Business
Frustrated with crowded resorts, more skiers risk avalanche hazards in backcountry
MAMMOTH LAKES, Calif. — On a clear, cold day in mid-February, we had spent hours on backcountry skis trudging up and across a remote mountainside in the eastern Sierra when we noticed that the trees directly above us were much smaller than the others we had passed along the way.
Still panting from the workout, I looked down the steep slope — something I had carefully avoided up to that point — and saw more suspiciously small trees stretching below us.
“Avalanche,” said my ski partner, Howie Schwartz, a veteran backcountry guide. “Huge one, back in the ’80s, reached all the way down to the valley.”
Schwartz demonstrates how to use probes designed to punch holes in avalanche debris to make contact with a buried ski partner.
(Brian van der Brug / Los Angeles Times)
To his trained eye, the nearly vertical strip of new growth was a telling sign that we were slogging across the high-alpine version of a bowling alley. On the wrong day, tons of snow piled on the ridge a thousand feet above could release without warning and crash down like a wave that, instead of washing over us, would bury us and quickly solidify into the consistency of concrete.
The odds were firmly in our favor that day: There had been no new snow recently or abrupt changes in the temperature. Still, it was best to not linger, Schwartz said, with a nod to make sure I followed him across to the taller trees.
Avalanches are an unavoidable fact of life in the mountains. Two days after our trip, following a storm that dumped 6 feet of snow in 36 hours, a pair of ski patrollers were caught in an avalanche at nearby Mammoth Mountain resort. One was extracted without serious injury; the other was hospitalized but did not survive.
On the same day, two small avalanches struck at Palisades Tahoe. Nobody was injured, but a year ago four people were trapped and one died in an avalanche at the resort.
As shocking and sad as those cases are, they happened on some of the most aggressively protected slopes in the world. Large commercial ski resorts such as Mammoth and Palisades employ patrol teams that go out every morning before the lifts open to test the stability of the snowpack.
A growing number of skiers are seeking out backcountry slopes, trading the relative safety of crowded resorts for the silence and solitude of untrammeled runs.
(Brian van der Brug / Los Angeles Times)
If anything looks suspicious, they deliberately trigger avalanches — using explosives for big stashes of snow, using their skis and body weight for smaller ones — in the hope that no unexpected slides will occur when paying customers are enjoying themselves downhill.
But if things can go wrong at carefully managed resorts, imagine how much risk there is in the backcountry where nobody patrols, cellphone signals are spotty and, even if you can make a call, help might take hours to reach you.
On Monday, a 46-year-old backcountry skier was killed in an avalanche just south of Lake Tahoe. Due to what deputies called “extremely hazardous” conditions, it took an El Dorado County search-and-rescue team more than 24 hours to retrieve the body. They had to use explosives to set off avalanches in the area before it was safe for them to go in, according to a sheriff’s department post on Facebook.
In the last decade, at least 245 people in the U.S. have been killed by avalanches — the vast majority in the backcountry, according to data compiled by the Colorado Avalanche Information Center and the U.S. Forest Service. Some victims were hikers and snowmobilers, but more than half were skiers.
That’s a shocking number given how small the community of hardcore backcountry skiers is. Seemingly everyone who makes the sport a significant part of their lives has lost at least one friend to an avalanche.
“I know of far, far too many who have died,” said Schwartz, 52, who has been guiding professionally for three decades and helped design the curriculum for the country’s most commonly taught avalanche training course. “The longer you do this, the more people you know who die, even professionals, even other guides.”
Schwartz, left, and Dolan install climbing skins, synthetic material that makes it possible to climb to the top of a run wearing backcountry skis.
(Brian van der Brug / Los Angeles Times)
Despite the obvious risks, there has been a steady rise in the number of people heading to the backcountry to “earn their turns” in recent years. There was a surge 2020 after ski resorts shut down due to COVID-19, said Steve Mace, director of the Eastern Sierra Avalanche Center, which publishes daily updates on the weather and avalanche risk in California’s high country.
