The Los Angeles Times du lieu suivant : Los Angeles, California • Page 252

I I.OS ANGI'XES TIMES D2 SATURDAY. AUGUST 1. 1992 ORANGE COUNTY BUSINESS BRIEFLY Shiley to Compensate Spouses of Valve Patients ORANGE COUNTY anywhere. Their outlook on life is different. That has an impact on a spouse's life." The lawsuits filed by Capretz's clients are expected to come to trial in Orange County Superior Court in Santa Ana later this year unless the recipients decide to accept the offer.

Capretz said he doubts that 24 of his clients who are California residents will drop their emotional-distress suits, even if the settlement offer is approved. His other clients, including 235 in other states and 55 outside the United States, could be limited by a recent state Supreme Court decision. In June, the justices let stand a lower court ruling that out-of-state residents could be prevented from pursuing their cases in Medicine: The maker of device sets aside $10 million By TED JOHNSON SPECIAL TO THE TIMES IRVINE Shiley manufacturer of a potentially defective heart valve, has agreed to set up a $10-million fund to compensate spouses of recipients of the device, the company and a plaintiff's attorney said Friday. The new fund, added recently to a proposed settlement awaiting approval by a federal judge in Cincinnati, is designed to compensate husbands and wives of valve recipients and can be used at their discretion, said Robert Fauteux, a spokesman for Shiley Inc. in U.S.

District Judge S. Arthur Spiegel is reviewing the two companies' offer to pay $75 million for research and valve replacement surgery, and another $80 million to $130 million for physician consultations and anxiety-related medical expenses. Another $300 million would be set aside for patient or survivor claims. Until recently, however, the offer did not include a fund for spouses. The amount given to each spouse will be based on how many decide to join the settlement offer, said James Capretz, an Irvine lawyer representing 314 valve recipients and 207 spouses.

He said one estimate placed it at $1,000 for each spouse. The spouses' lives have been changed, Capretz said. "In many cases, the implantees won't travel Freedom Newspapers Buys Fullerton Weekly: Freedom Newspapers publisher of the Orange County Register, said Friday that it has purchased the Fullerton News Tribune. The sale price was not disclosed. Freedom said the Fullerton weekly will be published through its Golden West Publishing division and will join its network of seven community weeklies in northern Orange County.

The newspaper was bought from Southern California Community Newspapers in South Gate, which publishes 32 community newspapers in the Los Angeles area, including the Buena Park News and the CypressLa Palma News. The transaction becomes effective on Thursday. Former Keating Aide Expected to Change Plea: Judy Wischer, who pleaded guilty to federal fraud and agreed to testify against former boss Charles Keating is expected to enter a similar plea bargain in state court, a prosecutor said Friday. Wischer is one of several Keating aides and relatives to acknowledge crimes connected with the collapse of Keating's Lincoln Savings. She had been due in Los Angeles Superior Court Monday for trial-setting on state charges of duping small investors into buying risky bonds.

Deputy Dist. Atty. Paul Turley, one of the prosecutors who convicted Keating in state court, said Wischer is due back before Superior Court Judge Lance A. Ito on Sept. 1 to change her innocent plea.

She won't be sentenced until after the federal case against Keating ends. Wischer, 43, of Paradise Valley, pleaded guilty in May to two federal counts of bank fraud and one of securities fraud. The charges carry a maximum 15-year prison term. She was a director of Irvine-based Lincoln and president of its parent, Keating-owned American Continental Corp. of Phoenix.

Mixed Reports in June Indicate Shaky Recovery the discontinued heart to offset emotional distress. "It's another fund that we have set aside, along with a fund for valve recipients, so that we can relieve any of their concerns," Fauteux said. About 55,000 patients worldwide have had Shiley's convexo-concave valves implanted, and the valves have fractured in more than 350 recipients. The fractures in which a strut holding the device together pulls apart have caused about 250 deaths. Hundreds of patients with working valves as well their spouses have sued Shiley and its parent company, Pfizer Inc.

of New York, alleging emotional distress because of anxiety about the device's safety. Shiley stopped selling the valves in 1986. Personal Income Trillions of dollars, seasonally adjusted annual rate JASONDJFMAMJ 1991 1992 Source: Commerce Department AI Los Angeles Times years. Sales of new homes jumped in June, helped by the lowest mortgage rates in decades. Yet tight-fisted consumers, and sluggish overseas economies combined to slpw U.S.

economic growth to an annual rate of just 1.4 in the second quarter, con- i Jun8 '92: 502 1 4" 1 I May, '92: 5.03 4775 i Jun6' '91: 4'83 MEDIA ENTERTAINMENT Paramount to Buy Theme Parks: Paramount Communications Inc. announced plans to enter the theme park business, saying it will buy four parks operated by Kings Entertainment Co. for about $400 million. The entertainment giant expects the parks to add at least $250 million to its annual revenue. Last year, Paramount took in $3.9 billion.

