Giffords makes return to Washington for ceremony (AP)

WASHINGTON – Looking thrilled to be among friends and colleagues, Democratic Rep. Gabrielle Giffords returned to Washington on Thursday to attend a Navy retirement ceremony for her husband, former astronaut Mark Kelly.

The visit marks the Arizona congresswoman's second trip to the nation's capital since she was shot in the head last January while meeting with constituents in Tucson. About 30 people, including Democratic leader Nancy Pelosi, greeted her and Kelly with a standing ovation as they entered the Secretary of War suite at the Eisenhower Executive Building next to the White House. Giffords walked slowly and with a noticeable limp, wearing running shoes with her suit, but she looked overjoyed to see some of her fellow lawmakers again.

Vice President Joe Biden emceed the ceremony, which included awarding Kelly two of the military's highest awards. Biden had a little trouble pinning the Legion of Merit on Kelly and blamed it on the dim lighting, but Giffords stepped up and had no trouble whatsoever pinning the Distinguished Flying Cross on her husband.

"Gabby did it better than I did," Biden said as the audience laughed and applauded.

Biden made note of Giffords appearance and her near-constant smile, telling her, "You look good, Gabby."

"You've been an inspiration, an inspiration to thousands of people who suffer from traumatic head injuries," Biden said. "... People look at you and say, `I can make it. I can do this.'"

As the ceremony ended, reporters were quickly escorted from the room so there was no chance to ask Giffords questions or for her to make any statements. She did not have extended conversations with colleagues at the beginning of the reception, but she turned to them and waved or blew them kisses when they were introduced. She also wore a heavy brace on her right hand.

Aides said Giffords planned to conduct no congressional business and would return to Houston shortly after the ceremony, where she undergoes rehabilitation therapy.

Giffords has made few public appearances since the shooting. She has not yet made a decision about her political future, but colleagues are raising campaign money on her behalf in case she decides she does want to continue serving in Congress.

Kelly paid tribute to his family and his wife in his retirement speech, telling Giffords, "You make me jealous with your true grit and determination."

Kelly became a NASA astronaut in 1996 and made four trips into space aboard the space shuttle. He commanded three of those missions.

NASA Administrator Charles Bolden Jr., said it was unusual for the vice president to oversee a Navy captain's retirement ceremony, but he said it was appropriate in Kelly's case given his work at NASA and Giffords' service in Congress. Bolden said he was particularly grateful that Kelly agreed to lead the space shuttle Endeavour's final mission in May.

"That, in my estimation, was a courageous move on both their parts considering what she was going through and how necessary he was for her," Bolden said. "But he managed to balance both his professional life and his personal life in helping her through rehabilitation while still helping his crew, which was counting on him for leadership."

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Somalis slowly return to ruined homes in capital (AP)

MOGADISHU, Somalia – Abdinur Isse stepped gingerly over the bat droppings, pushed aside the thorn bushes and walked into his roofless, burned-out home.

"We are starting from zero," the 51-year-old Isse said, staring at the smashed concrete, cinder blocks, corrugated iron and other rubble in the long-abandoned dwelling where his family once lived.

"This used to be my room. Now only bats live here," he said.

He's one of thousands of Somalis flooding into Mogadishu after Islamist rebels pulled out of the capital last month.

About 6,200 people arrived in Mogadishu in August, the U.N. refugee agency said, reversing a five-year-trend of families fleeing the fighting.

Some of those are families from the famine-stricken interior of the country, drawn to the international aid available in the capital.

But many are former residents, cautiously returning to see what they can rebuild from the ruins of their lives now that fighting in Mogadishu has mostly died down.

Two decades of war have gutted most of the city, including Isse's once-beautiful villa. Walls etched with starburst holes from exploding grenades are crumbling on streets overgrown with thorn bushes.

"My home used to be beautiful," Isse said sadly. "Now, it's a desert."

For months, Isse's Bondere neighborhood was bisected by a front line between the Islamic insurgents of the al-Shabab militia and troops from the African Union supporting the weak, U.N.-backed government. The al-Qaida linked rebels forbade anyone to cut the bushes, which offered perfect cover for launching hit and run attacks.