But the number of backcountry skiers didn’t plummet after the pandemic emergency ended, Mace said. One reason is the eye-opening cost of lift tickets: A single day of skiing at Mammoth can cost as much as $219 this season. Another is the crowds: Despite the high cost, standing in a lift line on a holiday weekend can feel a lot like staring at taillights in rush hour on the 405 Freeway.
And then there is the resort vibe. When 19th century California naturalist John Muir famously said, “The mountains are calling and I must go,” he couldn’t possibly have imagined slushy parking lots crowded with Teslas and short tempers, or bars selling $15 beers.
The allure — some would say siren song — of the backcountry is the absence of everything resorts represent.
Even on the most hectic days within the boundaries of Mammoth Mountain, the untouched, unnamed slopes nearby offer precious silence and solitude. With no ski lifts you have to work a lot harder, but there’s something purifying in the effort it takes to climb hundreds of vertical feet to reach the top of a perfect line. The descent through unimaginably light, untracked powder is the reward.
On a good day — with a knowledgeable partner and the avalanche odds in your favor — all it costs is a few calories and a bit of sweat.
“The longer you do this, the more people you know who die, even professionals, even other guides,” Schwartz says of backcountry skiing.
(Brian van der Brug / Los Angeles Times)
With all of that in mind, Schwartz and I drove to the end of Old Mammoth Road on a recent weekday, where the gleaming vacation homes end and the landscape turns steeply up toward the Sierra crest.
We glued “skins” to the bottoms of our skis, synthetic material that allows the skis to glide forward through the snow but stops them from sliding backward, making uphill travel possible. We clicked into bindings that held only our toes in place for the uphill, and then, with a quick adjustment, locked our heels in place for the downhill run.
The temperature was well below freezing, but we left most of our layers in our backpacks, because the uphill portion would be an intense workout. We didn’t want to get soaked in sweat on the way up only to freeze on the way down.
Our safety gear included avalanche beacons, devices about the size of an old Blackberry that can send and receive electronic signals. We strapped them to our chests so that if one of us got buried in an avalanche, the other would, theoretically, be able to find the beacon.
We also had probes: long, thin sticks that unfold like tent poles and are designed to punch holes in avalanche debris to make contact with a buried partner. You hope you don’t poke someone in the eye, but if you’re using one, it’s a life-or-death emergency, so it’s no time to be squeamish. We also had collapsible shovels to help us dig if we were lucky enough to find our friend.
We pulled out all the gear and tested it at the bottom of the hill, an exercise that was more sobering than reassuring. Every step in the search-and-rescue process would take time, and someone buried in snow is likely to suffocate within minutes. It became obvious that the best way to stay safe in the backcountry would be to avoid having to use the emergency gear altogether.
Avalanche beacons transmit electronic signals that can help rescuers locate a skier buried in an avalanche.
(Brian van der Brug / Los Angeles Times)
That’s harder than it sounds. Predicting whether a snowy hillside might slide depends on a dizzying array of factors, most of which are not obvious to the naked eye. For example, avalanches usually occur on slopes with a 30-degree to 45-degree angle. I’ve been skiing, hiking and climbing for nearly four decades, and I can tell you if something is steep, but the mathematical degree of its slope? I have no idea.
Another crucial factor is the way snow is layered. Think of it like a cake. Some storms are warm and wet, like frosting; others are cold and dry, like crumbly pastry. If a firm layer is resting on top of a weak layer, that’s a recipe for disaster. But it’s difficult to know without encyclopedic knowledge of the season’s weather in that precise location, or digging a deep pit and carefully examining each striation — like performing a bit of impromptu archaeology before your workout.
“If I were going to tell you one thing that really gets my hackles up, it’s a persistent weak layer,” said Mace, the avalanche forecaster. All the other dangers are relatively short-lived. New snow from a storm settles pretty quickly, for example. But a weak layer buried underneath the surface can last for months.