Paramount plans to use the parks as a base for expanding into the theme park business. It also will promote its own products and services, including movies and the live entertainment it offers through New York's Madison Square Garden, at the parks. Paramount stock tumbled $1,625 to AUTOS Personal Spending Trillions of dollars, seasonally adjusted annual rate ASONO A 1991 1992 Source: Commerce Department AIJ i.os Angeles Times trasted with 2.9 in the first quarter. "It looks like we have enough positive factors in place for a recovery, but the person on Main Street may not feel much better-particularly since a weak recovery doesn't do much for the jobs mar- 4.10 til June, '92: 4.07 -1 385 111 May- '92: 4-05 1 3i June, '91: 3.89 House OKs Tenfold Hike In Mlnlvan Tariffs: The House has voted to increase tariffs on imported minivans tenfold despite arguments that the action would raise prices of U.S.-made multipurpose vehicles. The tariff bill was approved 273 to 112 and sent to the Senate.

The Bush Administration has threatened to veto it. The legislation would extend the 25 tariff now paid on imported trucks to sport-utility trucks, vans and minivans. It would boost the price of a Japanese-made minivan by up to $3,700. If Japan then chose to stop or limit exports, domestic prices could rise because of lack of competition. Foes also say the bill constitutes Japan-bashing because European models such as the British Range Rover and Germany's Volkswagen van are exempt.

AEROSPACE Economy: Factory orders rose 2.3, but personal income was flat and consumer spending edged up only 0.5. From Reuters WASHINGTON Factory orders climbed in June, boosted by demand for big-ticket items, but personal income was flat, forcing consumers to dig into their savings to produce a modest spending rise, the government said Economists said the reports back the view that the recovery continues to lurch along and that consumers are unlikely to give the economy a big shot in the arm. The 2.3 rise in orders received by the nation's factories in June was the biggest in nearly a year and brought orders to a seasonally adjusted $244.21 billion, the Commerce Department said. It was the fifth increase in six months and reflected greater demand for aircraft, industrial machinery, metals and a broad array of other products. The rise followed a drop of 0.9 in May and a 1.3 rise in April.

But income from wages, salaries and other sources like rent and interest was unchanged in June at a seasonally adjusted annual rate of $5 trillion after rising 0.3 in May and 0.1 in April. The figure reflected a weak labor market, lower interest income from savings deposits and lower farm income, said economists. Meanwhile, spending rose 0.5 in June to a seasonally adjusted annual rate of $4.1 trillion, after rising 0.3 in May and 0.2 in April. Consumer spending accounts for about two-thirds of economic activity. "The numbers are consistent with a weak and uneven recovery.

We're growing, but it's barely more than a crawl," said David Jones, Aubrey G. Lanston chief economist. The reports add to the conflicting signals now emerging. The government said Thursday the number of people applying for jobless benefits fell in the latest week to the lowest level in lVfe Factory Orders Total new orders in billions of dollars, seasonally adjusted 250 0 HUH JASOND JFMAMJ 1991 1992 Source: Commerce Department AI'Los AngeleH Times ket," said Jones. The factory orders data showed pockets of strength scattered around the economy that should help growth in the next few months.

Orders for transportation equipment advanced 2 in June. ENERGY Continued from Dl By next year, homeowners would receive tax benefits for the rebates they receive from utilities for such improvements as energy-efficient water heaters and heavier insulation. Currently, the Internal Revenue Service considers these rebates to be taxable income. The bill would also provide tax incentives for people buying alternative-fuel automobiles and who use mass transit and ride-sharing options for getting to work. Perhaps the least-known aspect of the bill involves an innovative home mortgage concept.

Designed to encourage energy efficiency in housing, it would help establish a national rating system for homes. Something like the mileage ratings on new automobiles, homes would be rated for insulation, heating and cooling systems, and other attributes that affect energy use. Mortgage lenders could make bigger loans to homeowners with energy-efficient houses because their monthly utility expenses wouldbe lower. 220iSl June, '92: 244.2 Jll May, '92: 238.7 June, '91: 229.2 Lockheed Missiles to Cut 850 More: Lockheed Missiles Space confronting cuts in the defense budget, said it will eliminate 850 more jobs by year-end, adding to the 1,560 it already has cut this year. The Sunnyvale-based company, the biggest unit of Calabasas-based Lockheed said 708 of the jobs eliminated so far were through layoffs, the other 852 through retirements and normal attrition.