The ground is scarred with hastily dug trenches and tunnels to allow fighters to move unseen.

Now residents are washing off old bloodstains, sweeping out debris and rediscovering dust-covered toys.

Among those returning is Abdirahman Barre, whose two-room home made from corrugated iron sheets was demolished by a mortar. He is camping out next to the twisted wreckage in a dome of cloth scraps stretched over twigs.

"I have no money to rebuild it. We ask people to help us to rebuild our homes," he said as he greeted other returning neighbors, their donkey carts piled high with belongings.

Many have not been home for years, living in makeshift shelters by the side of the road in Afgoye or Elasha, two massive settlements for the displaced on the outskirts of Mogadishu. Around 409,000 people live in Afgoye alone.

"There's no water, electricity, or markets here. It gets extremely dark at night and people's movement stop," Barre said.

The U.N. and other international agencies have had a plan in place for more than two years to help Somalis returning to Mogadishu, but only if there are sufficient numbers. The plan calls for giving out building materials, iron sheeting and other aid if more than 200,000 people come back.

So far, the numbers are too low to implement the plan, the U.N. said, so Somalis are having to make do for themselves. Some get piecemeal help by camping among the families fleeing the drought, war and famine, said Andy Needham, a spokesman for the U.N. refugee agency.

"I want the district to return to normalcy again, and it truly will be if everyone works on his home," said Mohamed Shido, 39, who returned to his abandoned neighborhood of Sinay to help clean up. A neighbor said they need help to fill in potholes and clear large debris from the streets.

"It needs a lot of rebuilding and work that cannot be completed by residents alone," said Sabriye Muhummed, a retired former civil aviation officer. "You see everyone makes only his home, so who will construct and clear the streets, police stations and all other difficult tasks? Only a government's resources can fill the gaps."

A Somali government official did not return messages seeking comment on rebuilding plans. On Tuesday, the government signed a promise to improve governance and services in return for international funding. But for the past few years, very little has been done, even though the government received tens of millions of dollars in donations.

Even if they must clean up for themselves for now, residents say, they want soldiers to guard abandoned police posts to protect them from marauders by night and militants by day.

The Islamists withdrew from their bases in Mogadishu last month, with many leaving in convoys of vehicles. The retreat followed months of fighting in which the better-armed African Union forces steadily pushed them back from most of the city.

Some of the al-Shabab insurgents, however, just hid their weapons and melted back into the city. They have carried out a gruesome campaign of beheadings in recent weeks against civilians. The reason for the killings is unclear.

"Al-Shabab does not deserve to be in control of our village. We expect the government to live up to our expectations and provide security to prevent al-Shabab's return," said Fadumo Addow, a mother of two who returned to the capital's Wardhigley district this week.

A small snake crawled away as Addow lifted a rusted cooking pot. Cockroaches scuttled when she sat on a bed covered in cobwebs.

But she was not deterred — not by these unexpected guests in her home, not by the threat of future attacks, and not by the lack of help.

"My return to my village is a dream a long time coming," she said. "It finally came true today."

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Associated Press writer Katharine Houreld in Nairobi, Kenya, contributed to this report.

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Soros to return outsiders' hedge fund money (Reuters)

BOSTON (Reuters) – Billionaire investor George Soros, whose stock-picking career has spanned nearly four decades, said he will manage money only for himself and his family as new regulations threaten to crimp the hedge fund industry he made famous.

The octogenarian fund manager, known as much for earning $1 billion on a nervy currency bet as for giving away millions to support liberal causes, will return roughly $1 billion to outside investors most likely by the end of the year and turn Soros Fund Management into a family office. The sum represents only a small portion of the $25 billion he oversees.

Keith Anderson, who has been Soros' chief investment officer since 2008, will leave the firm.

Since launching the Quantum Fund nearly 40 years ago, Soros, who emigrated to the United States from Hungary, created one of most envied records in the industry, returning about 20 percent a year. But recently volatile market conditions have taken their toll on the fund as it lost 6 percent in the first half of 2011 and gained only 2.5 percent last year.

In a letter to investors, Soros' two sons, the fund's deputy chairmen, cited impending industry regulation as a reason for returning the money now.

