For years NovaGold Resources has excited investors, like billionaires George Soros, John Paulson and Thomas Kaplan, who were bullish on gold.

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Sicignano testified that the first time he knew such arrangements were made was when former New York Knick John Starks -- one of Kaplan's favorite sports figures -- visited the club.

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Proof of this dismal state of affairs came this week with the publication of a supportive profile of University of Chicago professor John Mearsheimer in The Atlantic Monthly written by the magazine's in-house foreign policy guru Robert Kaplan.

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