That’s where the Eastern Sierra Avalanche Center website comes in. It provides a color-coded scale of the threat level that takes into account recent weather, the nature of the terrain and the likely consistency of the layers lurking beneath the surface.
Mace, 37, worked for years as a ski patroller and mountain guide before taking on the avalanche forecasting duties at the Eastern Sierra Avalanche Center. Despite the risks, he does almost all of his skiing in the backcountry.
“It brings me a lot of joy and peace. I love the uphill as much as the down,” he said. But Mace, too, said he has seen his share of tragedy. “I have been in this field a long time, and I have lost a lot of friends, people I loved.”
The most valuable lesson he has learned is patience. If he sees a particularly pretty line of snow carving down through some rocks, like an elegant white necklace, he doesn’t just throw on his skis, trudge up the hill and charge down, the way he did in his 20s.
These days, he studies the slope, like a gem cutter before lifting his saw. He watches the weather, assesses the layers and waits for the perfect dusting of powder. He accepts that it might take years for the stars to align.
“It’s a very harsh learning environment,” Mace said, with lots of unreliable “positive feedback.” You might ski something steep and wonderful, where nothing goes wrong, and think you’ve figured things out, he said.
“But there are a million reasons why an avalanche might not release” on any given day, Mace said. “It may not be that you made good choices; it may be that you just got lucky.”
Both Mace and Schwartz said it can be hard to find the right tone when offering advice to new backcountry skiers. They don’t want to underplay the dangers, but they also don’t want to discourage someone from pursuing what, for them, has become a passion.
“What you see more often than not,” Schwartz said, “is that people know what they’re doing is dangerous. They know there’s a mortal risk. But they do it anyway.”
I struggled, mightily, as Schwartz and I continued up and across the rugged slope. I’m a confident resort skier, but it was my first time in the backcountry and the unmanicured conditions proved tougher than I expected.
Wind had scoured away most of the powdery snow, and rain had left a slick, brittle crust. I grunted and cursed trying to get the unfamiliar skis to go where I pointed them. Schwartz smiled patiently and said the snow was “a little grabby,” anyone would struggle with it.
He didn’t, though.
When we finally approached the taller trees, the crunch-crunch of every stride grew steadily softer. There, sheltered beneath the branches of the towering pines, the snow was untouched, like a hillside covered in a foot and a half of down feathers.
Schwartz grinned and said, “This is it, man, this is why we’re here.”
With no ski lifts, backcountry skiers have to work a lot harder, often climbing hundreds of vertical feet to reach the top of a perfect line.
(Brian van der Brug / Los Angeles Times)
He reminded me to wait for him to get a good distance ahead. That way, if one of us kicked off an avalanche, we’d be far enough apart that it probably wouldn’t swallow us both, leaving one guy free to rescue the other.
And then he turned his skis parallel with the fall line, gathered some speed and started making effortless bouncy turns through the trees. The snow was so soft, he floated hundreds of feet to the valley floor in perfect silence.
Well, almost perfect. I could hear him laughing.
Business
California crypto company accused of illegally inflating Katy Perry NFTs and fraud
Four years ago, California startup Theta Labs’ cryptocurrency was soaring, and its future appeared bright when it landed a partnership with pop star Katy Perry.
The Bay Area company had built a marketplace for digital collectibles known as nonfungible tokens, or NFTs, and had teamed up with Perry to launch NFTs tied to her Las Vegas concert residency. Its THETA token jumped by more than 500% in early 2021, reaching a peak of more than $15, making it one of the world’s most valuable cryptocurrencies. Later in the year, the spotlight shone on the company when it announced the Perry partnership.
“I can’t wait to dive in with the Theta team on all the exciting and memorable creative pieces, so my fans can own a special moment of my residency,” Perry said in a June 2021 news release.
Today, like many cryptocurrencies, THETA is 95% off its 2021 peak. It took a hit this week after former executives accused it of manipulating markets to dupe consumers into buying its products. On Tuesday, it was trading at less than 30 cents.
