Daley nephew indicted in '04 death of David Koschman

Chicago Tribune reporter Jason Meisner talks about how a Cook County grand jury indicted former Mayor Richard Daley's nephew on a charge of involuntary manslaughter in the death of David Koschman.









A special Cook County grand jury indicted former Mayor Richard Daley's nephew on a charge of involuntary manslaughter in the death of David Koschman in a drunken confrontation on the city’s Near North Side, the special prosecutor said today.

The grand jury found that Richard J. Vanecko "recklessly performed acts which were likely to cause death or great bodily harm to another" in Koschman’s death in 2004, according to the indictment.







Koschman, 21, had been drinking in the Rush Street nightlife district early on April 25 2004 when he and friends quarreled with a group that included Vanecko. During the altercation, Koschman was knocked to the street, hitting the back of his head. He died 11 days later.

Former U.S. Attorney Dan Webb, appointed special prosecutor in the case last spring, noted that at 6-foot-3 and 230 pounds, Vanecko towered over Koschman, who was 5-foot-5 and 125 pounds. There is no statute of limitations on a charge of involuntary manslaughter.


Koschman’s mother, Nanci Koschman, told a news conference that she planned to visit her son's grave and "I'm going to tell David tomorrow that he can finally have peace."


She said she refused to believe, over the years, that the fight was her son's fault, as detectives had told her. "You have to find the strength to go on," Koschman said. "I wanted his name cleared."


Koschman said she never sought vengeance, but accountability. "I want to thank the grand jury," she said. But she added, "It doesn't bring David back. And that's all I wanted."


Vanecko’s attorneys issued a statement saying they were disappointed by the indictment. According to the lawyers, Koschman’s blood-alcohol content was nearly three times the .08 legal limit for motorists – though he was on foot at the time of the confrontation.

Koschman “was clearly acting in an unprovoked, physically aggressive manner,” Vaneckos’ legal team said. “We are confident that when all the facts are aired in a court of law, the trier of fact will find Mr. Vanecko not guilty.”

Vanecko’s lawyers defended the work of police and prosecutors, saying “these agencies professionally investigate these types of incidents on a daily basis.”

“These decisions were not because of favoritism but because the facts did not warrant felony charges,” the lawyers said.


Vanecko, who currently lives in California, is expected to appear for arraignment at 9:30 a.m. Monday at the Leighton Criminal Court Building at 26th Street and California Avenue. Plans call for him to post $10,000 cash bond and be released pending trial. He faces 2 to 5 years in prison, or probation, if convicted of involuntary manslaughter.


Lawyers for Koschman’s mother sought a special prosecutor last year after an investigative series by the Chicago Sun-Times raised questions about whether police and prosecutors intentionally concealed evidence for political reasons.


In a statement released this afternoon, Webb said the grand jury continues “at a vigorous pace” to look into how authorities handled their investigation of Koschman’s death.


Locke Bowman, an attorney with Northwestern University's MacArthur Justice Center who represents Nanci Koschman, said he was encouraged that the investigation was continuing.

"Why has this taken so long?" he asked, wondering if the the clout of the powerful Daley family was at work. "Clearly, we need to have answers."


Webb said thousands of documents have been reviewed and more than 50 witnesses interviewed so far in the seven-month investigation.


Among the  issues Webb was tasked to sort out were whether clout tainted the original investigation in addition to whether Vanecko, now 38, should be charged criminally in connection with the death.


Judge Michael Toomin took the rare step of appointing Webb as a special prosecutor in April after concluding that Chicago police and county prosecutors mishandled the investigation.


The charges mark a dramatic twist in a case that seemed to fizzle out in 2004 as the investigation went nowhere.

Police initially said that witnesses gave conflicting accounts of what occurred and some claimed Koschman was the aggressor in the confrontation.

Almost two weeks after Koschman died of his injuries, a top prosecutor in the Cook County state’s attorney’s office was called to the Belmont Area headquarters on the day detectives put Vanecko in several lineups, all of which police said ended with witnesses failing to identify him as the assailant.

