'Warrior monk' at center of growing scandal

WASHINGTON (Reuters) - Marine Corps General John Allen, the soberly formal, spit-and-polish head of U.S. and international forces in Afghanistan, is not a military leader whose image immediately conjures up the word "flirtatious."

The four-star general, who succeeded General David Petraeus last year as head of the International Security Assistance Force, is known for his ability to work with tribal sheikhs, a skill that helped him turn the tide against al Qaeda in Anbar Province in Iraq five years ago and has served him well in Afghanistan.

So the news that Allen, a 36-year veteran of the Marine Corps, had been snared in the same investigation that prompted the resignation of Petraeus as CIA director last week was greeted with surprise at the Pentagon and elsewhere in Washington.

John Ullyot, who served under Allen at Camp Lejeune in North Carolina in 1993, said he was all about "setting the example" for those under him and it was "hard for anyone who ever served under Allen" to believe he had been pulled into the probe.

Allen, who is married and has two daughters, "was known as a kind of warrior monk," said Ullyot, who was a spokesman for former U.S. Senator John Warner, a Republican who chaired the Senate Armed Services Committee.

Allen's connection to the probe that snared Petraeus was revealed early on Tuesday when Defense Secretary Leon Panetta announced he was putting Allen's nomination as head of U.S. European Command on hold pending an investigation.

A senior U.S. defense official said Panetta had asked the Defense Department's inspector general to investigate what the Pentagon called "inappropriate communication" between Allen and Jill Kelley, a Tampa, Florida socialite who is involved in volunteer causes that support the military.

Kelley is the woman who told the FBI she had received anonymous harassing emails about Petraeus. The FBI investigation into the emails uncovered an extramarital affair between Petraeus and his biographer, Paula Broadwell, who was found to be the source of the emails to Kelley, officials have said.

The FBI investigation also uncovered 20,000 to 30,000 pages of emails between or copied to Allen and Kelley. While defense officials were unable to say exactly how many emails there were between the two, the volume in pages raised concerns, they said.

A senior defense official, speaking on condition of anonymity, said the emails were "flirtatious" in nature, but did not deal with security or military business. The official said he had not seen the emails and could not say whether they were merely friendly or sexually explicit.

The investigation came just two days before Allen, the first Marine to serve as Commandant of Midshipmen at the U.S. Naval Academy, was to testify at a confirmation hearing naming him to replace Admiral James Stavridis as head of the U.S. European Command and Supreme Allied Commander Europe.

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Allen and Petraeus have long known one another and served together. Allen was Petraeus' deputy at U.S. Central Command, based in Tampa.

Petraeus personally recommended Allen for the ISAF command. During Allen's confirmation hearing for the job, Senator John McCain told Allen he could "think of no higher compliment to pay a military officer" than to have the kind of support Petraeus had given him.

Allen has served as the head of ISAF since July 2011, managing the drawdown of U.S. forces following a surge that helped push Taliban insurgents out of major cities across the country.

His time in Afghanistan also has been marked by a spate of incidents that have enraged Afghans. They include video images of troops urinating on Taliban corpses and the burning of Korans and religious texts taken from a prison library. There also has been a surge in attacks on international forces by their Afghan partners.

Allen has handled the incidents with sensitivity, even as tensions have increased, his supporters say.

"I think General Allen has done a good job under very difficult circumstances in Afghanistan," said Senator Susan Collins, a member of the Armed Services Committee.

McCain, the top Republican on the Armed Services Committee, said he was surprised by the probe of Allen's emails and urged people to withhold judgment until the inspector general had finished his investigation.

"I have great respect and appreciation for the work that General Allen has done," he said. "If we fail in Afghanistan, which we are, it's because of decisions that were made by the president, not by General Allen."

"General Allen has said that he is not guilty of any improper behavior," McCain added. "He deserves to have us withhold judgment until the investigation is completed."

Allen, a 1976 Naval Academy graduate, served from 2008 to 2011 as deputy commander of U.S. Central Command, which oversees U.S. military dealings with countries from Egypt to Kazakhstan, including Afghanistan and Pakistan.

