Honolulu Star-Bulletin Business Briefs /2005/08/25/

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HAWAII
Broker-dealer to pay penalty over annuities

Securities broker-dealer Waddell & Reed Inc. has agreed to pay a civil penalty of $21,744 to the state and restitution of $9,525 to Hawaii clients because the company promoted unsuitable variable annuity exchanges, the state said yesterday.

The settlement is part of an $18 million nationwide investigation by regulators and the securities industry. Waddell & Reed encouraged its sales force to ask clients to switch to new variable annuity contracts with regard to surrender fees, and 10 Hawaii investors did so, paying $9,525 in such fees, the state said.

The firm assured the state it will pay restitution within six months, the state said.

NATION
Oil prices jump above $67 a barrel

Oil prices surged to a new high above $67 a barrel yesterday on concerns about a storm that could hit production sites in the Gulf of Mexico and a U.S. government report that showed a decline in the nation's gasoline supply.

Natural gas futures also rallied on the storm fears -- even though forecasters anticipate a weak hurricane -- as traders recalled the months-long disruption to oil and gas production in the region following last year's Hurricane Ivan.

"The fear of a replication of that is going to keep the market on its toes and we could easily test $70 a barrel," said Marshall Steeves, an analyst at Refco Group Inc. in New York.

AOL to pay $1.25M to settle inquiry

For exasperated customers who have tried to cancel a service to no avail, an explanation may be at hand. A settlement reached yesterday with America Online established that some sales representatives receive bonuses to keep consumers from leaving.

AOL, the country's largest Internet service, agreed to pay $1.25 million in penalties and to refund some customers' subscription fees after the New York attorney general, Eliot Spitzer, accused the company of making it unduly difficult for customers to drop the service.

AOL admitted no wrongdoing in the settlement but said it would no longer tie bonuses to success in deflecting cancellation requests. According to Spitzer's office, internal office brochures promoted how employees could earn a bonus as high as $3,115 a month by recording 975 "saves."

Anheuser paying $120M to Maris

ORLANDO, Fla. » Anheuser-Busch agreed to pay at least $120 million in cash to the family of former home run king Roger Maris as part of a settlement that ended a defamation trial and other litigation, according to an SEC filing the brewer made yesterday.

The St. Louis-based company will record a $105 million pretax charge in the third quarter ending Sept. 30 as a result of the settlement with the Maris family owned beer distributorship, Maris Distributing Co., according to the filing with the Securities and Exchange Commission.

HAWAII INC.

New Jobs

» The United Japanese Society of Hawaii has installed Ben Fukumoto as president. He will also serve as the Hiroshima-Hawaii Sister-State/Prefecture Committee vice president and the Honolulu Hiroshima Kenjin Kai immediate past president.

» SMG Hawaii has hired Jim LaBadie as the Hawaii Convention Center's Midwest sales manager. He will be responsible for promoting and selling citywide conventions, reserving and booking function space, creating and evaluating sales programs and responding to sales inquiries and leads. He previously served as Fort Worth Convention and Visitors Bureau's Midwest region sales director.

» Grubb & Ellis/CBI Inc. has hired Craig Hudson as retail sales associate who will focus on Waikiki. He will work in the retail sales and leasing specialty group. He most recently served as an Engineered Systems product sales person in Kailua.

» Atlas Insurance Agency Inc. has appointed Sharon K. Ohata claims consulting services vice president. She will be responsible for overseeing complex workers' compensation claims and serving as client consultant on return-to-work and other workers' compensation cost containment programs. She has over 25 years of insurance experience.

» The Sheraton Kauai Resort has appointed Vanessa Schwartzel human resources director. She will be responsible for directing employment, wage and salary administration, benefits, training, employee/labor relations, organizational development and payroll for the resort. She previously served as director employment development for Hotel Vitale in San Francisco.

» The state Department of Agriculture's Aquaculture Development Program has hired Allen C. Riggs as its veterinary medical officer III. He previously worked in private practice in Florida as an aquatic animal veterinarian.

Promotions

» Bishop Museum has appointed former U.S. Ambassador Alvin Adams counselor to the president for international affairs, Bill Brown. He will be responsible for assisting the president with strengthening the museum's international work and developing new international initiatives.

» Laird Christianson Advertising has promoted Angela Neri to client service group assistant account executive. She previously served as an account coordinator for the company. She joined the company in February.

>> Marriott International Inc. has appointed Paul Toner regional vice president of sales and marketing for the Asia, Pacific and Australia region. He will be responsible for the coordination of all sales and marketing activities as well as developing an overall strategy for the region. He most recently served as area director of marketing for the Pacific Islands and Japan.

» Turtle Bay Resort has promoted Wendell E. Tuisaula to information technology director. He previously worked for the Kaneohe Marine Corps in the Morale, Welfare and Recreation department. He joined the resort in 1996.

» Hawaii Air Ambulance has appointed Alex Kluger assistant vice president of business and finance and director of national programs. He will be responsible for overseeing all aspects of business and finance for the company and developing new strategies to help meet the needs of the company's clients. He previously provided educational materials for Hawaii Air Rescue and helped produce the company's annual reports.

» Pankow Special Projects LP has promoted Donald Carp to vice president. He will be responsible for leading the construction operations of Honolulu's special projects construction group. He previously served as group manager for the Honolulu office.