Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.law,americast.usa-today.law From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: law Wed, Sep 30 1992 Date: Wed, 30 Sep 92 04:52:36 EDT Message-ID: 09-30 0000 DECISIONLINE: Business Law USA TODAY Update Sept. 30, 1992 Source: USA TODAY:Gannett National Information Network SALOMON COULD FACE PENALTIES: Salomon Bros. could still face penalties or charges of tax fraud despite a $290 million government settlement last May, a Treasury undersecretary said Tuesday. Jerome Powell told a House subcommittee that the settlement does not preclude potential adjustment to Salomon's tax liability. Nor does it preclude the assessment of penalties or charges of tax fraud. ACQUISITION PROPOSAL CHALLENGED: The Justice Department in court Tuesday challenged Electrovert U.S.A. Corp.'s acquisition of Hollis Automation. Justice said the merger would reduce competition in the high performance and mid-range wave soldering machine markets in the United States. Wave soldering machines are used to attach electronic components to printed circuit boards. MONEY MANAGER PLEADS GUILTY: Steven Wymer, a money manager charged with bilking clients out of $174 million, agreed Tuesday to plead guilty to federal criminal charges and was ordered to pay about $209 million to settle civil charges, the Securities and Exchange Commission says. Wymer, a southern California financial adviser, managed funds for more than 100 clients, mostly local and government agencies. BEST GETS EXTENSION: Best Products Co. Inc., the Richmond, Va.-based discount retail chain that has been operating under Chapter 11 bankruptcy protection since January 1991, will have until February 1 to file a reorganization plan, Bloomberg Business News said Tuesday. Federal Bankruptcy Court Judge Tina L. Brozman Tuesday granted Best a four-month extension on the deadline, which was to expire Wednesday. TREASURY RELEASES AUCTION PLAN: The Treasury Tuesday released a proposed uniform set of rules for its auctions of bills, notes and bonds to replace scattered rules and regulations. The government said the Treasury thought the move would minimize regulatory burdens. Proposed revisions to the rules appear in the Federal Register Wednesday and viewers will have 30 days to decide on changes. OTS PRINTS RECEIVERSHIP RULES: The Office of Thrift Supervision Tuesday published final information that outlines steps federal regulators will take when a savings institution becomes undercapitalized. The rules for prompt correct action require regulators to put the institution in receivership or conservatorship if its ratio of tangible equity to total assets is 2% or less. COURT OKS FUND DISTRIBUTION: A federal court Tuesday approved plans to distribute more than $56 million in funds forfeited by Ivan Boesky, Martin Siegel and Kidder Peabody & Co. in the Securities and Exchange Commission's insider trading case, the SEC said. The plan calls for distribution of funds to the defrauded investors and others. The original suit against Ivan Boesky was filed in 1986. RTC CLOSES FIRST CASES: After four years of operation, the Resolution Trust Corp. Tuesday closed the books on a group of seized thrifts. The largest of the 27 savings and loans include the First Savings Association of Bismarck, N.D.; First Garland Federal Savings and Loan Association of Garland, Texas; and Sioux Valley Savings and Loan Association of Cherokee, Iowa. SENATE APPROVES BOND BILL: The Senate on Tuesday voted to approve its version of a bill passed by the House. The bill allows states and localities to resume issuing tax-exempt mortgage revenue bonds and small issue industrial development bonds. President Bush has threatened a veto. State and local governments had to stop issuing the bonds June 30. Legislation extending authority was not enacted before deadline. IRS CHASES DEADBEATS: The Internal Revenue Service is pulling more than 2,000 agents off their normal job of auditing taxpayers to pursue up to 10 million individuals and businesses that don't even bother filing returns. The IRS estimates the non-filers are cheating the government of at least $7 billion a year. Part of the bargain: Non-filers must stay in the system, the IRS says. MOBIL REFUTES STATEMENTS: Mobil Oil Corp. Tuesday said recent statements by the Service Station Dealers of America were irresponsible. The statements were in relation to Mobil's opposition to a Senate bill. Mobil said the bill is not about jobs but is special interest legislation "at the expense of the public." SDDA said Mobil cut its dealer-operated stations by 43%. Mobil said the number of stations increased. TITANIC SALVAGE IS CONTESTED: Two rival groups are asking a Norfolk, Va., federal judge to grant salvage rights to the Titanic luxury liner. Marex-Titanic of Memphis, headed by Texas oilman Jack Grimm, wants sole ownership of the rights. It contends Connecticut-based Titanic Ventures abandoned its claim after bringing up 1,800 artifacts from the wreck in 1987. The hearing continues Wednesday. BUNGEE RULES ARE LOOSENED: Florida loosened proposed restrictions on bungee-jumping Tuesday and softened a mandatory warning sign that included a bungee cord snapping, a person falling and a wheelchair. Interim rules had halted the sport. Business Law Editor: Beth Mann. (919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. 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