Two former executives from Theta Labs sued the startup, alleging in separate lawsuits that the company and its chief executive, Mitch Liu, engaged in fraud and manipulated the cryptocurrency market for his benefit. Liu retaliated against them after the employees refused to engage in deceptive business practices and raised concerns, the lawsuits say.
Some of the alleged misconduct involved placing fake bids on Perry’s NFTs, engaging in token “pump and dump” schemes and using celebrity endorsements and “misleading” partnerships with high-profile companies such as Google to deceive the public, according to the December lawsuits filed in Los Angeles Superior Court.
Perry is not accused of any wrongdoing in the suit, and Theta denies the charges.
The lawsuits against Theta Labs are the latest controversy to rattle an industry beset by scandals.
Cryptocurrency exchange FTX collapsed, and its founder, Samuel Bankman-Fried, was sentenced to 25 years in prison in 2024 after being found guilty of multiple fraud charges. Binance founder and former Chief Executive Changpeng Zhao also got prison time after he pleaded guilty to violating money laundering laws, but President Trump pardoned him this year.
The U.S. Securities and Exchange Commission previously charged celebrities such as Kim Kardashian, Lindsay Lohan, Jake Paul and Ne-Yo for promoting crypto without disclosing they were paid to do so.
Theta Labs created a network that rewarded people with cryptocurrency for contributing spare bandwidth and computing power to enhance video streaming and lower content delivery costs. The company describes Theta Network as a “blockchain-powered decentralized cloud for AI, media and entertainment.” The network has two tokens: THETA, used to secure the network, and TFUEL, used to pay users for services and power operations.
The whistleblowers suing Theta Labs are Jerry Kowal, its former head of content, and Andrea Berry, previously the company’s head of business development.
“Liu used Theta Labs as his personal trading vehicle, perpetrating fraud, self-dealing, and market manipulation,” said Mark Mermelstein, Kowal’s attorney, in a statement. “His calculated ‘pump-and-dump’ schemes repeatedly wiped out employee and investor value. This suit is about demanding accountability and proving no one is above the law.”
Theta, Liu and its parent company, Sliver VR Technologies, deny the allegations and “intend to prove with evidence the fallacy of the stories being told in the lawsuits,” according to Kronenberger Rosenfeld, the law firm representing the defendants. The lawsuits are an attempt to paint the company in a negative light in hopes of securing a settlement, a lawyer for the firm said.
Kowal has sued his former employers before. In 2014, he accused Netflix of spreading false claims that he stole confidential information and Amazon of wrongful termination.
The latest lawsuits allege that Liu profited from buying and selling THETA tokens using insider knowledge about partnerships with celebrities, studios and others in the entertainment industry.
“Liu’s true motive in pursuing such partnerships was not to develop a sustainable content business but to generate publicity that could be used to artificially inflate token prices for Liu’s personal gain,” Kowal’s lawsuit says.
Kowal worked for Theta from 2020 to 2025.
In 2020, Liu traded and sold tokens knowing that the company would close a content licensing deal with MGM Studios, according to the lawsuit. After the deal’s announcement, THETA token’s market capitalization increased by more than $50 million in just 24 hours, the lawsuit says.
When NFTs started to take off in 2021, Kowal closed deals with high-profile partners such as Perry, Fremantle Media and Resorts World Las Vegas for the startup’s NFT marketplace.
As part of the deal with Perry, the singer received $8.5 million and additional warrants for the right to license her image and likeness for the NFTs.
To inflate the price and demand for these digital collectibles, Liu allegedly made bids on NFTs and directed employees to do the same. This led to people overpaying for the Perry NFTs.
Representatives for Perry didn’t immediately respond to a request for comment.
Multiple examples of alleged manipulation are outlined in the lawsuits. In one instance from 2022, the startup launched a new token called TDROP that employees also received as part of a bonus.
Liu gained control of 43% of the supply of the cryptocurrency, according to Kowal’s lawsuit. When the TDROP token reached a high, he then sold the token, and its price collapsed by more than 90% within months.
