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Former bank CEO convicted in fraud

SAIPAN, Northern Mariana Islands >> A former chairman and chief executive officer of the Bank of Saipan faces a possible 10-year prison term after being convicted of wire fraud and conspiracy charges.

Tomas B. Aldan and two businessmen were found guilty by a federal court jury for a fraud scheme that prosecutors said cost the bank more than $6 million.

Aldan, Bert Douglas Montgomery and Dusean Berkich were accused of conspiring to fraudulently obtain ownership and control of Bank of Saipan. They then made a series of fraudulent loans for the purpose of enriching themselves and their associates, prosecutors said.

After deliberating for six days, the jury convicted Aldan on Friday of one count of conspiracy to commit wire fraud and one count of wire fraud.

Montgomery and Berkich were each found guilty of one count of conspiracy to commit wire fraud, two counts of wire fraud, one count of money laundering conspiracy and three counts of money laundering. They were each acquitted of one wire fraud count.

Montgomery and Berkich could end up being sentenced to 95 to 100 years in prison.

Saipan is in the Northern Mariana Islands, a U.S. commonwealth about 3,700 miles west of Hawaii.

Feds say Merck pressured docs

PHILADELPHIA >> Federal prosecutors said yesterday a company that was supposed to help health plans find low-cost prescription drugs instead pressured doctors to switch patients to medications made by its owner, pharmaceutical giant Merck & Co.

U.S. Attorney Patrick Meehan said his office has joined a pair of civil "whistleblower" lawsuits against Medco Health Solutions, accusing the Merck subsidiary of providing misleading information to the government in connection with its contract to manage drug benefits for federal employees.

More than 1,000 companies have hired Medco to coordinate prescription drug coverage for employee health plans, making it the nation's largest manager of pharmacy benefits, and the company is supposed to use its bulk-purchasing power to lower drug costs.

Microsoft targets digital assistants

SEATTLE >> Microsoft Corp. unveiled new software for handheld devices yesterday as part of its efforts to boost market share for advanced mobile phones, personal digital assistants and other "smart" devices.

The new version of "Pocket PC" software carries the name Windows Mobile 2003 to help link it with the company's Windows operating system, said Ed Suwanjindar, product manager with Microsoft's Mobility Group.

The software can automatically detect and connect devices to the Internet if there is a wireless WiFi network in place. Many coffee shops, copy centers and other locations are installing such networks.

Unilever sales lagging in first half

AMSTERDAM, Netherlands >> Anglo-Dutch consumer products maker Unilever said yesterday its sales for the first half of the year were lagging expectations and that it will miss its growth forecasts. Unilever -- the maker of Lipton Tea, Dove soap and SlimFast diet foods -- said it expects sales growth of 3 percent in its leading brands in the first half.

Tire safety standards to get federal upgrade

WASHINGTON >> Tires made for passenger cars and light trucks will be required to withstand new speed and endurance tests by 2007 in the first new federal safety standards for tires since 1967.

Congress ordered the National Highway Traffic Safety Administration to make the changes in 2000 after the recall of millions of Firestone tires.

"Without question, these new performance requirements will improve tire safety," said NHTSA Administrator Jeffrey Runge.

Most tires on the market already comply with the new standards. NHTSA estimated that 5 percent to 11 percent of tires will have to be redesigned or modified to comply.

The new requirements are expected to cost tire manufacturers $31.6 million, NHTSA said. The agency estimates they will save at least four lives and prevent 102 injuries each year.

Boeing sees little improvement soon

SOUTHERN SHUNEH, Jordan >> Plane orders announced at last week's Paris Air Show don't make Boeing Co.'s Chief Executive Philip Condit more optimistic about the state of the aviation market.

Talking to Dow Jones Newswires on the sidelines of the World Economic Forum conference in Jordan, Condit said: "For the most part, those were very long-term orders."

"The market is going to come back. There's no question in my mind that that's going to happen," he said. "But I wouldn't try to read near-term market outlook from those orders."

Boeing's commercial aircraft production next year will be similar to production this year, with a slight upturn in 2005 being "the best we could probably do," Condit said.

In other news ...

>> AirTran Airways has reached a tentative labor contract with its flight attendants, officials said yesterday, but details weren't released.

>> A Manhattan judge denied a defense request yesterday to dismiss charges that former Tyco International executives Dennis Kozlowski and Mark Swartz stole some $600 million from the company.