out where there is room for compromise," she told the Inquirer. "I have no clue how I'm going to resolve it, but I'm going to try."
At Thursday's rally in North Philadelphia, Ride opponents -- including Roberts, Steve Pina and Rev. Henry Wells of One Day At A Time, We The People executive director Joe Cronauer and former WTP director David Fair, all expressed confidence that Richman could facilitate a discussion among the competing groups to fashion a solution to the controversy.
Each of the three beneficiary organizations will be awarded 25% of the proceeds remaining from the event after the $2 million payments to Pallotta and for overhead expenses. The action of the board of From All Walks of Life to withdraw from the event means that its 25% portion is now unallocated.
Study finds new HIV risk
Research with monkeys found that a hormone related to one used in popular injectable contraceptive drugs dramatically increased the risk of vaginal infection by an AIDS-like virus, scientists reported this month.
The study at the Aaron Diamond AIDS Research Center in New York City demonstrated that monkeys injected with progesterone were seven times more likely to become infected when exposed vaginally to simian immune deficiency virus, or SIV.
"It was a very striking result and one that we did not anticipate," said Dr. Preston Marx of the New York University School of Medicine, leader of the research team.
Marx said earlier animal studies found that progesterone and related synthetic compounds can cause the lining of the vagina to become thinner. He said his team conducted the new study on monkeys to determine whether the change in the lining made it easier for virus to cross the mucous membrane barrier within the vagina and then infect cells in the circulating blood.
In the study, pellets of progesterone were implanted under the skin of 18 female rhesus monkeys. Ten other female monkeys received only a placebo. All of the monkeys were then exposed vaginally to SIV, a virus that causes an AIDS-like disease in monkeys. SIV is closely related to HIV.
After 21 days, 14 of the 18 monkeys that received the progesterone were infected with SIV. Only one of the 10 monkeys in the placebo group was infected.
In an interview, Marx said the study demonstrates that the thinning of the vaginal wall by progesterone increases the ability of the virus to cause infection in monkeys.
"The vaginal lining is a strong barrier against infection. That's the way it is supposed to function," he said. "Progesterone will thin that barrier."
Progesterone is a natural hormone produced by the ovaries. Two contraceptives marketed in the United States, Depo-Provera and Norplant, contain synthetic hormones called progestins that mimic many of the effects of progesterone. About 1.5 million American women use Depo-Provera and about 1 million use Norplant.
Marx said human studies need to be conducted to determine whether women taking these drugs are at increased risk of HIV.
"Nobody knows if the women will have this marked effect that we have seen in the monkeys, but that is the implication," he said. "We have to set up human experiments and do it as quickly as we can."
Oral contraceptives, which are the type most widely used in the United States, do not have the same effect on the vaginal lining as the injected contraceptives, said Marx. The formula of the pills includes estrogen, which tends to thicken the lining, and he said this may offset the thinning effects of the progesterone.
Wyeth-Ayerst Laboratories, which makes Norplant, said in a statement that it is reviewing the research and "gives serious consideration" to a human study.
Kaye Bennett of Pharmacia & Upjohn Inc., maker of Depo-Provera, said that "as with any animal study, we don't know if there will be a direct application to women or to their partners."
Both companies said Marx's study emphasizes the need for women to practice safe sex by using a condom and that contraceptive drugs do not protect against sexually transmitted diseases.
Dr. Duane Alexander, director of the National Institute of Child Health and Human Development, which funded the monkey study, said his agency was "moving as quickly as possible to follow up on these research findings."
"We need to understand the transmission mechanism that is apparently at work in these cases and we need to determine whether it may be applicable to humans," Alexander said in a statement.
Federal health officials said women now successfully using a contraceptive should continue, but that only abstinence or condoms protect against AIDS or other sexually transmitted diseases.
Alexander noted that Marx used natural progesterone in his study and it is not known if the synthetic progestin, used in the contraceptives, will have the same effect.
Marx said a study is planned in which biopsies will be taken periodically from women volunteers to determine if progestin thins the vaginal lining.