Vanecko had come to the station with his attorney, Terence Gillespie, who told police his client would not answer questions.

Dan Kirk, chief of staff for current State’s Attorney Anita Alvarez told the Tribune in an interview earlier this year that there was no admissible evidence that could have been used to file charges at the time.


Kirk said police had no positive identification from any of the lineups they conducted, no statements from the main suspect, no statement from the victim and no physical evidence.


jmeisner@tribune.com





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Additional copies of ‘Lincoln’ headed to theaters












LOS ANGELES (AP) — “Lincoln” is marching to more movie theaters.


Disney, which distributed the DreamWorks film, is making additional prints of director Steven Spielberg‘s historical saga starring Daniel Day-Lewis to meet an unexpected demand that has left some moviegoers in Alaska out in the cold.












“To say that we’re encouraged by the results to date or that they’ve exceeded our expectations is an understatement,” said Dave Hollis, head of distribution at the Walt Disney Co. “We’re in the midst of making additional prints to accommodate demand and will have them available to our partners in exhibition by mid-December for what we hope will be a great run through the holiday and awards corridor.”


The film, which opened in wide release Nov. 9 and has earned $ 83.6 million in North America so far, has been unavailable at some smaller venues, such as the Gross Alaska theaters in Juneau.


But the extra prints are coming a little too late to fit the movie into the five-screen Glacier Cinemas theater during the holiday season, said Kenny Solomon-Gross, general manager of the Gross Alaska, which runs two theaters in Juneau and one in Ketchikan, Alaska.


“When we had the room for ‘Lincoln,’ Disney didn’t have a copy for us,” Solomon-Gross said Monday.


His film lineup is pretty booked through the end of the year, and he probably can’t screen “Lincoln” until after the first of the new year. Yes, the excitement over the film will have dimmed, but then the Academy Awards season will be stirring up, he said. That should kick up the buzz.


In the meantime, Solomon-Gross plans to head to Las Vegas this week and catch the film there.


___


Follow AP Entertainment Writer Derrik J. Lang on Twitter at http://www.twitter.com/derrikjlang . Associated Press writer Rachel D’Oro in Anchorage, Alaska, contributed to this report.


___


Online:


http://www.thelincolnmovie.com


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Global Update: GlaxoSmithKline Tops Access to Medicines Index


Sang Tan/Associated Press







GlaxoSmithKline hung on to its perennial top spot in the new Access to Medicines Index released last week, but its competitors are closing in.


Every two years, the index ranks the world’s top 20 pharmaceutical companies based on how readily they get medicines they hold patents on to the world’s poor, how much research they do on tropical diseases, how ethically they conduct clinical trials in poor countries, and similar issues.


Johnson & Johnson shot up to second place, while AstraZeneca fell to 16th from 7th. AstraZeneca has had major management shake-ups. It did not do less, but the industry is improving so rapidly that others outscored it, the report said.


The index was greeted with skepticism by some drugmakers when it was introduced in 2008. But now 19 of the 20 companies have a board member or subcommittee tracking how well they do at what the index measures, said David Sampson, the chief author.


The one exception was a Japanese company. As before, Japanese drugmakers ranked at or near the index’s bottom, and European companies clustered near the top. Generic companies — most of them Indian — that export to poor countries are ranked separately.


Johnson & Johnson moved up because it created an access team, disclosed more and bought Crucell, a vaccine company.


The foundation that creates the index now has enough money to continue for five more years, said its founder, Wim Leereveld, a former pharmaceutical executive.


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Heat is on Groupon's Andrew Mason









In June 2011, Groupon Inc. Chief Executive Andrew Mason took the stage at a conference hosted by influential technology blog AllThingsD.


When co-executive editor Kara Swisher asked him whether an initial public offering was coming soon, he shot her what she later dubbed his "death stare."


The audience laughed and broke into applause.