He was a deputy commanding general of the 2nd Marine Expeditionary Force in Iraq from 2006 to 2008.

(Additional reporting by Susan Cornwell. Editing by Warren Strobel and Christopher Wilson)

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Bayer: 5 key drugs to have combined peak sales of 5.5 billion euro

LEVERKUSEN, Germany (Reuters) – Bayer said its five most promising new drugs have an annual peak sales potential of more than 5.5 billion euros ($ 7 billion).

The sales forecast comprises anti-clotting pill Xarelto, ophthalmic drug Eylea, also calle VEGF Trap-Eye, anti-cancer products Alpharadin and Stivarga, as well as lung treatment riociguat.

Last year, Bayer said four of the drugs, excluding riociguat, would have a peak sales potential of more than 5 billion euros.

(Reporting by Frank Siebelt; Writing by Ludwig Burger)

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Beating tax cheats key to Italy’s recovery plan

ROME (AP) — Good plumbers may be worth their weight in gold, but when one was spotted zipping around in a bright red Ferrari, Italian tax police were fast on his trail.

Stamping out entrenched tax evasion is crucial to Premier Mario Monti‘s quest to keep Italy from succumbing to the European debt crisis, and it is critical to fellow eurozone members in more dire straits, such as Greece and Spain — which are also notorious for making cheating the taxman a way of life.

Indeed, Greece’s international rescue creditors have been pressing Greece for two years to reform its ailing tax system, citing poor collection as a key factor keeping the country mired in crisis. In Spain, where tax fraud is rampant, as much as €90 billion ($ 150 billion) is lost each year to tax fraud — the equivalent of the country’s national debt, according to Spain’s main tax inspectors union.

To succeed in Italy, authorities will have to catch the legions of self-employed and small business owners who brazenly lie about their earnings, like the plumber in the eastern town of Pescara, who socked away undeclared income in 30 bank accounts, or a successful pastry shop owner in Calabria, who on his tax return claimed he was earning next to crumbs.

And those are the less sophisticated schemers.

Tax police officials say that wealthy Italians, their companies and foreigners who make their money in Italy are increasingly trying to avoid taxes by using such strategies as falsely declaring that their base of operations or residence is abroad.

Another daunting challenge is the so-called “submerged” economy, a term embracing Italians who declare only a fraction or nothing at all of their earnings — and dentists, lawyers, doctors and other big-earning professionals are frequently among the worst offenders.

Tax evasion of all types in Italy totals about euros 240 billion ($ 300 billion), or 15 percent of the country’s gross domestic product of €1.6 trillion ($ 2 trillion), tax police estimate. Winning the war on tax cheats could therefore more than wipe out the country’s budget deficit, which is expected to increase to euros 42 billion ($ 53 billion), or 2.6 percent of GDP this year. That would start knocking away at the nation’s colossal public debt of €2 trillion ($ 2.5 trillion), or 125 percent of GDP.

But “big international frauds are up,” lamented Lt. Col. Gianluca Campana, in charge of the income tax unit revenue protection office at the Guardia di Finanza, Italy’s financial police corps which reports to the Economy Ministry.

The entrenched practice by many cafes, eateries, hair dressers and similar small business of neglecting to give customers mandatory cash register receipts commonly grabs the attention in crackdowns on tax evasion in Italy.

But, cautioned Campana, “one false (big business) invoice can equal no cash register receipts for coffees for two months.”

Over all of 2011, the total of non-declared income discovered by tax police amounted to some €50 billion ($ 65 billion), of which some 20 percent was due to international tax evasion, he said. By comparison, in the first nine months of this year, tax police discovered some €40 billion in undeclared income, with 30 percent of that blamed on international tax evasion, Campana said.

With the economic crisis shrinking bottom lines, and Italy increasingly on the hunt for big-time evasion, especially by big businesses, “there is a tendency to move capital abroad, using maneuvers apparently legal but which really are not,” Campana said. A classic technique consists of declaring one’s formal residence abroad in tax havens like Monte Carlo. Also common are companies that clearly have their business base in Italy but claim it is abroad in countries with far lower tax brackets.

