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Subject: law Wed, Oct 21 1992
Date: Wed, 21 Oct 92 04:30:09 EDT
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10-21 0000
DECISIONLINE: Business Law
USA TODAY Update
Oct. 21, 1992
Source: USA TODAY:Gannett National Information Network
    
PAIR GUILTY OF INSIDER TRADING:
   Christopher Garvey and Darrin Gleeman, both 26, Tuesday pleaded 
guilty to federal charges of insider trading using information 
from the law firm of Skadden, Arps, Slate, Meagher & Flom where 
Garvey had worked as a paralegal. Both pleaded guilty to 
conspiracy to commit securities fraud. Gleeman and his father 
allegedly set up offshore accounts to trade based on information 
from Garvey.
    
LOCKHEED GETS NAVY CONTRACT:
   Lockheed Sanders Tuesday was awarded a $4 million U.S. Navy 
contract to produce a Logistics Support Analysis system for the 
ALQ-149 Command and Control Countermeasures system. Lockheed will 
develop logistics analysis, design assurance and test engineering 
to support and maintain the ALQ-149 when it is delivered to the 
Navy.
    
AT&T GETS PHONE CONTRACT:
   AT&T Tuesday said it has received a contract for $44.7 million 
from Guatemala's national telecommunications company, Empresa 
Guatemalteca de Telecomunicaciones (Guatel). AT&T will 
manufacture, install and test copper and fiber-optic 
communications lines and to supply the AT&T 5ESS, a digital switch 
that can handle 600,000 calls per hour, according to Bloomberg 
Business News.
    
LITTLE COLLECTED IN BANK FRAUD:
   The federal government has collected just 4.5% of the fines and 
restitutions ordered in cases of major bank and thrift fraud, the 
General Accounting Office said Tuesday. The Department of Justice 
has said that in most cases there is little or nothing to collect 
when sentencing occurs. The nation's courts ordered $846.7 million 
of fines and restitutions from October 1988 to July 1992.
    
ORION ALLOWED TO REORGANIZE:
   A federal bankruptcy judge Tuesday confirmed Orion Pictures 
Corp.'s plan of reorganization. That confirmation will let the 
movie company go ahead with trying to emerge from bankruptcy. 
Majority shareholder Metromedia Co., will invest $15 million in 
Orion in exchange for a 50.1% equity stake in the reorganized 
company responsible for the hit film "The Silence of the Lambs."
    
CATHETERS PROVOKE PATENT SUIT:
   Schneider Inc. Tuesday said it has served a patent infringement 
suit against Cordis Corp. of Miami Lakes, Fla. Schneider, a unit 
of Pfizer Inc.'s hospital products group, alleges that Cordis' 
lines of soft-tipped vascular diagnostic catheters and soft-tipped 
vascular guiding catheters infringe on a 1985 patent. Officials at 
Cordis could not be reached for comment.
    
HASBRO SUES OVER PUPPY TOY:
   Hasbro Inc. has sued Remco Toys Inc. for illegally copying 
Hasbro's popular "Puppy Surprise" toy. The toy dog comes with a 
Velcro pouch in its belly that contains puppies. The suit filed in 
New York federal district court is over Remco's "Princess and Her 
puppies," a stuffed dog that features puppies in a stomach pouch. 
Hasbro seeks a temporary restraining order.
    
BANK FRAUD PROBE DROPPED:
   The U.K. Serious Fraud Office Tuesday dropped its investigation 
into allegations of corruption by Bank of England officials over 
the collapse last year of the Bank of Credit and Commerce 
International. The five-month joint inquiry with the City of 
London police "revealed no evidence" that central bank officials 
did anything wrong, according to a statement.
    
REPAIR SHOP OWNER CHARGED:
   The owner of a San Francisco auto repair shop was ordered 
Tuesday to close his doors by Nov. 20 for violations of state law 
that include defrauding customers. The director of the California 
Department of Consumer Affairs charged Charles Broderick, the 
owner of Geary Safety Center, with violations after an 
investigation by the California Bureau of Automotive Repair, part 
of the DCA.
    
UTILITY ORDERED TO SHOW CAUSE:
   The Consumers Power Company, based in Detroit, is the second 
public utility in a week to be ordered by a Wayne County circuit 
judge to show cause why it should not be forced to stop making 
political contributions using ratepayer funds. The utility has 
been ordered to appear in court Thursday to answer a complaint 
filed by six customers who object to the funneling of rate 
payments.
    
IRS GOES TO HOLLYWOOD:
   The Internal Revenue Service says it is setting up a special 
unit to look into taxes paid by Hollywood's entertainment 
business. A team of 36 IRS agents and auditors will look at the 
use of independent contractors and the establishment of affiliates 
in countries that are tax havens, among other issues. Analysts say 
those likely to be hurt are smaller companies, not big studios.
    
AOI COAL ACQUIRES ASSETS:
   AOI Coal Tuesday announced that its Grand Valley Coal Co. has 
acquired substantially all of the assets of the Salt Creek Mining 
Co. of Colorado, according to Bloomberg Business News. AOI said 
it's positioning itself for when clean air regulations take 
effect, since no market exists for the 100 million tons of 
cleaner-burning coal the company receives from the transaction.
    
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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