John McMahon, president of the Missiles and Space operation, said the company is offering incentives to 3,200 of its salaried employees to take early retirement. The company has 23,387 employees nationwide. From Times Staff and Wire Reports EARNINGS Key Consumer Points in Energy Bill Utility Rebates: Consumers who receive utility company rebates for improving the energy efficiency of their homes would no longer have to pay income tax on those rebates. Mass Transit: Commuters would get a better tax break for using mass transit. Employers could subsidize workers' transportation costs up to $60 a month up from $21 without employees having to pay taxes on the subsidy.

Employee Parking: To encourage use of mass transit and car pooling, the House would put a non-taxable cap of $160 (the Senate version sets a $145 cap) on the value of "free parking" that businesses provide for employees. For example, if the value of a downtown parking space is $190 a month, and the employer subsidizes this parking, the employee would have to pay federal income taxes on $30 of that amount under the House version. Alternative Fuel Automobiles: Consumers would get tax deductions of up to $2,000 for buying vehicles that run on electricity, natural gas, methanol and other alternative fuels. Alternative Energy: Tax credits for wind, solar and other electric power from renewable sources would be made permanent rather than subject to annual review by Congress. Energy Efficient Homes: Much as refrigerators and hot-water heaters now carry energy efficiency ratings, homes would be similarly rated.

Home buyers might qualify for special mortgage loans that take energy efficiency into account. For example, a mortgage lender might be able to qualify you for a larger loan if you buy a well-insulated house that would reduce future utility bills. DEFENSE and liabilities associated with Olympia York Developments Ltd. The insurance company said it lost $20 million, or 18 cents a share, in the three months ended June 30, contrasted with net income of $160 million, or $1.44 a share, a year earlier. The loss came after an after-tax charge of $96 million, or 87 cents a share, for a company-wide reorganization that will cut 4,800 jobs by the end of next year.

Aetna also took a $30-million after-tax charge in the quarter related to a financial guarantee to Olympia York bondholders. The company said it added $105 million to reserves for mortgage loans and real estate write-downs in the quarter, compared with $78 million a year earlier. The results also include net realized capital losses of $41 million. executives, prosecutors said. Many of those who lost money were elderly and of limited means.

Prosecutors said McCord was Capital's leading salesman, generating $3.5 million in business between 1984 and 1987 and earning about $240,000 in commissions. The only one of five defendants to take his case to trial, he was convicted by a jury on June 15 on eight counts of fraud and one count of falsifying his income-tax return. Harvey took in about $600,000, of which $108,000 was embezzled from client accounts and diverted to a secret bank account, Isaacs said. Harvey had pleaded guilty to two fraud counts and testified against McCord as part of his plea bargain. A saleswoman, Dorthea Tom-czyk, 37, of Garden Grove, pleaded guilty two years ago to one count of wire fraud.

Letts sentenced her Monday to six months in jail 'and 4V years of probation, and ordered her to pay $20,234 in restitution. Capital Trust's former owner, Richard O. Kelly is scheduled to be sentenced Sept. 8 on his guilty pleas to three counts of mail fraud and one count of wire fraud. Kelly, 58, now a mortgage broker in Phoenix, agreed in April to repay $2.9 million that he embezzled from clients.

Isaacs said Kelly has been making payments but would not reveal the amount paid so far. CommerceBnncorp: The Newport Beach parent company of CommerceBank reported a second-quarter profit of $53,000, or 2 cents a share, compared with $237,000, or 10 cents a share, for the same period in 1991. Earnings for the first half dropped to $285,000, or 13 cents a share, from $848,000, or 35 cents a share. As of June 30, assets totaled $306.6 million, down 7 from $330.5 million a year earlier. The company said its earnings continue to be affected by weak economic conditions, which have resulted in lower interest margins, as well as high expenses related to non -performing assets and a decrease in the amount of loans outstanding.

Aetna Life disunity Co. reported its first quarterly loss since 1984 because of after-tax charges of $126 million for job cuts SENTENCE Continued from Dl ant U.S. attorney who prosecuted the case. McCord's term, he said, "is one of the larger sentences for a telemarketing salesman in this district." "The judge made it clear that these were serious crimes and that the sentences were intended both to punish them and to send a message to other people who might think of participating in these boiler-room scams, whether they're presidents or salesmen," the attorney said. Capital Trust, which had offices in Newport Beach, El Toro and San Diego, was a highly sophisticated telemarketing fraud.

The company declared bankruptcy in November, 1986, and was shut down by state and federal authorities two months later. Complaints from clients prompted a joint federal and state task force to investigate. The federal indictment charged that the defendants sold investments in gold, silver and other precious metals by telling clients that the investments were insured and that their money would be placed in separate accounts. In fact, the investments were uninsured and worthless. Clients' money was used instead to finance the layish lifestyles of Capital's Quoted by largest California financial institutions.

In percent as of Friday, July 3 1 1 992. Rates subject to change without notice. The rates quoted are those made available to any qualifying borrower. Lower preferential rates may be available to customers. Deposits MMA: Rales paid on money-market deposit accounts with a balance of $2,500 and allowing six fund transfers per month.