Campana is armed with three degrees, including a masters in tax law from Milan’s Bocconi University, the prestigious economics institute formerly headed by Monti. He brings skills to this specialized police corps that are as finely tuned as sharp-shooting.

“We are going after the big cases (of evasion) in order to rake in more money,” Campana said.

The Ferrari-driving plumber hid some €2 million ($ 2.6 million) of his income over several years by giving his customers invoices — for jobs ranging from fixing leaks to installing new bathrooms — for the actual cost of his work, but kept a second, false registry of much lower figures for tax purposes, said Pescara tax police Col. Mauro Odorisio.

Armed with a 2008 law, authorities confiscated assets belonging to the plumber equivalent to the approximately €1 million ($ 1.3 million) they contend he owed in taxes, Odorisio said.

With Ferraris in red or yellow, and snazzy Porsches parked inside, Guardia di Finanza garages practically resemble luxury car dealerships.

The cars get sold to help recoup unpaid taxes and interest.

Overall, tax revenues in Italy were up by 4.1 percent, says the Economy Ministry, when comparing figures from the first eight months of 2012 with the same period in 2011, but much of that was due to new taxes, and not necessarily a revolution in citizens’ consciences about tax obligations.

Monti’s recipe relies heavily on taxes that are nearly impossible to avoid, such as sales tax. He also revived a property tax that his populist predecessor, Premier Silvio Berlusconi, had abolished in a promise to voters.

The ministry’s report last month noted that the property tax figured prominently in the “tendency toward growth” in tax revenues. But sales tax revenue dropped slightly despite higher sales tax rates, indicating that consumers were feeling the pinch of the stagnant economy.

The heavier fiscal burden seems to have driven some honest citizens to rebel against the engrained culture of tax evasion.

The number of phone calls from the public to the tax police’s hotline to report stores, restaurants and other businesses that didn’t give customers sales receipts has almost doubled in the first nine months of this year, compared with the same period in 2011.

It’s apparently dawning on Italians that shirking taxes in the end only costs them, in terms of ever-higher levies and cutbacks in public services.

Citizens now increasingly understand that “the lack of revenue over time caused by tax evaders forced the government to stiffen the tax burden on categories where you can’t evade taxes,” Campana said, referring to workers whose taxes are deducted from paychecks. Another area where evasion is close to impossible is real estate ownership.

Odorisio noted the crackdown included extending the statute of limitations on tax evasion from six to eight years and establishing prison as a penalty for big-time evasion.

Other weapons include a measure promoted by the Monti government that limits cash payments to no more than €1,000. Paying by credit card or personal check is a relatively new habit for Italians, who are used to carrying wads of cash in their pockets, even for big-ticket items like home renovations or vacations.

Past governments in Italy sometimes resorted to tax amnesties to try to boost revenues. But critics, contending some Italians counted on such a possibility, described that strategy as only perpetuating the tax cheat culture.

Spain hasn’t had much success with its own tax amnesty introduced by the conservative government in March. That measure, expiring soon, allows undeclared assets or those hidden in tax havens to be repatriated by paying a 10 percent tax without criminal penalty. The amnesty is estimated to recuperate far less than the expected €2.5 billion ($ 3.25 billion).

Greece saw demands for tax system reform from international rescue creditors added on to conditions for future rescue loan payments, as Greek authorities acknowledged that a high-profile campaign to crack down on major tax cheats has produced disappointing results.

The cash-strapped government over the last 10 months recovered just €19 million ($ 25 million) of the €13 billion ($ 17 billion) of arrears on the list. A prominent Greek magazine publisher recently tapped anger over rich tax evaders by publishing a list of people allegedly holding Swiss bank accounts. He was acquitted this month of breaching privacy laws.

Meanwhile, Italian tax police are chasing after cheats who have shown some of the most chutzpah about not paying their fair share of taxes, like the Padua woman who advertised on the Internet that she had a couple of “cash-only” bed and breakfast rooms to let.

