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Adelphia founding family members indicted
NEW YORK >> Cable industry pioneer and Adelphia Communications Corp. founder John Rigas and two of his sons were indicted on fraud charges Monday, paving the way for the three to stand trial for allegedly looting the troubled cable operator.Former Adelphia CEO John Rigas, 77, and his sons Timothy and Michael, also former high-ranking company executives, were named in the indictment filed in Manhattan federal court.
The three were previously charged in a criminal complaint filed by prosecutors in July. The indictment, which allows for a trial, replaces the complaint.
The indictment includes 24 counts of securities, wire and bank fraud, and conspiracy in a scheme to defraud investors by making false statements about the company's off-balance sheet debt and inflated operating results, and improper use of the company's funds.
The government is seeking $2.5 billion in forfeitures, representing illegal proceeds from the alleged scheme, said Timothy Coleman, Assistant U.S. Attorney in Manhattan. An arraignment was scheduled for October 2.
Leading indicators fell 0.2% in August
Washington >> The U.S. economy will sputter through the start of 2003, according to an index of leading indicators that projects conditions a half-year ahead.The Conference Board's index, which uses previously reported statistics to gauge the economy's strength, declined for a third straight month. It dropped 0.2 percent after falling 0.1 percent in July. Rising claims for unemployment insurance and weak consumer confidence weighed on the index.
"There is a danger that this weak recovery could stall, especially if the consumer market starts to slow," said Ken Goldstein, an economist who compiles the report for the New York group. Stock market declines and a decrease in second-quarter household net worth suggests spending will cool, according to a Bloomberg News report.
Another Andersen client files for bankruptcy
SAN DIEGO >> Software maker Peregrine Systems Inc. filed for bankruptcy yesterday and said it planned to lodge a $250 million lawsuit today against its former auditor, Arthur Andersen LLP, blaming it for Peregrine's financial straits.Peregrine began a downward spiral in May with the disclosure of irregularities in financial statements audited by Andersen. An internal investigation found revenue inflated by as much as $250 million from April 1999 to the end of 2001. The company said it improperly booked the sale of accounts receivable as revenue.
A cash and credit crunch, an investigation by the Securities and Exchange Commission and shareholder lawsuits followed the disclosures. Peregrine's stock, which trades for pennies, was removed last month from the Nasdaq Stock Exchange.
AARP reports most cannot afford to retire
NEW YORK >> A large majority of workers over 45 plan to stay on the job into their retirement years, with 80 percent saying most people cannot afford to quit work altogether, according to a new survey by the AARP.The survey, released today along with the organization's list of best companies for older employees, found that 69 percent of workers say they will keep working in retirement.
Many of the figures gathered in the survey are similar to those AARP has seen in earlier studies. But in one notable difference, 56 percent of those surveyed say they need to work to pay for health care costs for themselves and their families, up 15 percent from a 1985 survey.
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New jobs
>> Coldwell Banker Pacific Properties has hired Iris Shinohara as broker In charge of its Kapiolani Office. She has 18 years of experience in the real estate industry, most recently as a realtor with East Oahu Realty Inc. Shinohara is responsible for strategic planning, financial management, marketing strategies and personnel support and development for the Kapiolani Office. Coldwell Banker Pacific Properties has five offices on Oahu and more than 350 sales associates.>> Budget Car and Truck Rental has hired Kathy Mamalias as recovery specialist. She is responsible for billing, collecting and following up with claims on damaged rental cars. Prior to joining Budget, she was at Five Star Subaru, where she handled accounts payable and other administrative duties as office manager. Promotions
>> The Outrigger Properties division of Outrigger Enterprises Inc. has promoted Eric Masutomi to vice president of planning. He continues to oversee the planning and development of the real estate assets of the Outrigger group of companies, including the 12 hotels the company owns in Waikiki and the $300 million Waikiki Beach Walk development project. Masutomi has more than 20 years of experience in land use planning and development in Hawaii.
>> Michelle Quenga has been promoted from sales assistant to sales manager for the Asian market at Atlantis Adventures. She will promote the Atlantis product line to the eastbound travel market through suppliers like wholesalers, ground transportation operators and travel agents. Much of her 16 years of travel industry experience has been spent working with Japanese travelers.