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To: afrayem onigwecher who wrote (10650)	10/31/2002 12:45:53 PM
From: StockDung	Respond to of 19428

New Jersey Pensions Lose $6 Billion in Worst Quarter (Update1) By Andrew Pratt Trenton, New Jersey, Oct. 31 (Bloomberg) -- New Jersey's pension funds lost about $6.07 billion, or 9.4 percent, from July through September, the worst quarter in ``the state's modern history,'' the new chairman of the State Investment Council said. Orin Kramer, who took control six weeks ago after acting Chairman Robert Hoffman was ousted, said in a memo that the 11- member council has failed to oversee its investments adequately and should consider buying stocks to conform to indexes such as the Standard & Poor's 500. The memo is an indication that Kramer will try to change how New Jersey's $56 billion in pension assets are handled. New Jersey is one of only two states that rely on their own staffs for all investment decisions rather than contracting with outside managers. Kramer, who manages Kramer Spellman LP, a fund for the wealthy, questioned that system. ``A large number of public funds...have achieved both higher returns and less volatility than New Jersey over the past decade,'' Kramer wrote in the memo, which was obtained by Bloomberg News. Hoffman, who has been on the council for more than 10 years, didn't respond to an e-mail message seeking comment. The losses cap three years in which declining stocks have shrunk New Jersey's retirement funds by $20 billion, or 24 percent. Public pension funds of more than $1 billion have lost an average of about 3 percent annually for the past three years, according to Wilshire Associates. More Disclosure More than 80 percent of public pension funds have outperformed New Jersey over the past 10 years, Kramer said, citing Wilshire Associates. The pension portfolio, which finances retirements for 600,000 teachers, police officers and state workers, has ranked near the bottom among its peers over the past three years even though the state has taken on higher-than-average risk, Kramer said. The council ``can be expected to'' improve oversight, require more disclosure from the state investment managers and put tighter controls on investments, Kramer said. He wouldn't comment further. Last month, New Jersey Governor James McGreevey, facing criticism about the fund's performance, asked two ex-governors and former Federal Reserve Vice Chairman Alan Blinder to study declines in the value of state holdings. McGreevey named Kramer to the council earlier this year. Republican New Jersey state senators and public employee unions have criticized McGreevey for orchestrating the election that put Kramer, who has helped raise millions for the governor and other Democratic candidates, in charge. Kramer could use the fund to reward Wall Street campaign contributors with business, they argue. AOL Time Warner Because of the fund's losses, state and local governments may have to put more than $1 billion into the pension funds some time in the next two years if results don't improve, according to state Treasurer John McCormac. The state lost $826 million on AOL Time Warner Inc. and let an investment in Sun Microsystems Inc. shrink by $970 million, both examples of failures to oversee investments, Kramer said in his memo. ``There are no limits as to how overweighted New Jersey can be in one name,'' Kramer wrote. New Jersey ``apparently lost more money than any other state on Adelphia Communications Corp., yet acted too slowly to become the lead plaintiff in a lawsuit against the company, Kramer said. Kramer's memo said New Jersey manages its fund differently than other states. For example, New Jersey's investment staff only makes recommendations to buy or sell shares on Tuesdays. New Jersey is the only state that does not buy stocks to mimic equity indexes such as the S&P, and the state doesn't own real estate or invest in hedge funds, assets used by other funds to lower risk, the memo said.

To: afrayem onigwecher who wrote (10650)	10/31/2002 3:15:50 PM
From: StockDung	Read Replies (1) \| Respond to of 19428

