The Daily Herald from Provo, Utah • 32

PAGE 6 2MhiHcmti FRIDAY, MARCH 11. 2005 BUSINESS EDITOR I Grace Leong 344-291 0 gleongheraldextra.com Local Industry News Notes A Dow Jones Final 10,851.51 45.89 A Final 1,209.25 2.24 A Gold Per ounce $442.80 0.70 Silver Per ounce $7,492 EXCHANGING THE DOLLAR Thursday Wtdntsday Yen 104.02 103.85 Euro $1.3424 $1.3407 Pound $1.9224 $1.9269 Canadian dollar 1.2031 1.2045 Mexican peso 11.0240 11.0010 Nasdaq Final 2,059.72 Karl Cannon Patent Review iMergent execs accused of illegal insider trading Business contest Universities to compete in business plan contest Brigham Young University, and the University of Utah are among 20 finalists nationwide and internationally competing in a business plan contest presented by the University of Oregon. This year's competition drew entries from more than 60 colleges and universities including BYU and the University of Utah. BYU's project is called ScrapbookFinds, while the University of Utah's project Ls called Wasatch Microfluidics. The New Venture Championship, recognized by BusinessWeek as one of America's top three collegiate business-plan competitions, is a project of the Lundquist Center for Entrepreneur ship in the Univ ersity of Oregon's Lundquist College of Business.

The 20 earns will compete in Portland, from April 7-9 for in cash prizes and recognition from the major business leaders who serve as judges and sponsors for the event. The winning team in this year's contest earns a $25,000 prize, automatic qualification for the MOOT CORP Business Plan Competition at the University of Texas at -Austin later this year and a berth in next year's contest. Second place is worth $10,000, while the third-place team earns $5,000. Auto dealership Grace Leong DAILY HERALD The fallout from alleged deceptive sales practices haunting Orem's iMergent Inc. continued Thursday as the company's shareholders were asked to join a class action lawsuit filed Tuesday that accuses iMergent executives of illegal insider trading.

Several law firms nationwide are now soliciting iMergent shareholders to join the proposed class action suit filed by a San Diego law firm following a deceptive sales practices complaint filed Feb. 22 by the Texas Attorney General's Office. The suit comes amid revelations that the online merchant services marketer had been subject td numerous customer complaints filed as early as 2000 and similar lawsuits by consumer fraud divisions in many states including Washington, and by the Federal Trade Cornmission. Tuesday's lawsuit, filed by the San Diego law firm of Lerach Coughlin Stoia Geller Rudman Robbins LLP, on behalf of iMergent shareholder Elliot Firestone, in U.S. District Court in Salt Lake City, alleges he and other shareholders were duped by the company's misleading statements about its prospects into buying iMergent shares at inflated The suit accuses iMergent and top management executives, including company president Brandon Lewis, chairman Donald Danks and chief financial officer Robert Lewis, of violating federal securities laws by "issuing a series of materially false and misleading statements that had the effect of artificially inflating" the stock's share price, thereby allowing the defendants to sell more than $6.5 million worth of stock in "illegal insider trading." Specifically, iMergent hid the fact that its sales practices violated the laws of many of the states in which it operated and failed to disclose the extent to which installment contracts with its clients were uncolleqtable, the suit said.

The company, which sells Internet merchant services through its unit StoresOnline was accused of selling defective software and service packages and extorting thousands of dollars in additional "executive mentoring" fees from its customers when they could not use the software packages. These software packages were also illegally marketed as "franchises" or "business opportunities" because StoresOnline "didn't provide any of the disclosures required by law regarding ownership, sales period, description of services, financial statements, training and security description, delivery date, earnings representations, legal actions, bankruptcy information or a sample copy of the contract," the suit said. In addition, the suit said iMergent had been extending credit to customers with sub-prime credit "without disclosing the company didn't require these customers to meet its credit standards, and without disclosing that tHe financing of these customers was a gamble because if they didn't generate sufficient business off their Web sites, the loans would not be repaid and iMergent's purported revenue stream could simply vanish" As a result of defendants' false statements about its prospects, iMergent's stock traded at inflated levels between Nov. 30 and Feb. 25, climbing to more than $25 per share on Feb.