Berry’s lawsuit also alleges that Theta Labs announced “misleading” or fake partnerships with high-profile companies such as Google and entities including NASA to pump up the value of the THETA token. Theta paid for Google Cloud products but claimed it was a partner when it was a Google customer, according to the lawsuit.
Business
Courts rejects bid to beef up policies issued by California’s home insurer of last resort
Retired nurse Nancy Reed has been through the ringer trying to get insurance for her home next to a San Diego County nature preserve.
First, she was dropped by her longtime carrier and forced onto the state’s insurer of last resort, the California FAIR Plan, which offers basic fire policies — something thousands of residents have experienced at the hands of fire-leery insurance companies.
But what she didn’t expect was how hard it would be to find the extra coverage she needed to augment her FAIR Plan policy, which doesn’t cover common perils such as water damage or liability if someone is injured on a property.
She secured the “difference-in-conditions” policies from two insurers, only to be dropped by both before finally finding another for her Escondido home.
“I’ve lived in this house for 25 years, and I went from a very fair price to ‘we’re not insuring you anymore’ — and I’ve had three different difference-in-conditions policies,” said Reed, 71, who is paying about $2,000 for 12 months of the extra coverage. “And I’m holding my breath to see if I will be renewed next year.”
Now, a Department of Insurance regulation that would have required the FAIR plan to offer that additional coverage has been blocked by a state appeals court — leaving the plan’s customers to find that insurance in a market widely considered dysfunctional.
The court ruled earlier this month that the order would have forced the plan to offer liability insurance, which was not the intent of the Legislature when it established the plan in 1968 to offer essential insurance for those who couldn’t get it.
“We appreciate that the court confirmed the California FAIR Plan is designed and intended to operate as California’s insurer of last resort, providing basic property coverage when it cannot be obtained in the voluntary market,” said spokesperson Hilary McLean.
Insurance Commissioner Ricardo Lara said he is “looking at all available options” following the decision. “I’ve been fighting so people can have access to all of the coverage the FAIR Plan is required by law to provide,” he said in a statement.
Lara has faced criticism from consumer advocates who’ve called for his resignation over his response to the state’s ongoing property insurance crisis.
A FAIR Plan policy covers fires, lightning, smoke damage and internal explosions, as well as vandalism and some other hazards at an additional cost. But in addition to water damage and liability protection, it doesn’t cover such common perils as theft and the damage caused by trees falling on a house.
The demand for the additional coverage — commonly referred to as a “wrap-around” policy — has become even greater than in 2021 when Lara issued the order overturned on appeal.
The FAIR Plan at the time had about 160,000 active dwelling policies following a series of catastrophic wildfires, including the 2018 fire that nearly destroyed the mountain town of Paradise. By September, that number had grown to 646,000.
The insurance department lists less than two dozen companies that offer wrap-around policies, including major California home insurers such as Mercury and Farmers and a a number of smaller carriers.
Broker Dina Smith said that to find the coverage for her home insurance clients she needs to place about 90% of them with carriers not regulated by the state — with the combined coverage typically costing at least twice as much as a regular policy.
“The [market] is very limited,” said Smith, a managing director at Gallagher.
Safeco has not written California wrap-around coverage since the beginning of the year and will begin non-renewing existing policies next month. Smith also said carriers are being selective, with the ones that offer the coverage often demanding exclusions, such as for certain types of water damage.
“If I’ve got a newer home with no prior claims … for liability losses, it’s going to be easy to write. If I get a home that is built in the 1950s that might still have galvanized pipes … that’s going to be a tough one,” she said.
Attorney Amy Bach, executive director of United Policyholders, a San Francisco consumer group, said the difference-in-conditions, or DIC, market is getting just as problematic for homeowners as the overall market.
“The market is not as strong as it needs to be … given how many people are in the FAIR Plan, and there aren’t as many DIC options — with the DIC companies being just as picky as the primary insurers,” she said.
