Arizona Republic from Phoenix, Arizona • Page 14

FINAL 1 7g Arifwm RrpuMtc HturxW, I trniry Htt ECONOMIC INDICATOR The Index of licooamic Indicators Investors file $97 million suit, allege fraud by mortgage-banking business tracks a weighted, seauHully adjusted Economy on seesaw termed a precursor to slow, level growth set of economic slJlulict. the attorney general's suit, which accuses Sasak of using investors' money to pay generous commissions to himself and to buy expensive homes for relatives. fees for supposed mortgge-brtker services which were never performed or which, if rendered, did nol justify the fees paid," the suit alleges. Similar evcusatkms arc lodged in By John WinUrt The Ai uune HvpuUc Investors in a Thoenix mortgage-hanking firm have filed a' $97 million class-action tun against the business in S. District Court, claiming the company defrauded them in the sale of limited partnerships.

Named as defendants in the suit, filed in riioenix on Tuesday, are Avanti Associates First Mortgage The Great Interest CD's und 84 Limited Partnership and several related companies hearing the 1 Avanti name. Also named as defen 0. dants are several securities dealers JFMAUJ JASONO $oui BwmuoI Eoonotrac AnVfcl who offered the limited partnerships 9,0 to tnvestorv 1IW AiuCWftopuUC The Arizona attorney general's office filed suit in May against Avanti, accusing it of one of the largest mortgage-banking frauds in Arizona history. The attorney general's office CONSTRUCTION SPENDING Spending on U.S. building activity reflects an annual rate adjusted for seasonal variation.

estimates that the 4.UI0 investors lost 3 million in the scheme. They were offered shares in limited partnerships that were designed to By Nancy Oanae In AtMCMted Pim WASHINGTON The govern-men! on WVJiicvIjv rrparU'J thai in thief economic-forecasting gauge poMcd a Mrong 0.6 percent gain in December, coniinuing a mtmw pattern that tome aiiitlyMt ud indicate ilucr growth in IW. Trie ludek ttf I railing economic Imiicaiore ha reverted course in caih of the last nine nionOit, showing little momentum. December' increac left the inde at 194 6 percent of it l7 base of 100, up a dun 2 percent from the inie month a year earlier. IVontunists welcomed the continued vacillation as a prcvurvir to slower, more sustainable growth during the economic expansion' seventh year, saying restraint would help loop inflation in check without threatening a serious downturn.

"The economy is going a he slowing down but there is no recession on the horion," said David Wyss, an economist with Data Resources Inc. in Lexington. Mass. Wyss said that by the middle of next year, growth would slow enough for the Federal Reserve Hoard to case its tight grip on the money supply. Since March, the central bank has been pushing up interest rates to dampen inflationary pressure and slow economic growth.

Samuel D. Kalian, chief economist for Klein wort Benson Government Securities Inc. in said the report's saw-toothed performance "tells you that there is not a boom building. It suggests maybe somewhat slower growth in the next couple of quarters but it most assuredly doc not point to any kind of a recession." The economy grew a robust 3 8 percent in hut the slowest quarterly performance in two yean was recorded during the (Xtohcr De ccniber period, when the increase in the gross national product was held to an annual rate of 2 percent. In another economic report released Wednesday by the Commerce IX'partmcnt.

construction spending shot up 2.5 percent in December to end a weak year on a strong note. Construction spending for all of Wt totaled S40J.4 billion, up just 1.1 percent from 1987. Taking inflation into account, spending actually was down 0.4 percent. It was the slowest performance since the recession year of 1982. lxonomist James Amiable of first National Hank of Chicago said that while the finish of 1988 was surprisingly strong, construction spending is likely to slacken this year as rising interest rates take their toll.

IXtember's increase in the leading index was bolstered by positive movement in six of nine available components. The biggest boost came from an increase in manufacturers' orders for consumer goods. Other positive business barometers were: rising stock prices, more orders for new plants and equipment, rising prices for raw materials signaling a strong demand, increased demand for business permits and growth in the inflation-adjusted money supply. The two indicators that made a make, and invest in, mortgage bans. The investors claim in the federal suit that the defendants "engaged in acts, practices and course of business RATE YltlD 9,00 9.31 8.80 9.10 8.60 8.89 $2300 minimum account balance maximum $UKKX Substantial penalty li raity withdrawal.

Imrirst compounded quaiteily Subject to certain let mi and rondliioni which operated as a fraud upon the investors and knowingly conspired to 1.5 0 1.5 3 bring securities on the market which were not entitled to be marketed." Avanti Associates consisted of several "blind-pool mortgage funds, JFMAHJJASONO Sourer Comment Department which sold securities to investors without disclosing to them what loans would be made or invested in, the suit states. It accuses Timothy Sasak, principal operator of the companies, of using Ari7xna Commerce Bank now offers pu three Certificates of Deposit that earn high interest on your money, with the full security of FDIC protection. Call, or visit any Arizona Commerce Bank office, and open your CD today. They're drawing some great interest. Limited time offer! The Aruont Republic negative contribution were a shortening in the length of the average work week and an increase in weekly unemployment claims.

One indicator, the time needed for companies to receive deliveries from vendors, was unchanged. investors money for his own benefit and for the benefit of those who assisted him. "Sasak obtained kickbacks from a relative and affiliate through excessive Wisconsin company acquires Metropolitan Bank strength and experience of an $8 bil lion parent," Musccnti said. A Firstar subsidiary, First Wisconsin Trust realized that a number of its Midwestern customers had retired to this area, Musccnti said. Metropolitan will continue as a commercial bank but will also provide Metropolitan averaged $55 million in assets last year and 'remained profitable, Musccnti said.

ARIZONA COMMERCE BANK Your Financial Power Source. MEMBER FDIC Christown Office, 5649 North 19th Avenue, 219-4630 Camciback Office, 2222 East Camclback Road, 957-7110 Mesa Regional Office, 1220 South Alma School Road, 827-0000 trust services. By AlanThurber The Arizona Republic Metropolitan Rank of Phoenix has been acquired by Firstar Corp. of Wisconsin, the largest bank-holding company in that state. Terms of the transaction, which involved the purchase of Metro Rancorp the bank's parent firm, were not disclosed.

Paul Muscehti will remain as president and chief executive of Metropolitan Rank, which will continue to operate under that name from its two offices, at Central Avenue and Van Rurcn Street and at 24th Street and Missouri Avenue. Firstar owns 37 banks, with combined assets of S8 billion, in Wisconsin, Illinois, Minnesota and now Arizona. There is also a trust company in Florida. "It was not our intention to sell the bank, either when it was organized in 1983 or since," Musccnti said. "In fact, we tried to acquire other banks." The Wisconsin organization, however, "made an offer we couldn't refuse," he said.

The name eventually will be changed to Firstar Metropolitan Bank Trust, he said. Additional office locations, with Sun City a probable WE ACCEPT SELF EMPLOYED, first, are on the drawing board. CREDIT PROBLEMS AND PRIOR BANKRUPTCY Marlin Financial 074 QfCf Corp. MB5354 Of I'OUOU "We'll stay the same as we were, adding the trust services and the HUGH MITES. MSORED SAFETY UMTS 'OEESIGHX Rate Annual Yield 30 Day 7.75 7.97 ($100,000 Min.) 3 Month 8.75 9.04 ($100,000 Min.) 6 Month 9.00 9.30 ($100,000 Min.) For information on certificate of deposit rates, call our Savings Rate Hotline at (602) 230-6130.

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