The tone was decidedly more subdued last week, when Mason found himself at another tech industry confab, fielding questions from Business Insider's Henry Blodget, this time about whether Groupon's directors were going to fire him at their meeting the next day. AllThingsD had reported a day earlier, citing anonymous sources, that Groupon's board of directors was considering replacing Mason with a more experienced CEO to lead the Chicago-based daily deal company's turnaround.


The contrast between those two appearances underscores the swift and dramatic tumble of Mason's standing in tech and business circles within a few years. The young founder and CEO graced the cover of Forbes in 2010 and was named Ernst & Young's National Entrepreneur of the Year in the "emerging" category a year later.


Those accolades are a far cry from the cloud hanging over Mason, 32, and the company he launched four years ago. The leak to AllThingsD appeared to be deliberately timed to embarrass the executive, forcing him to field questions about his own competence at a scheduled appearance. This public hint of internal strife has fueled speculation around Mason's fate even as other public tech companies, such as Facebook and social game-maker Zynga, have also seen their stock prices drop since their IPOs.


Groupon's board met Thursday and took no action on the CEO's job, with company spokesman Paul Taaffe saying the board and management were "working together with their heads down to achieve Groupon's objectives."


Markets, however, seemed unconvinced. Groupon's beleaguered stock closed slightly higher Thursday but dropped 8.7 percent to $4.14 Friday. Shares debuted at $20 in November 2011.


Investors "want experience in leadership," said Raman Chadha, a clinical professor at DePaul University and co-founder of the Junto Institute for Entrepreneurial Leadership, a training program for startup founders. "And as a result, where Andrew's background was cool and sexy — and maybe even bordering on amusing — when Groupon was a pure startup, that's in the mindset of those of us who are observers and supporters … and fellow entrepreneurs. I think in the minds of the investor community and Wall Street, (it's different) because now the company has a lot more to lose. And if it's going to fall, it's going to fall really hard and really far."


For Chadha, Mason's unconventional pedigree as a music major-turned-startup-founder was part of the appealing, media-friendly story of Groupon's origin. The company was launched as recession-weary consumers were eager for deals, and it achieved rapid growth while earning a reputation for antics like decorating a conference room in the style of a fictional, possibly deranged tenant of Groupon's headquarters who had lived there before the startup moved into the offices.


The scrutiny of Groupon was tremendous given the "high-flying" nature of the company, said David Larcker, a corporate governance expert at the Stanford Graduate School of Business.


"You have a founder as CEO," he said. "He's the public face of the company. He has set the culture. All of that stuff."


That culture, driven in large part by Mason, turned from a lovable quirk to a major liability as the company ran into controversy over its poorly received Super Bowl ads in February 2011 and a series of missteps in the run-up to its IPO. Then, within months of its public debut, it disclosed an accounting flaw that forced it to restate financial results.


The larger question surrounding Groupon is the long-term viability of its basic business model. The company has been expanding offerings beyond its core daily deals, which have seen growth rates tail off. It's also dealing with a recession in the key European market as well as continued competition in the U.S.


But the biggest challenge facing Mason now is probably his own performance, or rather the perception that he isn't up to the task of running the global, publicly traded business worth billions that he founded but that now needs a turnaround. The stock is down 80 percent from its IPO price.


"It's an oft-told, oft-expected story that the genius entrepreneur steps aside when he or she succeeds at building a company big enough to need an experienced CEO," said Erik Gordon, a business professor at the University of Michigan.


The example Gordon and others cite is Google, which flourished after its co-founders Larry Page and Sergey Brin made way for a more seasoned executive in Eric Schmidt.


"The Google guys did it, and the results were spectacular," Gordon said.


Chadha said many startups tend to become more corporate in outlook, and less quirky, as they grow, because they bring in experienced executives from large companies that may have difficulty adapting to an entrepreneurial culture or reject it outright as not professional enough.


"I think that's where Google is very different," Chadha said. "(The company) sought out entrepreneurial, startup types — people that became part of their management team." That free-form element of Google's culture comes out in such things as the Google doodles — the offbeat tributes to notable anniversaries or famous people that pop up on the main search page.


