Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!tamsun.tamu.edu!mtecv2!americast.com!americast.com!usa-post From: usa-post@AmeriCast.Com Newsgroups: usa-today.law,americast.usa-today.law Subject: law Wed, Aug 26 1992 Message-ID: Date: 26 Aug 92 08:21:15 GMT Organization: American Cybercasting Lines: 116 Approved: usa-post@AmeriCast.com 08-26 0000 DECISIONLINE: Business Law USA TODAY Update Aug. 26, 1992 Source: USA TODAY:Gannett National Information Network FORMER ICC EMPLOYEE ARRESTED: A former Interstate Commerce Commission employee was arrested Tuesday for embezzlement and making false statements. The arrest was the result of seven months of investigation by the ICC's inspector general and the U.S. Postal Inspection Service. Donald M. Porter of Hyattsville, Md., was arrested based on an indictment handed down in Washington last Friday. BANK CITED FOR UNSAFE PRACTICES: The Federal Reserve Board Tuesday cited Colorado bank Thirty Second Avenue Corp. for unsafe and unsound banking practices. The bank, based in Wheat Ridge, is the parent of Citywide Bank of Applewood and Citywide Bank of Jefferson. The Fed said Thirty Second Avenue had a negative equity position and ordered the company to develop a plan for its subsidiaries. BANK MUST DEVELOP LOAN LOSS PLAN: The Federal Reserve Board Tuesday ordered Thirty Second Avenue Corp. to develop a plan to bolster the loan loss reserves of its subsidiary banks. The Fed also ordered the Wheat Ridge, Colo.-based bank to review the subsidiaries' internal loan review programs and look into "the volume of assets criticized and classified by federal or state examiners." TWA NEARS DEAL: TWA pilots have agreed to a buyout of the airline by employees and creditors, moving TWA closer to completing a reorganization that would bring it out of bankruptcy protection. All of TWA's major unions have agreed to the reorganization plan, but the airline is also in talks with the federal agency that guarantees workers' pensions. N.E. ELECTRIC LOSES SUIT: The Federal District Court in Boston ruled against New England Electric System Tuesday in a lawsuit over the allocation of costs for cleaning up manufactured gas waste in property in Lynn, Mass. The lawsuit was brought by the current owners of the Lynn property against NEES, subsidiaries Massachusetts Electric and New England Power Service Company, and Boston Gas. DORFMAN ACCUSED OF FALSE TALK: Daxor Corp. Tuesday said that Dan Dorfman, USA TODAY columnist and CNBC reporter, issued a report with false and misleading information. Dorfman said the Food and Drug Administration is questioning Daxor's use of a radioactive isotope in its blood volume analyzer and that the FDA has questioned its effectiveness. Dorfman cited short seller William Branston as his source. DAXOR WANTS PROOF FROM DORFMAN: Daxor said Dorfman was advised that his claim the FDA questioned a Daxor product that measures blood volume, as well as other statements, were untrue before he issued his report. Daxor said the FDA has approved use of a radioactive isotope and challenged Dorfman to prove what he said. COMPANY TO GET MONEY FROM IRS: Reading and Bates Corporation Tuesday said that it will receive a cash refund from the Internal Revenue Service for tax and accumulated interest totaling $14.2 million. The IRS' examination covered nine tax return periods beginning with the year ended Sept. 30, 1974 through the year ended Dec. 31, 1981. LA QUINTA APPEALS TO UNITHOLDERS: La Quinta Motor Inns Limited Partnership Tuesday released the text of a letter sent Monday to unitholders regarding Ronin Partners LP. Ronin wants to dissolve the partnership. La Quinta told unitholders they should not vote for what it says is Ronin's speculative proposal to dissolve the partnership. It urged unitholders who have questions to call 1-800-522-5001. SHELTON SEEKS TO CONTROL COMPANY: Shelton Financial Inc. said Tuesday it is seeking control of Skolniks Inc. Shelton, based in San Antonio, Texas, said it wants a change in Skolniks' board through a proxy contest or by acquiring securities from present board members. Shelton holds a 17.7% stake in the Louisville, Ky., restaurant and bagel franchiser. SEIBELS SAYS DEAL ONE-SIDED: The Seibels Bruce Group Inc. Tuesday said it was not involved in discussions over the unilateral decision by American States Insurance Company and Lincoln National Corporation to terminate the agreement and plan of merger with Seibels Bruce. American States cited losses to Seibels Bruce resulting from Hurricane Andrew as a reason for its decision. SYNERGEN RECEIVES PATENT: Synergen Inc. Tuesday announced that it has received a patent for the recombinant production of ciliary neurotrophic factor. The patent was issued Tuesday by the U.S. Patent and Trademark Office. Methods and materials used for producing recombinant CNTF are covered by the patent. BKA CONFIDENT IN ANTITRUST CASE: The German Cartel Office, or BKA, said Tuesday it is confident it will win a dispute against German banking association BvB. BvB said that BKA cannot prove alleged "misuse of a market-dominating position." The BKA argues that the banks in the banking association dominate the banking industry in and around Berlin and has started legal proceedings against the banks. Business Law Editor: Beth Mann. (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