Bloomberg first reported the news.

EXEMPTIONS NO MORE

Under the new Dodd-Frank Act, hedge funds will be forced to register with financial regulators, giving the Securities and Exchange Commission fresh insight into exactly how these generally secretive portfolios make money. But family offices are treated more leniently under the new regulations.

Ever since their father reorganized the Quantum fund in 2000 after heavy losses, the firm has effectively been operating as a family office, relying on various exemptions to avoid registration, the Soros brothers wrote.

Now that many loopholes have been closed, it made more sense to return outsiders' money instead of going through the expensive and time consuming process of registration, people familiar with Soros' thinking said.

"An unfortunate consequence of these new circumstances is that we will no longer be able to manage assets for anyone other than a family client as defined under the regulations," Jonathan and Robert Soros said.

Soros joins a growing list of fund managers who have recently revamped their businesses in the face of fresh regulation. Stanley Druckenmiller, Soros' long-time deputy who helped engineer the firm's winning bet against the British pound in 1992, returned money as did Chris Shumway, who was mentored by another industry great, Julian Robertson. Earlier this year Carl Icahn did the same.

For some outsiders the trend is raising some red flags.

"If the top money managers are closing shop because of overly onerous regulations, then this will ultimately be to the detriment of our institutional investors," said Jim Liew, who teaches finance at NYU's Stern School of Business. "In this environment, we actually need more hedge fund activity: hiring people, raising capital, allocating money, and ultimately stimulating our economy," he added.

MORE BARK THAN BITE

Soros' decision to return money sounds dramatic but the move is expected to be more symbolic than disruptive. The firm is not expected to shrink in size from its roughly 100 employees and George Soros is expected to remain as active in managing money as he always has been.

Soros, and Anderson, recently unwound a huge bet on gold, selling off almost $800 million of exchange-traded funds that hold gold during the first quarter, according to a recent SEC filing. Soros also slashed stakes in gold mining stocks like Kinross Gold and Novagold Holdings.

Indeed even Carl Icahn, who returned outsiders' money, has not retreated from the public stage and recently made a prominent play for bleach maker Clorox. And Julian Robertson, who long mentored some of the industry's next generation of stars, is now letting outsiders invest along side him again.

George Soros' particular focus on philanthropy may have played a hand in his decision to manage only his own money as his support for liberal causes and candidates have increasingly made him into a lightning rod for conservatives.

Last year, Soros told Reuters "I will effectively give away half my income as I earn it and the other half I will give away on my death."

Outsiders interpret this to mean he wants to make more and now it may be easier to act on his own. "The trades that people will have to conduct in the future in order to make money may not be very politically correct -- you may have to short the dollar and do other things that are considered unpatriotic-- and making those bets may be easier without having limited partners calling up to complain," said Charles Gradante, co-founder of Hennessee Group which invests with hedge funds but has no money with Soros right now.

(Additional reporting by Aaron Pressman in Boston and Michelle Nichols in New York, editing by Gerald E. McCormick, Dave Zimmerman)

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Rapper Ja Rule sentenced in tax return case (AP)

NEWARK, N.J. – Rapper and actor Ja Rule was sentenced Monday to more than two years in federal prison for failing to file income tax returns, and said a combination of youthful inexperience, bad advice and an inability to manage fame and fortune lead to his financial troubles.

"I in no way attempted to deceive the government or do anything illegal," he said, minutes before being sentenced in a New Jersey federal court. "I was a young man who made a lot of money — I'm getting a little choked up — I didn't know how to deal with these finances, and I didn't have people to guide me, so I made mistakes."

The multiplatinum-selling artist, whose real name is Jeffrey Atkins, admitted in March that he failed to pay taxes on more than $3 million that he earned between 2004 and 2006 while living in Saddle River. Although he pleaded guilty to three counts of unfiled taxes, he admitted he hadn't filed for five years, according to U.S. Attorney Paul Fishman.