Mason has acknowledged areas where Groupon needs to improve and has hired senior executives with experience at more mature tech companies. That hasn't always worked either. Margo Georgiadis, who came from Google as chief operating officer, returned to that company after five months.


Whether there's still room for Mason on the top management team remains to be seen. He was direct in his interview last week with Blodget, offering a minimum of jokes as he focused on discussing the job he and others at Groupon must accomplish.


"I care far more about the success of the business than I care about my role as CEO," he said.


A year ago, when he spoke to author Frank Sennett for his book "Groupon's Biggest Deal Ever," Mason was unapologetic about his management style.


"You only live once, and all I'm doing is being myself," he told Sennett. "I think a normal CEO is trying to appear in some way that's not actually them. That's probably not what they're like."


In the same book, former President and Chief Operating Officer Rob Solomon offered this blunt assessment of his ex-boss: "Andrew at thirty-five and forty is going to hate Andrew at twenty-nine and thirty; I guarantee it."


Melissa Harris and Bloomberg News contributed.


wawong@tribune.com


Twitter @VelocityWong





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Nokia Siemens to sell optical networks unit












FRANKFURT (Reuters) – Mobile telecoms equipment joint venture Nokia Siemens Networks, which is focusing on its core business, is to sell its optical fiber unit to Marlin Equity Partners for an undisclosed sum.


Up to 1,900 employees, mainly in Germany and Portugal, will be transferred to the new company, NSN said on Monday.












The company, owned by Nokia and Siemens, has sold a number of product lines since it last year announced plans to divest non-core assets and cut 17,000 jobs, nearly a quarter of its total workforce.


Nordea Markets analyst Sami Sarkamies said he expected more divestments after the optical unit deal. This disposal was a small surprise, he said, because NSN needed some optical technology – where data is transmitted by pulses of light – for its main mobile broadband business.


The move may hint the company is preparing itself for further consolidation in the sector by cutting overlaps with other players, Sarkamies said.


The telecom equipment market is going through rough times with stiff competition. French Alcatel-Lucent is also cutting costs.


($ 1 = 0.7689 euro)


(Reporting by Harro ten Wold; Editing by Greg Mahlich and Dan Lalor)


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NIU earns Orange Bowl berth vs. Florida State













NIU bowl berth


NIU linebacker Bobby Winkel eyes bigger stakes after the Huskies beat Kent State 34-27 in double overtime Friday to win the 2012 MAC Championship.
(US Presswire Photo / December 2, 2012)





















































Northern Illinois earned a coveted BCS bowl bid and will play Florida State in the Orange Bowl.

The Huskies were ranking No. 15 in the BCS.

Representatives from both the Orange Bowl and Sugar Bowl were on hand to watch NIU defeat Kent State 44-37 in double overtime in the Mid-American Conference championship game Friday night in Detroit.

With a 12-1 record and a second straight MAC title in hand, NIU moved up to No. 15 in the BCS poll to qualify for the bowl bid, according to Pete Thamel of SI.com, who attributed the report to an inside source.

Expected to be a heavy underdog, the Huskies have a marquee dual-threat quarterback in junior Jordan Lynch, who has set several NCAA records in his first season as a starter.

Dave Doeren accepted the head-coaching position at North Carolina State on Saturday, leaving NIU without a coach at this point. Athletic director Jeff Compher told the Tribune on Saturday that he would move quickly to fill Doeren’s role from a pool of attractive candidates inside and outside of the program.

fmitchell@tribune.com

Twitter@kicker34




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Young down by boardwalk for benefit show












NEW YORK (AP) — Neil Young said Sunday that he couldn’t see performing in the area devastated by Superstorm Sandy without doing something to help people who were affected by it.


Young and his longtime backing band, Crazy Horse, will hold a benefit concert for the American Red Cross‘ storm relief effort Thursday at the Borgata Hotel Casino & Spa in Atlantic City. The New Jersey coastline areas were hit hard by the storm in late October.