SEC Chairman Pitt Asks Probe of Webster's Selection (Update1) By Neil Roland Washington, Oct. 31 (Bloomberg) -- The Securities and Exchange Commission ordered a probe of the selection of William Webster as head of a new accounting oversight board, after Chairman Harvey Pitt failed to tell fellow commissioners Webster headed the audit committee of a company sued for fraud. Webster told Pitt about the allegations against U.S. Technologies Inc. ``shortly'' before Pitt and two Republicans on the SEC elected the former FBI director by a 3-2 vote on Friday, the New York Times reported today. Pitt requested an investigation following the article's publication. Pitt, whose ties to the accounting business have drawn criticism ever since his appointment by President George W. Bush in August 2001, chose Webster to head the new Public Company Accounting Oversight Board over Democratic objections that Webster wasn't fit for the job. Today's revelations fueled calls for Pitt to go. ``The president should finally begin to restore investor confidence by appointing an SEC chairman devoted to the public interest, not the accounting industry,'' said House Minority Leader Richard Gephardt, a Missouri Democrat. Pitt ``is not behaving in a trustworthy manner.'' Walter Stachnik, the SEC inspector general charged with investigating Webster's selection, didn't respond to a request for comment. Neither Pitt nor Webster returned calls to their Washington offices. Stachnik reports to both Pitt and to Congress, SEC spokesman John Heine said. The SEC's staff was informed of Webster's work at U.S. Technologies, and ``the commission staff identified nothing of concern after reviewing the situation,'' said Christi Harlan, an SEC spokeswoman. Botched Responsibility ``Mr. Pitt has botched one of his most important responsibilities following enactment of the corporate reform bill last summer,'' said Representative Edward Markey, Democrat of Massachusetts and a senior member of the House Energy and Commerce Committee. ``It appears that he purposely withheld information that clearly was material and relevant to the vote last week.'' Webster, a former federal judge and director of the Central Intelligence Agency and the Federal Bureau of Investigation, headed a three-person audit committee at U.S. Technologies, a company delisted from the Nasdaq Stock Market in 1996 whose shares now trade for less than a penny a share. Among the company's activities was using prisoners to perform ``labor intensive work'' for Fortune 1000 companies, according to the company's website. Webster's audit committee voted in 2001 to dismiss U.S. Technologies' outside auditors, BDO Seidman LLP, after they raised concerns about the company's internal controls, the Times said. Webster himself left the U.S. Technologies board after he said he was told the company could no longer provide him with insurance against claims by investors, the Times said. Control Weaknesses U.S. Technologies and its chief executive, C. Gregory Earls, are facing lawsuits from investors who say they were defrauded of millions of dollars. Earls has been accused of using investor funds for his own purposes, including refurbishing a personal residence and to make personal investments, according to a complaint filed against him in Superior Court in Washington in May 2001. BDO Seidman notified the audit committee of weakness in internal controls on finances and accounting, failures to promptly record material transactions and deficiencies in the organization and retention of financial and accounting records. Webster told the Times he didn't look into most of these issues, though he said U.S. Technologies was concerned about BDO Seidman's bills and the length of time it took to perform the audits. Democrats will work to change the accounting oversight law next year to limit the SEC's discretion over the oversight board if they gain control of the House and Senate after next week's election, said Representative Barney Frank, a Massachusetts Democrat and senior member of the House Financial Services Committee, in an interview. Too Passive ``Judge Webster's behavior is part of what we're trying to correct,'' said Frank, who called for both Webster and Pitt to resign. ``As chair of an audit committee, he was much too passive in the face of accusations.'' Gephardt said Pitt's endorsement of Webster over John Biggs, the former head of the TIAA-CREF pension fund, ``defied the spirit'' of the new accounting industry oversight law. Biggs, when asked about what happened with the nomination said, ``Harvey Goldschmid told the truth.'' Goldschmid said last week he and Pitt had met with Biggs in September and said he would be endorsed as head of the new board by all the SEC commissioners. ``But the audit lobby squeezed the House Republicans,'' he said. Roel Campos, one of the two Democratic SEC commissioners, said he wasn't told by Pitt about Webster's connection to U.S. Technologies before the vote. Goldschmid declined to comment today. The Republican commissioners, Paul Atkins and Cynthia Glassman, didn't return calls for comment. President Bush continues to support Pitt as chairman, White House spokesman Claire Buchan said. ``Judge Webster has a long career and is respected on both sides of the aisle as an individual of integrity,'' Buchan said. ``We're pleased Chairman Pitt will be reviewing the process used in appointing the members to the oversight board.'' Corzine, McCain The White House was ``not made aware of this information until it was brought to our attention by the New York Times,'' said Dan Bartlett, Bush's director of communications. Pitt had told the Senate Banking Committee earlier this year that ``part of the responsibility corporate leaders have to investors and the market is complete and accurate disclosure,'' said Darius Goore, a spokesman for Senator Jon Corzine, Democrat of New Jersey and a panel member. ``It now appears the chairman himself is not living up to his own tenets.'' Corzine is drafting a letter today to President Bush on the latest revelation about Webster's background. ``This just reaffirms Sen. McCain's long held view that Mr. Pitt should be replaced,'' said Rebecca Hanks, a spokeswoman for Republican Senator John McCain of Arizona. ``Pitt's days are numbered,'' said Charles Mulford, accounting professor at the Georgia Institute of Technology in Atlanta. ``At best this is a mistake. At worst it's negligence. Either way it makes Pitt look bad.''