CD: Annual yield on certificate of deposit account balance of $2,500 with 1 -year term. Loans Mortgage: On all mortgages, terms, appraisal fees and loan origination charges vary. the total annual financing cost expressed as a percentage, and is based upon a designated Fixed' Annual percentage rate on a 30-year, $202,300 fixed rate mortgage, including index; the index is assumed to remain constant. interest and additional finance charges, such as loan origination and closing fees. 2nd: APR on a second trust deed loan of $25,000 fully amortized over 15 years, adjustable Adjustable: Adjustable rate mortgage (ARM).

rate fixed rate). Intro: Introductory rate on a 30-year, $202,300 ARM. The low introductory rate Is on a Auto: APR on a 10,000, 48-month, new car loan, adjustable rate fixed rate), requiring a temporary period, after which the rate is adjusted upward. 20 down payment. APR: Annual percentage rate on a 30-year, $202,300 ARM.

This Is a calculation of Cmd: Annual percentage rate charged on balance. Some institutions charge an annual tee. Deposits Mortgage Loans Loans Deposits Mortgage Loans Loans Adjustable Adjustable Banks MMA CD Fixed Intro. APR 2nd Auto Card MMA CD Fixed Intro. APR 2nd Auto Card BankolAmet.

3.00 3.35 8.31 5.12S 7.32 9.68' 9.82' 19.80 Great Western 3.355 4.002 8.37 5.25 7.69 10.40 12.00' 19.8 The Bank of Calif. 3.02 31 8151 5.250 6.410 10.18' 10.26' 18.60 HomeFedBank 3.50 4.34 8.430 5.875 7.800 8.630' 9.660' 19.50 1st Interstate 306 335 83 5X1 ill 10.06' 9.455' 17.90 Home Savings 3.30 4.08 8.43 4.95 7.45 NA NA iao Sanwa Bank Calif. 3.00 3.355 8.219 5.125 7.606 6.94 9.90' 17.25 Household Bk 3.65 3.30 8.275 4.875 6.364 6.5 "50 jgj Sumitomo Bank 3.00 3A6 8.357 6.25 7.14 7.44 8.95' 19.80 Pacific 1st Bank 3.50 4.24 NA NA NA 9.750' J.450' 15.00 Union Bank 3.00 3.35 8.142 4.875 6.368 6.98 9.56' iaT Pomona Fst. Fed 3.35 4.15 8.294 5.25 7.626 9.909' 10.455' 18.00 VjisTiri; 300 335 a62 5.000 6.11 9.63' 9.50' 1980 Sears Savings NA 3.769 8.269 5.00 8.087 13.50' 13.00' NA So.CalSavings 3.30 4.13 8.06 5.875 7.67 NA NA NA Savings Loans Union Federal 3.500 4.300 8.163 4.750 7.289 8.283 NA WA Western Federal 3.150 4.081 8.136 5.550 7.577 NA NA 18 AmetSavings 3.300 4.133 8.353 5.25 7.711 NA NA 18.9 Western Financial 3.500 4.289 8.229 5.250 7.60 9.00' 9.90' 18.9 Beverly Hills 3.25 4.21 8.198 4.50 5.621 NA NA NA World Savings 341 Oo 8.220 595 7.742 8.646 NA 19.80 CalFedBank S51 4J0 IT? 5li TM 10.25' 9.82' 18 CenFedBank 3.01 4.10 8.17 5.25 TT3 10.25' 9.82' 18 Index Watch Latest Wk Wkago 2 Wks ago 3 Wks ago Citibank 3l00 3.350 7.965 4.875 6.264 10.293' 10.500'l9lo 6 Month Treasury Bill 327 3240 330 3320 Coast Fed Bank 3.30 4.133 8.23 4.95 6.21 NA 9.82' 18 1 Year Treasury B.llst 3530 3.530 3MQ 3930 DowneySavings 3.25 3.98 8.364 4.95 6.319 10.676' 10.5' 20.9 3 Year Treasury Motet 4800 470 4.990 5,330 Fidelity Federal 3.350 3.295 8.143 4.750 6.301 8.00 NA 18.00 5 Year Treasury Notet 5J40 5.850 5530 6720 1 st Federal BkCA 3.400 4.215 8.352 5.250 7.736 NA 13.080' 18 1st Nationwide 3.000 3.400 8.500 4.750 6.240 7.385 NA 17.9 Glendale Fed Bnk 3.000 3.873 8.453 5.250 6.539 11.208' NA NA 1 1th Dist. Cost of Funds 590 527 51 Federal Home Loan Bank Board Average 8.04 8.200 8.260 8.140 NA Not Available, Adjusted to a constant maturity average.

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