People in the New York area who suffered damage in the storm have been supporting him for 40 years, he said.


“I couldn’t see coming back here and just playing and have it be business as usual,” he said. Young is touring in the area, with concerts scheduled for Monday in Brooklyn and Tuesday in Bridgeport, Conn.


Minimum ticket prices for the standing-room show in Atlantic City will be $ 75 and $ 150, although Young notes there’s no maximum. He hopes to raise several hundred thousand dollars for the Red Cross.


Young said he was invited to join the Dec. 12 benefit at New York’s Madison Square Garden that will feature Bruce Springsteen, Paul McCartney, the Who, Kanye West and others, but had other obligations. Besides, there’s enough star power there, he said.


“It wasn’t going to make much difference whether I was there or not, so I decided to go someplace where I could make a difference,” he said.


Young performed at a televised benefit in 2001 following the Sept. 11 terrorist attacks, memorably covering John Lennon’s “Imagine.”


Fans can expect a two-hour plus rock show on Thursday with opening band Everest. No special guests are planned, although Young issued an invitation to “anyone who wants to come in and play with us that we know and we know can play.”


It’s hard to resist wondering whether Young’s epic “Like a Hurricane” will make it onto the set list, given the occasion.


“Anything’s possible,” Young said. “We have the equipment.”


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Unboxed: Stand-Up Desks Gaining Favor in the Workplace





THE health studies that conclude that people should sit less, and get up and move around more, have always struck me as fitting into the “well, duh” category.




But a closer look at the accumulating research on sitting reveals something more intriguing, and disturbing: the health hazards of sitting for long stretches are significant even for people who are quite active when they’re not sitting down. That point was reiterated recently in two studies, published in The British Journal of Sports Medicine and in Diabetologia, a journal of the European Association for the Study of Diabetes.


Suppose you stick to a five-times-a-week gym regimen, as I do, and have put in a lifetime of hard cardio exercise, and have a resting heart rate that’s a significant fraction below the norm. That doesn’t inoculate you, apparently, from the perils of sitting.


The research comes more from observing the health results of people’s behavior than from discovering the biological and genetic triggers that may be associated with extended sitting. Still, scientists have determined that after an hour or more of sitting, the production of enzymes that burn fat in the body declines by as much as 90 percent. Extended sitting, they add, slows the body’s metabolism of glucose and lowers the levels of good (HDL) cholesterol in the blood. Those are risk factors toward developing heart disease and Type 2 diabetes.


“The science is still evolving, but we believe that sitting is harmful in itself,” says Dr. Toni Yancey, a professor of health services at the University of California, Los Angeles.


Yet many of us still spend long hours each day sitting in front of a computer.


The good news is that when creative capitalism is working as it should, problems open the door to opportunity. New knowledge spreads, attitudes shift, consumer demand emerges and companies and entrepreneurs develop new products. That process is under way, addressing what might be called the sitting crisis. The results have been workstations that allow modern information workers to stand, even walk, while toiling at a keyboard.


Dr. Yancey goes further. She has a treadmill desk in the office and works on her recumbent bike at home.


If there is a movement toward ergonomic diversity and upright work in the information age, it will also be a return to the past. Today, the diligent worker tends to be defined as a person who puts in long hours crouched in front of a screen. But in the 19th and early 20th centuries, office workers, like clerks, accountants and managers, mostly stood. Sitting was slacking. And if you stand at work today, you join a distinguished lineage — Leonardo da Vinci, Ben Franklin, Winston Churchill, Vladimir Nabokov and, according to a recent profile in The New York Times, Philip Roth.


DR. JAMES A. LEVINE of the Mayo Clinic is a leading researcher in the field of inactivity studies. When he began his research 15 years ago, he says, it was seen as a novelty.


“But it’s totally mainstream now,” he says. “There’s been an explosion of research in this area, because the health care cost implications are so enormous.”