To: afrayem onigwecher who wrote (10650)	10/31/2002 8:05:37 PM
From: StockDung	Respond to of 19428

Department of Enforcement,Complainant,vs.John Fiero 83 Montgomery Street, #302 Jersey City, NJ 07302 nasdr.com

To: afrayem onigwecher who wrote (10650)	10/31/2002 9:22:07 PM
From: StockDung	Read Replies (1) \| Respond to of 19428

Namco Official Says Company's U.S. Arcade Business Struggling By Hiroshi Suzuki and Yoshifumi Takemoto Tokyo, Nov. 1 (Bloomberg) -- Namco Ltd., the Japanese maker of ``Pac-Man,'' is struggling at its arcade business in the U.S. because shopping mall traffic is falling, a Namco executive said. Sales at arcades nationwide in September fell by about 10 percent from the same month a year ago, Namco Managing Director Keiji Tanaka told Bloomberg News in an interview. August sales fell 2 percent to 3 percent from a year ago, he said. Namco's arcade business accounted for half its total sales in the year ended March 31. The drop in visits to the company's shopping mall arcades comes as the U.S. consumer confident index fell to a nine-year low this month, threatening to restrain consumer spending at the start of the holiday shopping season. ``U.S. shoppers are spending less time in shopping malls where most arcades are located,'' Tanaka said. U.S. consumers ``are going to discount stores more frequently now.'' Shopping malls in the U.S. are expected to attract fewer customers this year-end holiday season, according to an estimate by Bank of Tokyo-Mitsubishi Ltd. economist Mike Niemira, who predicts holiday sales may be the worst in a decade. The slump is taking place at the same time Namco is aiming to boost earnings at its arcade business by shuttering money-losing arcades around the world. Namco is also closing arcades with low profitability. In the year ended March, Namco's group operating profit from its arcade operations posted a profit of 2.1 billion yen ($17 million) on sales of 77.4 billion yen, compared with a loss of 820 million yen on sales of 75.8 billon yen a year earlier. Scrap and Build To improve profitability, Namco plans to scrap 130 of its arcades -- about half its arcade store network -- in the U.S. over the next three years. In the year ending March, the company plans to shutter 50 stores. It will close another 50 in the year ending March 2004 and 30 more the following year, Namco's Tanaka said. The company expects the liquidation to boost profit before taxes by about $10 million over the period. Costs related to closing the stores will be ``negligible'' because Namco will transfer its game machines to existing arcades, he said. In Japan, Namco plans to shut 36 arcades by the end of March. The company will open 9 to 10 stores in new locations. The company is already benefiting from the decision to close some arcades in Japan. For the full year ending March 31, Namco expects operating profit at its arcade business to beat its 3.3 billion yen forecast thanks to cost cuts and store closings. Namco's Tanaka said the company will meet its 13 percent gross profit margin at its arcade business in Japan in the current fiscal year. It plans to improve that to 15 percent in the year ending March 2004.