9, at which time the company's top officers sold more than $6.5 million of their own shares, the suit said. By mid-February, rumors relating to the company's alleged sales practices in Texas began to seep into the market, causing its stock price to plummet from record highs to below $12 per share on March 1, when trading was temporarily halted, erasing more than $150 million in market capitalization. As of Thursday, seven law firrhs from across the nation are competing to represent the potential class plaintiffs a right that will be determined by the federal court. Jeffery Korn, general counsel of iMergent, said he believes the shareholder complaints are "without merit" and he intends to defend these actions vigorously. "It is normally standard for additional actions to be filed.

The court will eventually de-t ermine which, if any, of the suits could be used to represent the alleged class," chairman Danks said. iMergent has also denied the claims about its business practices in the Texas Attorney General's complaint. Mercedes-Benz of Lindon celebrates grand opening today Larry H. Miller Auto Group's new Mercedes-Benz of Lindon will celebrate its grand opening today. The event, which starts at noon and runs through 4 p.m., includes a ribbon cutting ceremony at 2 p.m.

and will showcase several of Daimler-Chrysler's 2005 and 2006 Mercedes-Benz models including the CLS 500, a luxury 4-door coupe. The 26.000 square-foot luxury auto dealership at 530 S. Lindon Park Drive in Lindon opened in October 2004 with 25 workers. "We're timing our grand opening with the start of the peak season, which runs ffom March through October. That's when the car market reenergizes itself because the weather's better and factory incentives are better," said Curtis Sampson, general manager and partner in the Mercedes-Benz dealership.

People on the Move Workforce Services names new deputy directors The Utah Department of Workforce Services named Christopher Love and John Nixon as the department's deputy directors, Love, who replaces Darin Brush, will oversee responsibility for the unemployment insurance program and regional operations that include 38 employment centers in Utah. Nixon, who replaces James Whitaker, will continue in his role as the department's chief financial officer and manage the budget, procurement and operational accounting teams. He will also be responsible for administrativerpolicy and work force development. SLC technology company appoints new president and CEO Con-tentWatch a Salt Lake City provider of Internet filter and protection tools for families and small businesses, named Jack Sun-derlage its president and chief executive. Sunderlage was a former Hewlett-Packard executive and current vice chair of the Utah Information Technology Association.

He replaces Brent Bishop, who will serve as chairman of the board. Former chairman Dennis Webb will serve as vice-chairman. Sunderlage took an early retirement from HP in July 2002. He has been a trustee of UITA since 1991 and will continue to serve as UlTA's vice chairman of the board. SLC law firm names new team member The Salt Lake City law firm of Holland Hart LLP said Trent N.

Butcher has joined the firm's intellectual property patent prosecution team. Prior to joining Holland Hart, Butcher was a patent attorney specializing in patent prosecution. He is also a registered professional engineer with over 10 years of engineering experience including research and development, manufacturing and patent experience. BIG BUSINESS AND TECHNOLOGY EXPO Fraud expert shares experiences 900 PATENTS GRANTED IN UTAH IN '04 The final patent numbers for 2004 make for interesting statistics. On December 28, 2004, the last patent-issuance date of the year, 16 new patents were granted to Utah inventors.

A total of 900 patents were granted to Utah inventors in 2004, up from 849 patents in 2003. In 2003, the annual total of patents granted to Utahns had declined for the second year in a row. This is believed to be a reflection, in part, of the receding economic times of 2001, given the approximately two-year cycle between filing and issuance of the average patent. Patent grants to Utahns had climbed steadily each year since the late 1970s and early 1980s, when Utahns' were typically granted about 200 patents annually. Patent Highlights Patents granted January 18: Adjustable door bolt jamb for safes.

Darren Wall, Pay-son; Ken Stoddard, Santaquin. Assigned to Liberty Safe and Security Products, Pay-son. Filed Feb. 21, 2003. Patent No.

6,843,184. Data transmission system for a downhole component. The system includes electrical connectors that are suited for harsh environments. David R. Hall, H.

Tracy HalL Scott Dahlgren, Cameron Sneddon, all of Provo; David Pixton, Michael Briscoe, both of Lehi; Joe Fox, Spanish Fork. Assigned to Novatek Engineering Provo. Filed Feb. 2, 2003. Patent No.