There is also confusion about the policies, she said. Her group is considering pushing for a law next year that would clearly label the coverage so consumers better understand what they are buying.
Business
Student Loan Borrowers in Default Could See Wages Garnished in Early 2026
The Trump administration will begin to garnish the pay of student loan borrowers in January, the Department of Education said Tuesday, stepping up a repayment enforcement effort that began this year.
Beginning the week of Jan. 7, roughly 1,000 borrowers who are in default will receive notices informing them of their status, according to an email from the department. The number of notices will increase on a monthly basis.
The collection activities are “conducted only after student and parent borrowers have been provided sufficient notice and opportunity to repay their loans,” according to the email, which was unsigned.
The announcement comes as many Americans are already struggling financially, and the cost of living is top of mind. The wage garnishing could compound the effects on lower-income families contending with a stressed economy, employment concerns and health care premiums that are set to rise for millions of people.
The email did not contain any details about the nature of the garnishment, such as how much would be deducted from wages, but according to the government’s student aid website, up to 15 percent of a borrower’s take-home pay can be withheld. The government typically directs employers to withhold a certain amount, similar to a payroll tax.
A borrower should be sent a notice of the government’s intent 30 days before the seizure begins, according to the website, StudentAid.gov.
The administration ended a five-year reprieve on student loan repayments in May, paving the way for forced collections — meaning tax refunds and other federal payments, like Social Security, could be withheld and applied toward debt payments.
That move ushered in the end of pandemic-era relief that began in March 2020, when payments were paused. More than 9 percent of total student debt reported between July and September was more than 90 days delinquent or in default, according to the Federal Reserve Bank of New York. In April, only one-third of the 38 million Americans who owed money for college or graduate school and should have been making payments actually were, according to government data.
“It’s going to be more painful as you move down the income distribution,” said Michael Roberts, a professor of finance at the Wharton School at the University of Pennsylvania. But, he added, borrowers have to contend with the fact that they did take out money, even as government policies allowed many to put the loans at the back of their minds.
After several extensions by the Biden administration, payments resumed in October 2023, but borrowers were not penalized for defaulting until last year. About five million borrowers are in default, and millions more are expected to be close to missing payments.
The government had signaled this year that it would send notices that could lead to the garnishing of a portion of a borrower’s paycheck. Being in collections and in default can damage credit scores.
The government garnished wages before the pandemic pause, said Betsy Mayotte, president of the Institute of Student Loan Advisors, which provides free advice for borrowers. But the 2020 collections pause was the first she was aware of, she said, and that may make the deductions more shocking for people who have not had to pay for years.
“There’s a lot of defaulted borrowers that think that there was a mistake made somewhere along the line, or the Department of Education forgot about them,” Ms. Mayotte said. “I think this is going to catch a lot of them off guard.”
The first day after a missed payment, a loan becomes delinquent. After a certain amount of time in delinquency, usually 270 days, the loan is considered in default — the kind of loan determines the time period. If someone defaults on a federal student loan, the entire balance becomes due immediately. Then the loan holder can begin collections, including on wages.
But there are options to reorganize the defaulted loans, including consolidation or rehabilitation, which requires making a certain number of consecutive payments determined by the holder.
Often, people who default on debt owe the smallest amounts, said Constantine Yannelis, an economics professor at the University of Cambridge who researches U.S. student loans.
“They’re often dropouts or they went to two-year, for-profit colleges, and people who spent many, many years in schools, like doctors or lawyers, have very low default rates,” he said.
This year, millions of borrowers saw their credit scores drop after the pause on penalties was lifted. If someone does not earn an income, the government can take the person to court. But, practically speaking, a borrower’s credit score will plummet.
Dr. Yannelis added that a common reason people default was that they were not aware of the repayment options. There are plans that allow borrowers to pay 10 percent of their income rather than having 15 percent garnished, for example.
The whiplash policy changes around the time of the pandemic were “a terrible thing from a borrower-welfare perspective,” Dr. Yannelis said. “Policy uncertainty is really terrible for borrowers.”
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