Tax police discovered the lodgings are part of an apartment in public housing she was given after falsely declaring she was indigent on her annual tax forms.

____

AP reporters Derek Gatopoulos in Athens and Ciaran Giles in Madrid contributed to this report.

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Liza Minnelli to guest star on TV musical drama “Smash”

LOS ANGELES (Reuters) – Liza Minnelli will guest star on an episode of TV musical drama “Smash,” NBC said on Tuesday.

The singer and actress will play herself and sing a number in one episode of the show when it returns in February 2013. The series, starring Debra Messing, Anjelica Huston and Katharine McPhee, dramatizes the backstage life of writers, producers and actors working to create a Broadway musical about Marilyn Monroe.

“Liza Minnelli is the essence of a multi-talented, singular show business sensation, particularly for her extraordinary contributions to Broadway,” Robert Greenblatt, the president of NBC Entertainment, said in a statement.

“So what could be more fitting than to have her legendary talent on a show that celebrates a world Liza has dazzled for decades?” he added

The daughter of director Vincente Minnelli and Hollywood legend Judy Garland, Minnelli, 66, is one of a handful of stars to have won an Oscar, Emmy, Grammy and Tony award.

She is best-known for her portrayal of Sally Bowles in the musical “Cabaret.” She is also expected to revive her role as Lucille on the upcoming fourth season of “Arrested Development,” which is slated to air on Netflix after being canceled by Fox in 2006.

NBC has moved the second season of “Smash” from Monday to Tuesday night, starting on February 5, 2013.

(Reporting by Eric Kelsey; editing by Jill Serjeant and Matthew Lewis)

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Cellphones may get smaller Holiday lift: Gartner

(Reuters) – The pre-Christmas shopping season is likely to boost cellphone sales less that usual this year as a weaker global economy forces consumers to cut back, research firm Gartner said on Wednesday.

“It will be a cautious quarter. Consumers are either cautious with their spending or finding new gadgets like tablets, as more attractive presents,” Gartner analysts said.

Gartner said sales of cellphones declined 3 percent in the third quarter from a year earlier, falling for the third quarter in a row, while sales of smartphones grew 47 percent.

Smartphone growth this year is boosted by strong demand in China, where annual sales will grow to 165-170 million from 78 million a year earlier, it said.

“There is huge growth coming from the Chinese market,” said Gartner analyst Anshul Gupta.

This is helping local players to climb in global cellphone rankings, with ZTE, Huawei and TCL now among the seven largest cellphone vendors globally, Gartner said.

Samsung Electronics continues to lead the global cellphone sales ranking, ahead of Nokia and Apple. In smartphone sales Nokia, which still lead the market early last year, dropped to No 7, Gartner said.

(Reporting By Tarmo Virki)

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Petraeus probe ensnares top U.S. commander in Afghanistan

PERTH, Australia (AP) — In a new twist to the Gen. David Petraeus sex scandal, the Pentagon said Tuesday that the top American commander in Afghanistan, Gen. John Allen, is under investigation for alleged "inappropriate communications" with a woman who is said to have received threatening emails from Paula Broadwell, the woman with whom Petraeus had an extramarital affair.

Defense Secretary Leon Panetta said in a written statement issued to reporters aboard his aircraft, en route from Honolulu to Perth, Australia, that the FBI referred the matter to the Pentagon on Sunday.

Panetta said that he ordered a Pentagon investigation of Allen on Monday.

A senior defense official traveling with Panetta said Allen's communications were with Jill Kelley, who has been described as an unpaid social liaison at MacDill Air Force Base, Fla., which is headquarters to the U.S. Central Command. She is not a U.S. government employee.

Kelley is said to have received threatening emails from Broadwell, who is Petraeus' biographer and who had an extramarital affair with Petraeus that reportedly began after he became CIA director in September 2011.

Petraeus resigned as CIA director on Friday.

Allen, a four-star Marine general, succeeded Petraeus as the top American commander in Afghanistan in July 2011.