6,844,498. Patents granted January 25: Resonant motor system. An electrical motor which is caused to operate in response to alternating electrical signals. Jack H. Kerlin, Spring-ville.

Assigned to Raser Technologies Provo. Filed Oct. 18, 2002. Patent No. 6,847,186.

Sub rack based vertical housing for computer Systems TVu hnnciner nllmuc mul tiple computers to be stacked on top of each other. Shane R. Robbins, Santaquin and a non-local inventor. Assigned to Linux Networx, Bluff dale. Filed Sept.

11, 2003. Patent No. 6,847,526. To obtain a copy Copies of patents are available for $3 each, by mail: U.S. Patent and Trademark Office, Box 9 (Copy Sales), Washington, D.C.

20231; by credit card: via telephone (703-308-9726 or 800-972-6382), facsimile (703-305-8759) or e-mail (ptcsuspto.gov). Patents also can be viewed and printed free of charge pom sevdral Internet sites, including www.uspto.gov, or at www.dp.lnhinn mm (formerly www.patents.ibm com). This column is intended as general information only and not as legal advice. Always consult an attorney. Cliff Vaterlaus of Clayton, Howarth Cannon contributed to this column.

I Karl R. Cannon is a Registered Patent Attorney and a founding shareholder in the Salt Lake area law firm of Clayton, Howarth Cannon, P.C. He may be contacted at (801) 255-5335 or by e-mail at kcann6nchcpat.cdmJ dm. LS 1 -'vx4l NATIONAL BRIEFING Delta shares drop amid announcement of loss ATLANTA Delta Air Lines Inc. shares plunged Thursday after it warned it will post another substantial loss this year despite a recent round of pay cuts and other cost reductions.

It also said a bankruptcy filing remains a possibility. The disclosure in a regulatory filing fueled talk that the nation's third-largest carrier may need to sell one or more of its feeder carriers. Delta shares tumbled 56 cents, or 11.5 percent, to close at $4.33 on the New York Stock Exchange. Stocks of Local Interest Yesterday's performance of selected publicly traded companies David Randall DAILY HERALD Frank W. Abagnale is still able to joke now and then about his youthful exploits filled with bogus careers and years of check fraud around the globe.

When posing as a doctor in Georgia, he said, he referred away most people wanting advice on their injuries, but "when the girls came by I always gave them a thorough examination and sent them on their way. "I was young, but not stupid," he said. But the 56-year-old, now a fraud expert and 30-year veteran with the FBI, is still haunted at times by his past and scoffs at those who call him brilliant. "Had I been brilliant, I wouldn't have had to break the law," he told the audience at the David O. McKay Events Center, where he spoke as part of the Big Business and Technology Expo on Thursday.

Abagnale was catapulted into popular culture in 2002 by the film "Catch Me If You Can," which chronicles his life posing as a pilot, doctor and lawyer and the illegal schemes that made him rich before he should have graduated from high school. Now, after three prison stints in three countries, he's rich again, but this time within the law. He spends his time talking to groups about cracking down on what he once did, and, having created his own fraud prevention technology worth millions, he travels and works with the FBI for free. "I owe my government 800 times more than I could ever repay," he said Abagnale, who spoke for an hour about his life and then for another two hours about check and ID fraud, referenced the book and movie about his life and told audienccmembers, "This afternoon I'm here to tell you the story from my point of view." Abagnale said he ran away FRANK BOTTDaily Herald Frank Abagnale, subject of the movie "Catch Me if You Can," speaks at the UVSC McKay Events Center. He discussed his life of crime, how he reformed and the concept of family in America.

f- dren," he said. "She changed my life, she alone." He said he had nothing to do with "Catch Me If You Can" and was a little apprehensive when he first learned someone was making a movie about his life. But he said in the end he saw that director Steven Spielberg's motives were in the right place, citing an interview where the filmmaker said he wanted to make the movie not for what Abagnale did in his youth, but what he had done since. "My family and I felt very blessed that Steven Spielberg made the movie," he said. In the book about Abagnale's life, he mentions that during his travels he acted as a sociology prof essor at BYU for a year, but Abagnale did not discuss the issue during his speech, SYM COMPANY IAST CHANGE SYM COMPANY LAST CHANGE AA Alcoa Inc 30.48 MYGN Myriad Genetics 20.61 ABS Albertson's.