NAPWA says water in six cities poses risks
Drinking water in six U.S. cities poses a risk to people with weakened immunity systems, such as those who are HIV-positive or have AIDS, the National Association of People with AIDS announced this month.
The National Association of People With AIDS said its survey showed that water in Atlanta, Dallas, Minneapolis, Newark, New Jersey; St. Petersburg, Florida, and Washington is at high risk for contamination by Cryptosporidium, a parasite found in human and animal feces.
In 1993, Cryptosporidium in Milwaukee's water supply sickened some 400,000 people and contributed to more than 100 deaths, mostly of people who were HIV-positive.
The advocacy group said it conducted telephone surveys from March 20 to April 18 to get information on 31 major cities with high concentrations of people with HIV or AIDS. Its report based risks on the frequency of water testing, the amount of information available to the public and to people with weakened immune systems, the presence of early warning systems if Cryptosporidium is detected and a positive identification of Cryptosporidium in the past year.
Beside the six cities it said posed an "extremely high risk," 22 were at high risk and just three were at low risk.
The group said people with weakened immune systems living in the six top-risk cities should boil tap water or drink bottled water and use under-the-sink or direct-faucet filters.
Of the six highest risk cities, the survey said Atlanta, Minneapolis and St. Petersburg do not test their water for Cryptosporidium and Newark tests only quarterly. It said Washington is facing a review by the Environmental Protection Agency while Dallas has no AIDS education programs and has all but eliminated any notification system between city health officials and the water department.
Milwaukee, which now tests for the parasite every two weeks, along with Seattle and Tampa, Florida, were considered at low risk of outbreaks.
There currently is no federal requirement for water systems to check for Cryptosporidium or other microbial contamination, although many cities voluntarily monitor for the parasite. But the EPA said that, starting early next year, it will require systems serving more than 100,000 people to check for microbial contamination to provide information for the agency to develop standards and regulations.
"Today's action will result in more information than ever about drinking water contaminants that have thus far defied treatment and presented public health officials with one of our most important challenges," EPA Administrator Carol Browner said in a statement.
Meanwhile, the Pennsylvania state departments of Environmental Protection (DEP) and Health have announced an education campaign to inform drinking water suppliers and the medical community about Cryptosporidium.
"For the general population, cryptosporidium poses little or no health risk," Acting Secretary of the Department of Health Daniel F. Hoffmann, said. "However, those people at risk, mainly the very young or old or those with compromised immune systems who want to protect themselves, may want to bring their water to a rolling boil for one minute before using it for drinking or cooking."
As part of the education campaign, information on Cryptosporidium has been shared with those organizations that deal with high-risk populations such as medical organizations, nursing homes, AIDS service groups and major cancer treatment and organ transplant centers. In addition, the federal Centers for Disease Control currently provides recorded messages and printed materials through a voice-fax Cryptosporidiosis Information Line at 404-330-1242.
A copy of the Cryptosporidium Action Plan has also been distributed to all 360 public water suppliers in Pennsylvania.
Cryptosporidium is prevalent in surface waters such as streams and lakes. Recent studies show it is present in 65-97 percent of surface waters tested throughout the United States. Cryptosporidium is also highly resistant to chemical disinfectants used in the treatment of drinking water, therefore physical removal of the parasite from water is an important component of the drinking water treatment process. All Pennsylvania public water supply systems using surface water are required to both filter and chemically treat their drinking water.
"The challenge posed by Cryptosporidium in source waters is pushing the limits of conventional drinking water treatment," DEP Secretary James M. Seif said. "Currently, the best known defense against the outbreak of waterborne diseases, including Cryptosporidium, is a well-run, well-maintained drinking water treatment plant"
The detection of Cryptosporidium is particularly difficult and unreliable. Current laboratory methods cannot precisely determine if oocysts are viable or infectious for humans. However, if Cryptosporidium is detected in any public finished water supply, the results must be reported to DEP. The department then conducts a Filter Plant Performance Evaluation immediately to assess plant operations and the need for further action, such as a boil water advisory or treatment modifications.