Steelcase, the big maker of office furniture, has seen a similar trend in the emerging marketplace for adjustable workstations, which allow workers to sit or stand during the day, and for workstations with a treadmill underneath for walking. (Its treadmill model was inspired by Dr. Levine, who built his own and shared his research with Steelcase.)


The company offered its first models of height-adjustable desks in 2004. In the last five years, sales of its lines of adjustable desks and the treadmill desk have surged fivefold, to more than $40 million. Its models for stand-up work range from about $1,600 to more than $4,000 for a desk that includes an actual treadmill. Corporate customers include Chevron, Intel, Allstate, Boeing, Apple and Google.


“It started out very small, but it’s not a niche market anymore,” says Allan Smith, vice president for product marketing at Steelcase.


The Steelcase offerings are the Mercedes-Benzes and Cadillacs of upright workstations, but there are plenty of Chevys as well, especially from small, entrepreneurial companies.


In 2009, Daniel Sharkey was laid off as a plant manager of a tool-and-die factory, after nearly 30 years with the company. A garage tinkerer, Mr. Sharkey had designed his own adjustable desk for standing. On a whim, he called it the kangaroo desk, because “it holds things, and goes up and down.” He says that when he lost his job, his wife, Kathy, told him, “People think that kangaroo thing is pretty neat.”


Today, Mr. Sharkey’s company, Ergo Desktop, employs 16 people at its 8,000-square-foot assembly factory in Celina, Ohio. Sales of its several models, priced from $260 to $600, have quadrupled in the last year, and it now ships tens of thousands of workstations a year.


Steve Bordley of Scottsdale, Ariz., also designed a solution for himself that became a full-time business. After a leg injury left him unable to run, he gained weight. So he fixed up a desktop that could be mounted on a treadmill he already owned. He walked slowly on the treadmill while making phone calls and working on a computer. In six weeks, Mr. Bordley says, he lost 25 pounds and his nagging back pain vanished.


He quit the commercial real estate business and founded TrekDesk in 2007. He began shipping his desk the next year. (The treadmill must be supplied by the user.) Sales have grown tenfold from 2008, with several thousand of the desks, priced at $479, now sold annually.


“It’s gone from being treated as a laughingstock to a product that many people find genuinely interesting,” Mr. Bordley says.


There is also a growing collection of do-it-yourself solutions for stand-up work. Many are posted on Web sites like howtogeek.com, and freely shared like recipes. For example, Colin Nederkoorn, chief executive of an e-mail marketing start-up, Customer.io, has posted one such design on his blog. Such setups can cost as little as $30 or even less, if cobbled together with available materials.


UPRIGHT workstations were hailed recently by no less a trend spotter of modern work habits and gadgetry than Wired magazine. In its October issue, it chose “Get a Standing Desk” as one of its “18 Data-Driven Ways to Be Happier, Healthier and Even a Little Smarter.”


The magazine has kept tabs on the evolving standing-desk research and marketplace, and several staff members have become converts themselves in the last few months.


“And we’re all universally happy about it,” Thomas Goetz, Wired’s executive editor, wrote in an e-mail — sent from his new standing desk.


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Designer made herself into a manufacturer

Shoemaker Annie Mohaupt nearly closed down a year ago after her move to make sandals in China proved a bust. In the year that followed, she started her own factory in Chicago, producing and selling her luxury wooden shoes. (Posted Dec. 1st, 2012)









Shoemaker Annie Mohaupt nearly closed down a year ago after her move to make sandals in China proved a bust. The sandals could easily be pulled apart.

She looked into what it would cost to make her sandals in another country but returned production to Chicago. The decision, she said, allows her to tap into growing demand for U.S.-made products and to utilize manufacturing technology that makes her company, Mohop Inc., a global competitor.






"I have a factory," Mohaupt said, her statement reflecting her evolution from thinking of herself solely as a designer. As a manufacturer she understands she has control over the quality of her products — a key to sales and growth. "I'm happy but it's also intimidating. There is a lot to manage and wrap my head around."