inc 20 75 NATO Nature's Sunshine Prod 17.63 ABX BamckGold 25.56 NETM NetManagelnc 6.921 AEP Amer Electric Pwr 34.21 0.53 N0VL Novell Inc 5.38 AIG Amer IntJ Group 66.12 0.52 NUS Nu Skin Enterprises' A' 21.77 AMGN Amgenlnc 61.03 NWN Northwest Natural Gas 35.70 -032 AWA America West HoMngs'B' 5.13 0.06 PCG Corp 35.35 039 BAC Bank of America 45.86 0.16 PFE Pfizer, Inc 26.75 0.01 BLL Ball Corp 45.33 -038, PTZ Pulitzer Inc 63.80 0.05 BLS BellSouth Corp 26.14 018 0 Qwest Communications tot 3.84 BN, BantaCorp 43.44 0.02 RD Royal Dutch Petrol ADR 63.11 Citigroup Inc 48.15 0.27 5336 0.07 CBAG CRESTED CORP 1.72 SBC SBC Communications 24.12 0.02 CMCSA Comcast CI' A' 3363 SC0XE SCO Group 3.98 CVX ChevronTexacoCorp 58.49 Sll Smith Intl. 61.97 DAL DettaAirUnes 4.33 -056 SK0 ShopkoStDres 19.48 138 DrS Disney (Walt) Co 28.00 0.02 SKYW SkyWestlnc 17.61 DNEX DionexCoip 55.47 SNT0 SentoCorp 3.44 ERICY Ericsson(LM)Tel'B'ADS 30.36 0.07 SPI. Scottish Power ADS 31.30 0.41 lETR EntergyCorp 70.39 0.39 STA St Paul TravelersCos 38.42 0.62 FC FranklinCovey 2.50 STR QuestarCoip 59.88 -107 GDW Golden West FM 60.12 0.71 SWFT Swift Transportation 25.16 0.06 GE Genl Electric 36.13 039 SY Sybase Inc 18.65 0.07 HCA HCAInc 47.91 0.17 Cora 19.39 0.00 HRB BLOCK (H 8, R) 52.47 0i5 TGT Target Corp 52.29 0-27 HSIC Sdwn(Hehry) 38.15 lid UnocalCorp 5933 IBM Intl Bus. Machines 92.41 0 06 UDR United Dominion RltyTr 2220 0.15 INK Intel Corp 24.85 0.01 UNH UntedHeafth Group 91.42 1.17 JBLU JetBlue Airways 18.00 USB U.S. Bancorp 29.60 0.10 JCP Penney 47.53 U5EG U.S.

Energy Corp 4.15 IWN Nordstrom. Inc 53.95 0.05 USNA USANA Health Sciences 43.44 0.44 KRON Kronoslnc 53.00 -036 UTMD Wan Medkal Products 21.750.139 LFB LongviewFibn? 17.05' VZ Verizon CommunKafaB ,36.17 0.03 LU Lucent Technoiooes 300 0.04 WEN Wendy's Intl 38.76 LUV Southwest Airlines 14.25 WFC Wells Fargo 60.21 0.47 MCK McKesson Corp 37.83 WMT Wal-Mart Stores 52.15" MER Memll Lynch 61.05 0.41 WNI Weider Nutrition Intl'A' 5.67 M(TY MITYEriterprises 1 15.02 0.02 U.S.Stel 54.78 MMSI Merit Medical Systems 12.81 XEL feel Energy 17.86 0 JO MSFT Microsoft Corp 25.43 0.12 7J0N Sons Bancorp 69.85 0.19 MU Micron Technology 10.69 0.09 at 16 when, out of nowhere, i he learned his parents were divorcing and he would have to choose one of them to live with. "Divorce is a very devastating thing for children to deal with," he said, although he said he was "incredibly gifted" to have grown up for as long as he did with a loving father. He said during those years away from home, while he may have looked much older, he was still very young on the "When I was 16 years old I was just A child. All 16-year-olds are just children," he said.

"I cried myself to sleep 'til I was 19 years old." Abagnale credited his wife and family for eventually turning him around. "God gave me a wife. She gave me three beautiful chil- CALL 375-5103 TfJ SUBSCMBP.