Through the Filter Plant Performance Evaluation Program, DEP conducts detailed evaluations of surface water treatment plants to help them maximize their effectiveness in removing contaminants from their finished water supplies. Under the program, the number of systems receiving an "acceptable" performance rating has doubled to an all time high of 90 percent.
Currently, the state Health Department tracks reported cases of Cryptosporidiosis to determine any area-wide trends that may implicate water treatment failure. The department is also exploring the establishment of a Cryptosporidium early warning system that uses computerized data from local pharmacies to track sales of anti-diarrhea medications, an indication of excessive cases of gastrointestinal illnesses.
As an alternative to boiling their water, people with compromised immune systems may want to use tap filtration devices to filter their water. The devises should be certified by the National Sanitation Foundation (NSF) International to be capable of "cyst reduction" or removing particles down to one micron in size. The foundation operates a toll-free hot line at 800-673-8010.
National AIDS lobby day set
ACT UP/Philadelphia has been asked to be the Pennsylvania Coordinator for AIDSWatch, an annual lobby event drawing hundreds of members of the HIV/AIDS community from across the country to Washington from Sunday, May 19 to Tuesday, May 21. ACT UP is sharing this duty with the Pennsylvania Coalition of AIDS Service Organizations (PCASO). The National Association of People With AIDS (NAPWA) is the national sponsor of AIDSWatch. The goal this year is to have at least two representatives from every legislative district in the United States. ACT UP and PCASO will help schedule lobbying appointments with Representatives and Senators, in addition to providing information about current issues.
A planning session for local participants in AIDSWatch, led by PCASO director Bruce Flannery, will be held on Monday, May 13th, at St. Luke's Church, 330 S. 13th St. (on 13th between Pine & Spruce), beginning at 7:30 p.m.
For more information, call 215-731-1844.
Firm offering AIDS cure charged with fraud
The Securities and Exchange Commission has sued a Pennsylvania company for enticing people infected with HIV to buy its stock in return for lifetime free treatments with an unapproved AIDS therapy.
The SEC alleged that Lazare Industries Inc. and its chairman and chief executive, Richard Harley, convinced at least 72 investors to buy $1.4 million worth of securities in the company.
The SEC sued the company in federal court in Scranton, Pa., charging it violated federal securities laws for selling unregistered securities and misusing investor funds.
The agency said federal Judge Thomas Venaskie issued a temporary restraining order against the defendants, Harley and Lazare Industries, freezing their assets.
The SEC said the investors bought the stock based on the company's claim that its "ozone/oxygen therapy" had undergone extensive testing and was patented. Lazare is located in Marshalls Creek, Pa., and was formed in 1989.
The testing allegedly proved the therapy was effective in treating AIDS and other maladies, including yeast infections, chronic sleep disorder, chronic fatigue syndrome, Gulf War syndrome and common allergies.
But the SEC said Lazare's therapy was not patented and the defendants lacked approval from the federal Food and Drug Administration to clinically test or administer it.
The defendants also concealed from investors that the federal regulatory agency had previously ruled the promotion and use of the therapy on patients was in violation of federal food and drug law, the SEC said.
Reached by phone, Harley's office said the executive declined to comment.
The SEC said Harley encouraged mainly people with HIV to visit Lazare's clinic. Once in the clinic, Harley allegedly asked the visitors, some of whom were desperately in search of a cure for AIDS, to buy shares of Lazare, which would entitle them to free lifetime treatment with the therapy. The SEC said Harley also allegedly promised investors "huge returns" from a planned nationwide expansion of his clinics.
The SEC said the company sold stock worth $1.4 million, of which at least $477,000 had been collected. The company also promoted its "treatment" for AIDS and other diseases in advertisements and on the Internet.
The SEC alleged that the defendants violated an order by Pennsylvania regulators to halt their share offering. The agency said it is seeking a permanent injunction, return of the money collected from investors and civil penalties against Lazare and Harley.
The SEC also asked the court that Jacqueline Kube return money that was raised in the offering. Kube, identified in court papers as the common-law wife of Harley, serves as vice president and a director of Lazare. She was not charged with any wrongdoing.