The senior official, who discussed the matter only on condition of anonymity because it is under investigation, said Panetta believed it was prudent to launch a Pentagon investigation, although the official would not explain the nature of Allen's problematic communications.

The official said 20,000 to 30,000 pages of emails and other documents from Allen's communications with Kelley between 2010 and 2012 are under review. He would not say whether they involved sexual matters or whether they are thought to include unauthorized disclosures of classified information. He said he did not know whether Petraeus is mentioned in the emails.

"Gen. Allen disputes that he has engaged in any wrongdoing in this matter," the official said. He said Allen currently is in Washington.

Panetta said that while the matter is being investigated by the Defense Department Inspector General, Allen will remain in his post as commander of the International Security Assistance Force, based in Kabul. He praised Allen as having been instrumental in making progress in the war.

But the Allen investigation adds a new complication to an Afghan war effort that is at a particularly difficult juncture. Allen had just provided Panetta with options for how many U.S. troops to keep in Afghanistan after the U.S.-led coalition's combat mission ends in 2014. And he was due to give Panetta a recommendation soon on the pace of U.S. troop withdrawals in 2013.

The war has been largely stalemated, with little prospect of serious peace negotiations with the Taliban and questions about the Afghan government's ability to handle its own security after 2014.

At a photo session with Australian Prime Minister Julia Gillard shortly after he arrived in Perth, Panetta was asked by a reporter whether Allen could remain an effective commander in Kabul while under investigation. Panetta did not respond.

The FBI's decision to refer the Allen matter to the Pentagon rather than keep it itself, combined with Panetta's decision to allow Allen to continue as Afghanistan commander without a suspension, suggested strongly that officials viewed whatever happened as a possible infraction of military rules rather than a violation of federal criminal law.

Allen was Deputy Commander of Central Command, based in Tampa, prior to taking over in Afghanistan. He also is a veteran of the Iraq war.

In the meantime, Panetta said, Allen's nomination to be the next commander of U.S. European Command and the commander of NATO forces in Europe has been put on hold "until the relevant facts are determined." He had been expected to take that new post in early 2013, if confirmed by the Senate, as had been widely expected.

Allen was to testify at his confirmation hearing before the Senate Armed Services Committee on Thursday. Panetta said he asked committee leaders to delay that hearing.

The senior defense official said Panetta has not talked to Allen about the investigation, nor has he discussed the matter with President Barack Obama, although he consulted with unspecified White House officials before making the decision to seek a postponement of Allen's confirmation hearing.

Panetta did talk about the Allen matter with Gen. Martin Dempsey, chairman of the Joint Chiefs of Staff, who happens to also be in Perth for a meeting of American and Australian diplomatic and defense officials. Those talks were starting Tuesday with an official dinner.

With a cloud over Allen's head, it was unclear Tuesday whether he would return to Kabul, even though Panetta said Allen would remain in command. The second-ranking American general in Afghanistan is Army Lt. Gen. James Terry.

NATO officials had no comment about the delay in Allen's appointment.

"We have seen Secretary Panetta's statement," NATO spokeswoman Carmen Romero said in Brussels. "It is a U.S. investigation."

Panetta also said he wants the Senate Armed Services Committee to act promptly on Obama's nomination of Gen. Joseph Dunford to succeed Allen as commander in Afghanistan. That nomination was made several weeks ago. Dunford's hearing is also scheduled for Thursday.

___

Associated Press writer Slobodan Lekic in Kabul, Afghanistan, contributed to this report.

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Arseus makes three acquisitions, sees more this year

BRUSSELS (Reuters) – Belgo-Dutch medical supplies firm Arseus has made three acquisitions in drug compounding and plans to announce more by the end of the year as it seeks to benefit from a growing trend of pharmacists mixing their own medicines.

The firm, which also sells dentist chairs and surgical equipment, said on Tuesday it has made acquisitions in Brazil, Colombia and Scandinavia worth around 16.5 million euros ($ 21 million) in total.

