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 24 1992 Date: Fri, 24 Apr 92 05:26:46 EDT Message-ID: 04-24 0000 DECISIONLINE: Business Law USA TODAY Update April 24-26, 1992 Source: USA TODAY:Gannett National Information Network SEC SUES COLLEGE BOUND: The Securities and Exchange Commission Thursday filed a lawsuit against test preparation service company College Bound, alleging it overstated its financial results in last year's third and fourth quarters. The lawsuit is also targeting Chairman and CEO George Ronkin and his wife, President Janet Ronkin. Monday, the SEC suspended College Bound stock from trading for 10 days. RACKETEERING TRIAL BEGINS: Former Navajo tribal chairman Peter MacDonald's racketeering trial began Thursday. In opening arguments, assistant U.S. Attorney Fred Petti said MacDonald took bribes and kickbacks from computer company Navajo Technologies Inc., which was doing business on the reservation, in return for a $2.25 million loan from the tribe. He faces 32 counts of racketeering and other charges. MIDWAY AUCTION ENDS FRIDAY: Bankrupt Midway Airlines is being sold in pieces during a three-day auction that ends Friday in Chicago. The airline that was once No. 12 in the USA was forced from bankruptcy reorganization into liquidation in November after Northwest Airlines backed out of a plan to buy it. Proceeds from the sale - expected to be about $2 million - will go to creditors. TRUSTEE CALLS SALE `VERY SAD': Bankruptcy trustee Sheldon Solow, commenting on the auction of Midway airline's assets, said, "It's very sad. This is a very unfortunate thing, both for the city, because it was an important economic enterprise, and for the employees - as well as the creditors." Solow said that the liquidation will probably not be complete for another year due to lawsuits and other legal matters. UNION WANTS CONTEMPT CHARGES: Doctors Council, a union representing 3,000 New York City doctors, filed an application Thursday to hold the city and several officials, including Mayor David Dinkins, in contempt of court for cutting funding to the School Health Program. A 1991 court order mandated that funding be maintained at existing levels. The program provides health services to city school students. LABOR DEPT. SUES BURGER KING: Burger King instructed managers to remove labor records from restaurants last month during a Labor Department crackdown on child labor law violations, according to court papers. The Labor Department filed a lawsuit against Burger King in March, claiming it instructed managers to take all labor manuals out of restaurants. BK says the instruction was taken out of context. OBSCENITY CHARGES FILED: Following an unofficial sting operation, Omaha prosecutors have filed obscenity charges against five record stores for selling the 2 Live Crew album "Sports Weekend." On April 11, City Council member Steve Exon and the anti-pornography group Omaha for Decency sent four teen-agers into stores to buy the album. 2 Live Crew leader Luther Campbell vowed to fight the charges. STOCK DOWN ON LAWSUIT NEWS: Stock in Teledyne fell Thursday on reports that the Justice Department is joining a civil lawsuit alleging the company falsified test results for its electronic relay switches. A federal False Claims Act lawsuit unsealed Wednesday seeks damages of $250 million, but under provisions of the act, an additional $750 million in penalties could be added. SIERRA CLUB ASKS FOR PROBE: The Sierra Club Thursday asked the Federal Trade Commission to investigate what it calls oil companies' "misleading and deceptive" advertising claims in connection with oil recycling. The environmental group claims Amoco, Mobil and Exxon are deceiving customers into thinking their used motor oil is being recycled in an environmentally safe manner when it actually is being burned. PREVAILING WAGES MUST BE PAID: Firms doing public-improvements work must pay prevailing wages even if wages aren't mentioned in contracts, the Ohio Supreme Court ruled. Cited in the ruling was the argument that allowing the firms to pay lower salaries undercuts Ohio law. SMOKERS' RIGHTS BILL CONSIDERED: The Vermont Senate Judiciary Committee considered a bill on smokers' rights Thursday. The Senate General Affairs panel on Tuesday approved a bill that would prohibit employers from making hiring decisions based on lawful activities that people do away from job. COLINO MUST PAY $25.8 MILLION: Richard Colino, Intelsat director general from 1983 to 1986, has been ordered to pay Intelsat $25.8 million in damages by the U.S. District Court. Colino was convicted of defrauding Intelsat through a kickback plan involving construction companies. Colino has already served three years in prison for fraud. 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