Mohaupt's tale is illustrative of what manufacturing experts and politicians have been saying for quite some time: American manufacturers can be successful and create jobs by using the latest technology in producing and developing products.

So far this year, Mohaupt has sold about 1,500 pairs of sandals for about $158,000, she said. Mohaupt credits Facebook fans and word-of-mouth recommendations for a 500 percent increase in sales this fall over a year ago, and she expects to sell about 5,000 pairs of sandals in 2013. When she reaches annual sales of 10,000 pairs, Mohaupt said she'll need to invest in more equipment, like a new wood-cutting machine.

"I want for her to be making her shoes in the U.S.," said Greg Kaleel, owner of American Male & Co. a family-owned retail shop in Oswego, adding that his customers will pay more for shoes made here. "That's how important the 'made in America' is."

On a recent evening, the sweet smell of burned walnut filled Mohaupt's basement shop in a three-story building in Chicago's River West neighborhood. The smell emanated from a computerized machine about the size of a pingpong table cutting walnut blocks into triangles with concave curves and arches. Those curves support the heel and arch of a woman's foot and create a sleek, sophisticated look.

An architect by training, Mohaupt, 37, feeds her three-dimensional designs into a program that converts it into letters and numbers and tells the machine where to cut. That was the easy part for her to learn. To operate the machine, Mohaupt relied on a tutorial from the machine-maker and learned the rest via the Internet.

The soft-spoken woman employs three people, including an office manager and a young designer. If sandals sell as planned, she would hire four to six temporary workers in the spring. That's when sales typically ramp up after the winter lull. Mohaupt wants to expand her product line to lessen her dependence on sandal sales. One idea is a moccasin she can sell in the cold months.

Mohaupt has come a long way since 2005, when she cut and glued layers of plywood by hand to make her sandals. Her early versions featured a cylindrical wooden heel and elastic loops on each side of the sole that acted as guides for ties or ribbons that customers could change at will — her signature design.

She sold her first sandals for $70 at a craft fair and appeared to be off and running. The bliss of her success crumbled the following morning when customers complained that the shoes easily came apart. The heels broke off and the loops snapped. In effect, the stumble marked the beginning of her apprenticeship as a manufacturer.

Mohaupt spent the next year quizzing seasoned shoemakers and shoe repairers about how she could improve the quality of her shoes. Ultimately, she decided that her sandals should be able to withstand 100 miles of use. To test her designs, she wore her sandals while taking her dog on five-mile treks.

"I lost some weight," she said. She also test-marketed the evolving sandals by mailing samples to her first customers. Some got up to five pairs as Mohaupt developed — and later patented — a system to keep the elastic loops in place. One problem licked, she then focused on the labor involved.

Cutting the plywood by hand was grueling work in its own right. And then she had to glue together the layers. "I would end up covered in glue," she said.

So Mohaupt began experimenting with wooden blocks, which she'd sculpt with a saw into wedges. That eliminated having to glue together layers of plywood but still was physically draining.

That's when she made a decision that would forever change her business. In 2009 she bought on credit a $70,000 computer-driven machine that could read her 3-D designs and cut heels in minutes, saving hours of labor. The machine also allowed Mohaupt to experiment with new designs. For example, she could for the first time produce curved heel bases and make shoes with added arch support.

Demand grew steadily, which should have been a good problem. But even with the machine she couldn't keep pace with orders. Mohaupt tried training people to make the sandals but found that she couldn't train them and make shoes at the same time.

That's when she first considered outsourcing production. She tested a Canadian shoemaker but severed the relationship after it sent her a shipment of poorly made shoes. Mohaupt also was unsuccessful in lining up production in Argentina.

Then, suddenly, a competitor emerged that jolted her into making a decision that ultimately would nearly bring down her company. The competitor was selling sandals almost identical to hers and nudging her sandals out of local shops she had supplied for years. Its prices also were lower because it was producing its sandals in China. She faced being driven out of business, she said.

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Verizon may soon launch Samsung Galaxy Camera with 4G LTE












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