The firm is the only real global company that supplies ingredients for compounding, meaning it has become the consolidator in the sector.

“There are lots of opportunities and we are involved in numerous processes now, so we hope to announce a little bit more before the end of the year,” Chief Executive Ger van Jeveren told Reuters in a telephone interview.

He said the company has 75 million euros in cash that is still available for acquisitions.

Arseus said the three added companies would generate a combined annual revenue of 12 million euros, with a 25 percent core profit margin.

The acquisitions are to be consolidated from Nov 1. ($ 1 = 0.7867 euros)

(Reporting By Ben Deighton; editing by Philip Blenkinsop)

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General investigated for emails to Petraeus friend

PERTH, Australia (AP) — In a new twist to the Gen. David Petraeus sex scandal, the Pentagon said Tuesday that the top American commander in Afghanistan, Gen. John Allen, is under investigation for alleged “inappropriate communications” with a woman who is said to have received threatening emails from Paula Broadwell, the woman with whom Petraeus had an extramarital affair.

Defense Secretary Leon Panetta said in a written statement issued to reporters aboard his aircraft, en route from Honolulu to Perth, Australia, that the FBI referred the matter to the Pentagon on Sunday.

Panetta said that he ordered a Pentagon investigation of Allen on Monday.

A senior defense official traveling with Panetta said Allen’s communications were with Jill Kelley, who has been described as an unpaid social liaison at MacDill Air Force Base, Fla., which is headquarters to the U.S. Central Command. She is not a U.S. government employee.

Kelley is said to have received threatening emails from Broadwell, who is Petraeus’ biographer and who had an extramarital affair with Petraeus that reportedly began after he became CIA director in September 2011.

Petraeus resigned as CIA director on Friday.

Allen, a four-star Marine general, succeeded Petraeus as the top American commander in Afghanistan in July 2011.

The senior official, who discussed the matter only on condition of anonymity because it is under investigation, said Panetta believed it was prudent to launch a Pentagon investigation, although the official would not explain the nature of Allen’s problematic communications.

The official said 20,000 to 30,000 pages of emails and other documents from Allen’s communications with Kelley between 2010 and 2012 are under review. He would not say whether they involved sexual matters or whether they are thought to include unauthorized disclosures of classified information. He said he did not know whether Petraeus is mentioned in the emails.

“Gen. Allen disputes that he has engaged in any wrongdoing in this matter,” the official said. He said Allen currently is in Washington.

Panetta said that while the matter is being investigated by the Defense Department Inspector General, Allen will remain in his post as commander of the International Security Assistance Force, based in Kabul. He praised Allen as having been instrumental in making progress in the war.

The FBI’s decision to refer the Allen matter to the Pentagon rather than keep it itself, combined with Panetta’s decision to allow Allen to continue as Afghanistan commander without a suspension, suggested strongly that officials viewed whatever happened as a possible infraction of military rules rather than a violation of federal criminal law.

Allen was Deputy Commander of Central Command, based in Tampa, prior to taking over in Afghanistan. He also is a veteran of the Iraq war.

In the meantime, Panetta said, Allen’s nomination to be the next commander of U.S. European Command and the commander of NATO forces in Europe has been put on hold “until the relevant facts are determined.” He had been expected to take that new post in early 2013, if confirmed by the Senate, as had been widely expected.

Panetta said President Barack Obama was consulted and agreed that Allen’s nomination should be put on hold. Allen was to testify at his confirmation hearing before the Senate Armed Services Committee on Thursday. Panetta said he asked committee leaders to delay that hearing.

NATO officials had no comment about the delay in Allen’s appointment.

“We have seen Secretary Panetta‘s statement,” NATO spokeswoman Carmen Romero said in Brussels. “It is a U.S. investigation.”

Panetta also said he wants the Senate Armed Services Committee to act promptly on Obama’s nomination of Gen. Joseph Dunford to succeed Allen as commander in Afghanistan. That nomination was made several weeks ago. Dunford’s hearing is also scheduled for Thursday.

