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 Fri, Apr 10 1992 Date: Fri, 10 Apr 92 05:43:42 EDT Message-ID: 04-10 0000 DECISIONLINE: Business Law USA TODAY Update April 10-12, 1992 Source: USA TODAY:Gannett National Information Network SEC TO VOTE ON RULES: In an effort to crack down on fraud in the penny-stock market, the Securities and Exchange Commission will vote Friday on rules that would give investors a better idea about the risks of investing in such stocks. Penny stocksare highly speculative shares that generally sell for less than $1. PLAN CAUSES CONCERN: A plan to be voted on by the Securities and Exchange Commission Friday, while intended to protect investors against market manipulation and other fraud, has raised concerns among brokerage firms and small companies. They warned that the SEC plan, issued last spring, could shut out small businesses from the stock market at a time when they are hard-pressed for capital. JUDGE MAY END STRIKE: A judge in Pittsburgh may decide Friday on whether to force 2,700 bus and trolley drivers to end a strike that began March 16. Workers can be forced back if the strike is found to pose a threat to public welfare. Transit officials are concerned that the judge will order binding arbitration with conditions they term too expensive for the county. FORT WORTH SUES TO STOP CHANGE: The city of Fort Worth Thursday filed suit to keep Dallas from asking Congress to amend the Wright Amendment, which limits commercial flights at Love Field to a five-state region. Dallas wants the restriction lifted. Fort Worth fears the action would affect traffic at the Dallas-Fort Worth International airport, which handles flights outside the restricted area. FRAUD TO COST $70 BILLION: Medical quackery and fraud will cost patients, insurance companies and taxpayers $70 billion this year, says a Congressional staff report out Thursday. The biggest problem is no coordinated effort among the Food and Drug Administration, Justice Department, health insurance companies and other law enforcement agencies to catch the crooks, says Rep. Ron Wyden, D-Ore. MORE INVESTIGATORS NEEDED: According to a Congressional staff report out Thursday, a network set up to crack down on medical fraud needs more investigators. In October, the FDA began a health fraud information network among state and local law enforcement agencies and others. But FDA's Gerald Vince agreed the agency could use 25% to 50% more criminal investigators. EXPENSES CALLED MORALE BOOSTERS: Federal auditors, testifying before a House government Operations subcommittee Thursday, said EPA contractors justified exorbitant expenses billed to the agency for hazardous waste cleanup as employee morale boosters. Items included $115,004 for a company Christmas party, $4,093 in Rolex watches, $3,488 worth of Houston Astros baseball tickets and beach house rentals. HELMSLEY GETS FAST APPEAL: A New York federal appeals court Thursday granted Leona Helmsley, 71, an expedited appeal of her four-year prison sentence for cheating on her taxes. A hearing is scheduled for Tuesday, one day before she is to report to prison to begin serving her sentence. GOVERNOR GOES BEFORE GRAND JURY: Former Kentucky Gov. Wallace Wilkinson testified before a Louisville federal grand jury Thursday that is investigating accusations of state government corruption. Wilkinson would say only that he answered all questions fully and that he was not a target of the probe. Authorities have issued for more than 30 subpoenas regarding questions on racing and banking legislation. TAX SCAMS COSTING USA $38B: Foreign tax scams in the USA are costing the government up to $38 billion a year, lawmakers said Thursday. The Internal Revenue Service is being criticized by Congress for not cracking down more on foreign tax fraud. IRS Commissioner Shirley Peterson told Congress Thursday that only 28% of foreign firms in the USA paid U.S. taxes in 1989, the latest year data is available. DAMAGE CLAIM REDUCED: Talley Industries Inc. announced Thursday that an arbitration panel reduced a $34 million damage claim by TRW Inc. against the company to $5.1 million. The arbitration proceeding dealt with the designed plant capacity of Talley's automotive air bag facility sold to TRW in 1989. SECOR BANK SUES GOVERNMENT: Secor Bank Thursday announced that it has filed suit in the U.S. Claims Court in Washington, D.C. against the USA, claiming that the Federal Government breached a contract with Secor to treat supervisory goodwill as regulatory capital. Secor seeks specific damages of "not less than $40 million," for breach of contract regarding the acquisition of two insolvent thrifts. 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