Ja Rule was sentenced in New York City last month to up to two years in prison after he pleaded guilty to attempted criminal weapon possession. The case stemmed from a gun found in his car in 2007. Police said they stopped Ja Rule's $250,000-plus Maybach sports car for speeding and found a loaded .40-caliber semiautomatic gun in a rear door. The gun wasn't registered. He was charged under a New York law that generally bars people from having firearms outside their homes or workplaces.

In the federal case, U.S. Magistrate Patty Shwartz in Newark ruled that the majority of his 28-month federal sentence could be served at the same time as the New York state prison sentence.

Depending on his release date for his New York sentence — he could serve as little as 18 months in that case by meeting good behavior requirements and other standards — he could serve from four to 12 months of the federal sentence. The federal time will be served at the Oneida Correctional Facility in upstate New York, where he is serving the state sentence.

He has also been ordered to pay $1.1 million in unpaid taxes.

Assistant U.S. Attorney Joseph Mack had asked the judge not to let Ja Rule off with no jail time on the federal charges, saying a message had to be sent.

"The court should impose the same sentence it would impose on someone who is not a celebrity," Mack said.

Now 35, Ja Rule first emerged as a hardcore rapper in the late 1990s but then became known for his collaborations with female pop singers, including Jennifer Lopez and Ashanti. He scored a best rap album Grammy Award nomination in 2002 with "Pain Is Love" and has sold nearly 20 million albums during his career.

He also has appeared in more than a dozen movies, including the 2001 film "The Fast and the Furious" and 2003's "Scary Movie 3."

On Monday, he wore a bright yellow prison jumpsuit and was handcuffed at the wrists. He turned to look at his wife, seated in the courtroom behind him, after the sentence was read. His wife, who was his high school sweetheart, declined to comment after the hearing, saying only that it was a stressful time. The couple have three children and still live in Saddle River.

Ja Rule's attorney, Stacy Richman, said her client was a talented high-school dropout who had not had the business prowess to handle sudden fame. When his business empire began to crumble, he became paralyzed by fear and inaction, she argued. She added that the Queens, N.Y., native never forgot his roots and made it a point to give back to his community after becoming famous.

In asking the judge for leniency, Ja Rule said he wanted to get back to work as soon as possible.

"My business is very `out of sight, out of mind,'" he told the judge. "The longer I'm away, the longer it'll take me to get back to doing what I need to do to actually pay these taxes."

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Follow Samantha Henry at http://www.twitter.com/SamanthaHenry.

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French split on return to politics for DSK (AP)

PARIS – A new poll indicates that French people are divided over whether Dominique Strauss-Kahn should re-enter French politics after the weakening of the sexual assault case against the former International Monetary Fund chief.

Forty-nine percent of those surveyed in the Harris Interactive poll for French newspaper Le Parisien responded 'yes' to the question "Without prejudging his innocence or guilt, do you want DSK to come back to the French political scene one day?"

Forty-five percent said 'no' and six percent didn't answer the question, according to the poll published Sunday in Le Parisien. The agency asked a demographically representative group of 1,000 people 18 years old and older to fill out the July 1-2 online survey. No margin of error was provided.

Left-leaning voters were more favorable to a return to politics by Strauss-Kahn, the man who was once the Socialst party's main contender to face off against President Nicolas Sarkozy in next April's presidential election.

Sixty percent of left-leaning voters said the would want DSK back in French politics someday, according to the poll, and 38 percent said no.

On the more pressing question of whether the Socialists should suspend the presidential primary calendar because of the new developments, respondents were also evenly split. Forty-nine percent of all French and 47 percent of left-leaning voters said 'no.'

Strauss-Kahn's next court date is July 18, while the Socialist party has set a July 13 deadline for candidates to declare whether they will run in the primary, now scheduled for Oct. 9 and Oct. 16.

A close ally of Strauss-Kahn's said former IMF chief "will be an important actor in the campaign if he wants to, whose voice will be listened to."

In an interview in the Journal du Dimanche newspaper Sunday, Socialist party legislator Pierre Moscovici said he has not spoken with Strauss-Kahn since before he was freed from house arrest in New York on Friday. He said it is "premature" to speculate on what role Strauss-Kahn could yet play in French politics.

"When he regains his freedomand he is cleared, all options are open to him," Moscovici said.

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