___

Associated Press writer Slobodan Lekic in Kabul, Afghanistan, contributed to this report.

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Australia’s INXS calls it quits as touring band after 35 years

SYDNEY (Reuters) – Australian rock group INXS has called it quits as a live touring band after 35 years, thanking fans and honoring late frontman Michael Hutchence in a statement on Tuesday.

INXS, which sold more than 30 million albums worldwide, including more than 10 million alone of their 1987 breakthrough “Kick”, issued the statement after comments by band member Jon Farriss during a weekend performance sparked a frenzy on Twitter.

“We understand that this must come as a blow to everybody, but all things must eventually come to an end,” INXS members Tim, Andrew and Jon Farriss, Kirk Pengilly and Garry Beers said. “We have been performing as a band for 35 years, it’s time to step away from the touring arena.”

“Our music will of course live on and we will always be a part of that,” they added.

INXS was one of the biggest touring bands of the 1980s and 1990s, playing to 80,000 at Wembley Stadium in London and 120,000 in Rio De Janeiro.

But the death of charismatic lead singer Hutchence in 1997 was a major blow.

A U.S. TV talent show for a new frontman was won by Canadian J.D. Fortune, while Terence Trent D’Arby and Jon Stevens also had a turn at the microphone. Irishman Ciaran Gribbin was the last to take the role.

Farriss, the band’s drummer, set the Internet abuzz on Sunday night after he told the audience during a support performance for U.S. band Matchbox Twenty in Perth that it was the last time INXS would perform together. Saxophone player Pengilly later told a radio station the band was not breaking up.

The group declined to comment further on Tuesday.

(Reporting By Grace Williams, editing by Elaine Lies)

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Belize wants to quiz anti-computer virus guru McAfee in murder probe

BELIZE CITY (Reuters) – Police in Belize want to question U.S. anti-computer virus software pioneer John McAfee in connection with the murder of a neighbor he had been quarrelling with, but they say he remains a person of interest at this time and is not a suspect.

McAfee, who invented the anti-virus software that bears his name, has homes and businesses in Belize, and is believed to have settled in the country sometime around 2010.

“He is a person of interest at this time,” said Marco Vidal, head of Belize’s police Gang Suppression Unit. “It goes a bit beyond that, not just being a neighbor.”

Police officers were looking for the software engineer, said Miguel Segura, the assistant commissioner of police.

Asked if McAfee was a suspect, he said: “At this point, no. Our job … is to get all the evidence beyond reasonable doubt that Mr A is the one that killed Mr B.”

“He (McAfee) … can assist the investigation, so there is no arrest warrant for the fellow,” added Segura, who heads the Criminal Investigation Branch.

McAfee’s neighbor, Gregory Viant Faull, a 52-year-old American, was found on Sunday lying dead in a pool of blood after apparently being shot in the head.

McAfee has been embroiled in controversy in Belize before.

His premises were raided in May after he was accused of holding firearms, though most were found to be licensed. The final outcome of the case is pending.

McAfee also owns a security company in Belize as well as several properties and an ecological enterprise.

Reuters was unable to contact McAfee on Monday.

Segura said McAfee had been at odds with Faull for some time. He accused his neighbor of poisoning his dogs earlier this year and filed an official complaint.

“There was some conflict there between (them) … prior to the death of the gentleman,” Segura said. “But those dogs didn’t have a post mortem to see if the toxicology would confirm what type of poison, if any.”

McAfee previously accused the police Gang Suppression Unit of killing his dogs during the May raid.

McAfee was one of Silicon Valley’s first entrepreneurs to amass a fortune by building a business off the Internet.

The former Lockheed systems consultant started McAfee Associates in 1989, initially distributing its anti-virus software as “shareware” on Internet bulletin boards.

He took the company public in 1992 and left two years later following accusations that he had hyped the arrival of a virus known as Michelango, which turned out to be a dud, to scare computer users into buying his company’s products.

(Reporting by Simon Gardner and Gabriel Stargardter in Mexico City and Jim Finkle; Editing by Kieran Murray and Todd Eastham)

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