Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!usa-post Newsgroups: usa-today.law From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: law Thu, Mar 19 1992 Date: Thu, 19 Mar 92 05:57:39 EST Message-ID: 03-19 0000 DECISIONLINE: Business Law USA TODAY Update March 19, 1992 Source: USA TODAY:Gannett National Information Network KEATING REFUSES TO TALK: Former savings and loan executive Charles Keating Jr. took the stand Wednesday in a civil suit brought against him by 17,000 investors, but refused to answer questions, citing Fifth Amendment right. The investors claim Keating, as head of American Continental and Lincoln Savings, defrauded them of $1.2 billion through the sale of worthless junk bonds. DINGELL QUESTIONS BILLS: Rep. John Dingell, D-Mich. has called a hearing for Thursday to look into questionable charges billed to the U.S. government by CH2M HILL for cleaning up toxic waste sites. The firm has billed the government at least $2.3 million for sports tickets, party refreshments, a reindeer suit and other "overhead" costs, Dingell says. The firm says taxpayers have paid only legal costs. AMEX TO DROP CONTINENTAL: The American Stock Exchange has agreed to take Continental Airlines' stock - which is worthless - off the market. Continental, trying to reorganize under Chapter 11 bankruptcy court protection, had asked the Amex to drop the stock six weeks ago, The New York Times said Wednesday. The Securities & Exchange Commission is reviewing the facts in the case. HELMSLEY SENTENCE REMAINS: Hotel queen Leona Helmsley was sentenced to four years in prison Wednesday for evading $1.7 million in taxes. Ironically, she will begin serving the time on tax day, April 15. The 71-year-old president of Helmsley Hotels, Inc. collapsed as she was lead from U.S. District Court where Judge Thomas Griesa refused to set aside her jail term. Her lawyer, Alan Dershowitz, is seeking a new trial. BCCI CONNECTIONS QUESTIONED: Sen. John Kerry, D-Mass., called for the resignation of James Lake, deputy manager of President Bush's re-election campaign, because of his ties to the Bank of Credit and Commerce International. Lake has done public relations work for BCCI's principal owner, the Abu Dhabi Investment Authority. BCCI recently agreed to pay $550 million to settle U.S. racketeering charges. COMEDY CLUB FILES CHAPTER 11: Jokes about the recession probably will not go over well at the New York comedy club Improv Inc., which has filed for Chapter 11 bankruptcy protection. President Silver Friedman says the 29-year old club is just another victim of the recession. Under Chapter 11, the club, which will remain open, is protected from creditors while it tries to work out a reorganization plan. SUIT FILED AGAINST BEG GROUP: Great Lakes Bancorp said Wednesday that it has filed a lawsuit in Federal District Court in Detroit against the BEG Group, a small group of Great Lakes shareholders. Great Lakes alleges that the group has violated the federal securities laws in connection with their actions relating to the bank's upcoming annual meeting. HUMPHREY SUPPORTS BELL CONTROLS: Minnesota Attorney General Hubert H. Humphrey III and other state regulators Wednesday told a congressional subcommittee that controls need to be adopted over the regional phone companies and they should not be allowed to expand into new businesses. Humphrey told the House Judiciary subcommittee on economic and commercial law that the quality of local phone service could be threatened. REGULATORS URGE RESTRICTIONS: State regulators Wednesday urged the House Judiciary subcommittee on economic and commercial law to enact restrictions on the regional Baby Bells that were first imposed by the court decree breaking up AT&T in 1982. Following a court ruling allowing them to do so, the Bells have moved to provide long distance and information services - which they were barred from in 1982. PRI REACHES AGREEMENT WITH SEC: Pharmaceutical Resources, Inc. announced Wednesday that it had reached an agreement with the Securities and Exchange Commission to conclude and settle the commission's investigation of PRI's subsidiary, Par Pharmaceutical, Inc. Under the agreement, PRI, without admitting or denying allegations, consented to the entry of an order enjoining it from future violations of securities laws. BEI TO PAY $10M IN STOCK CASE: Long-term health care company Beverly Enterprises Inc. in Fort Smith, Ark., said Wednesday it will pay $10 million to settle claims that the firm misled investors in 1987 and 1988 in an attempt to inflate the price of its common stock. The settlement needs the approval of the U.S. District Court in Los Angeles. POLLUTION SUIT SETTLED: Reynolds Metals Co. in Massena, N.Y., says it will not dump PCBs into the St. Lawrence River and will pay $420,000 to settle a 1988 pollution suit, state officials said Wednesday. Reynolds Metals admitted no wrongdoing. Business Law Editor: Jason P. Smith. (919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. This article is copyright 1992 Gannett News Service. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM