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Non-Tech : Auric Goldfinger's Short List -- Ignore unavailable to you. Want to Upgrade?

To: RockyBalboa who wrote (11057)	2/5/2003 11:08:07 AM
From: StockDung	Respond to of 19428

Sports stars linked to Znetix fraud • Kareem Abdul-Jabbar, Vida Blue, Eric Dickerson and others are being sued for not "protecting shareholders." Sun Staff and Wire Services February 5, 2003 The net around Znetix, the Bainbridge Island health and fitness company at the heart of the state's largest stock fraud ever, has widened to include some famous sports stars. A recent lawsuit accuses athletes Kareem Abdul-Jabbar, Vida Blue, Eric Dickerson and 38 others of failing to stop Znetix founder Kevin Lawrence from misusing corporate funds. The lawsuit filed in U.S. District Court Jan. 22 by Michael Grassmueck, the receiver appointed by the court to recover any remaining assets of Znetix and its affiliate Health Maintenance Centers, asks for more than $10 million. The suit claims the defendants -- directors or officers with the company -- failed to perform their "fiduciary duty of protecting shareholders and investors." The lawsuit said despite the defendants' oversight responsibilities, Lawrence "had unchecked power and control of Znetix and was allowed to use Znetix for his personal gain and profit ..." Lawrence was arrested in August on 64 counts of fraud and money laundering and remains in custody pending trial this year. Four others have pleaded guilty, but little of the $91 million that investigators estimate was bilked from 5,000 investors has been recovered. "The directors and officers acted in bad faith in that they knew or should have known that they were not performing their duties in a manner that was in the best interest of Znetix," the suit says. "Nonetheless, they continued to serve and accept compensation from Znetix, all the while burying their heads in the sand and ignoring flagrant wrongful acts going on around them." Government lawyers say the investors were told Znetix and Health Maintenance Centers had developed proprietary medical and fitness software and equipment, essentially combining medical centers with fitness clubs. Instead, Lawrence is accused of using the money to buy dozens of luxury automobiles, boats, jewelry and Hawaiian real estate. Grassmueck wrote that there is evidence that all 41 defendants in the lawsuit were officers and directors. Abdul-Jabbar, a former Los Angeles Lakers center; Dickerson, a former Los Angeles Rams and Indianapolis Colts running back; Blue, a former Oakland Athletics pitcher; boxer Laila Ali; and Olympic Gold medal sprinter Michael Johnson at one time sat on the Znetix board of directors, according to the court filings. The lawsuit does not name as defendants the dozens of high-profile athletes, including Shaquille O'Neal and Seattle Seahawk Trent Dilfer, who have been involved with Znetix promotions or at sports figures whose names appear on documents that were shown to potential investors, Grassmueck said. "We didn't use any list that was generally circulated from a promotional standpoint to attract investors," Grassmueck said "That is not the basis of the lawsuit."

To: RockyBalboa who wrote (11057)	2/7/2003 2:21:16 AM
From: StockDung	Respond to of 19428

GOLDMAN CUTS COMING By BETH PISKORA -------------------------------------------------------------------------------- February 7, 2003 -- Goldman Sachs is planning to hand out pink slips to as many as 10 to 20 percent of its options traders early next week, The Post has learned. There may be other layoffs as well, possibly among equity traders, as Goldman struggles with rapidly-falling revenues after acquiring several big trading firms during a buying binge in 2000. Other Wall Street firms have also cut back on their trading staff. Goldman's buying binge culminated in the $6.5 billion purchase of Spear, Leeds & Kellogg, then the Street's leading market maker, in September 2000. That acquisition isn't working out financially or culturally, sources say. The poor performance of the Spear Leeds unit is a blow to Goldman CEO Hank Paulson, who was believed to have paid too much for the trading firm - six months after the market topped. A spokesman for Goldman confirmed there would be layoffs, but would not say how many. "This has absolutely nothing to do with culture clash," the Goldman spokesman said. "This is purely a function of the economics of the business. The acquisition of SLK has been a success and we are pleased with where we are." But other sources on Wall Street insist the marriage has problems. "Goldman Sachs is not happy with SLK. It was not as profitable as expected because the business is in the dumps like everything else on Wall Street," said one source familiar with the situation. "And there's also a cultural mismatch. Goldman has been trying to get SLK to class up its act. SLK thinks Goldman is a bunch of stuffed shirts." There's no question the acquisition has not been a financial success. In 2002, Goldman had trading revenues of $5.25 billion, down from $6.35 billion in 2001 and $6.63 billion in 2000. Though many of the highest-paid Spear Leeds execs cashed out and left the company after the acquisition, Goldman still had to find ways to cut when the markets turned south. Goldman cut about 10 percent of the Spear Leeds staff over the last two years. But that wasn't enough. When the financial problems became evident late last year, Goldman Sachs hired a consultant to determine how to improve margins at Spear Leeds. The consultant, directed by Goldman execs to "find the money," suggested layoffs of 20 percent of floor traders and recommended creating a high-level staff position, perhaps a managing director, to act as a liaison between Goldman and Spear. While an executive recruiter was hired to find candidates for the job, and is believed to have vetted several nominees, Goldman never hired anyone. Some of Goldman's options traders who work on the floor of the American Stock Exchange were notified late last month that their positions would soon be eliminated. As many as 10 to 20 percent of the options traders at the Chicago Board of Options, the Philadelphia Stock Exchange and the Pacific Exchange are also expected to be cut - although Goldman is not specifically targeting employees of Spear, Leeds with this round of layoffs.

To: RockyBalboa who wrote (11057)	2/7/2003 2:33:31 AM
From: StockDung	Respond to of 19428

UPDATE - Dell COO Rollins sees tough year for technology Thursday February 6, 7:01 pm ET By Duncan Martell (Adds further comments from Rollins, byline) PALO ALTO, Calif., Feb 6 (Reuters) - Dell Computer Corp. (NasdaqNM:DELL - News) Chief Operating Officer Kevin Rollins said on Thursday that corporate spending on technology will be soft this year due to the weak economy and concerns about a potential U.S. war with Iraq. ADVERTISEMENT "What we have felt all along is that much like 2002, 2003 will be a fairly difficult year due to the economy more than anything else," Rollins told Reuters in an interview ahead of a speech at the Churchill Club, a civic organization. "The overhang with the potential war makes people skittish and nervous," he said. "Once the economy rebounds, spending on information technology will not rise sharply or aggressively. When the war is resolved -- however it is resolved -- I don't think you're then going to see a massive resurgence in IT spending," Rollins said. "It's all going to be fairly muted." Austin, Texas-based Dell, the No. 2 personal computer maker, has increased market share amid stagnant demand by keeping costs low and using its direct sales system to cut prices. The company reports earnings for its fourth fiscal quarter ended January on February 13. Rollins declined to discuss the results. Rollins said that Dell will continue to be very aggressive on pricing this year due to declines in the cost of components. Dell keeps its inventory low by making machines to order, which enables it to benefit by passing on falling prices of computer components like microchips to customers. Rollins said the company remains interested in acquiring niche computer services companies, but is not looking at doing a large acquisition or a certain number of purchases. "I think it's highly unlikely to impossible that you'll see us doing anything like PWC," Rollins said. International Business Machines Corp. (NYSE:IBM - News) bought PriceWaterhousecoopers Consulting last year to help build out its services business for $3.5 billion. Rollins said Dell's data storage business will continue to grow. Dell has a deal with EMC Corp. (NYSE:EMC - News) in which it sells EMC data storage machines. More recently, it agreed to license some EMC systems and build them itself. The growing ties between the companies doesn't mean that the partnership will result in Dell buying EMC, Rollins said. "They want to be independent. We're not interested in buying them," he said. While the PC industry is still sluggish, Rollins said to look for Dell to increase revenue in overseas markets, particularly China, and in its data storage business. "Our storage business will continue to grow and that will be a bright spot," Rollins said. "Our non-U.S. global markets will grow very rapidly for us." Wireless computing, using the standard known as WiFi or 802.11, is poised for rapid growth, Rollins said, which will be aided by Intel Corp.'s forthcoming mobile microprocessor named Centrino due out soon. "As soon as the economy improves, I think you're going to see wireless be an explosive growth driver, for corporations as well as consumers," Rollins said. Already, Starbucks Corp., the world's largest specialty coffee retailer, is rolling out WiFi access in its stores, allowing notebook PC users the ability to connect to the Internet while sipping cafe lattes. WiFi access is also becoming more common in airports and hotels in the United States, Canada and overseas. (Additional reporting by Caroline Humer in New York)

To: RockyBalboa who wrote (11057)	2/8/2003 12:00:20 AM
From: StockDung	Respond to of 19428

Top News -U.S. Tells Diplomats to Leave Mideast February 7, 2003 10:45 PM EST WASHINGTON - The State Department advised nonessential U.S. diplomats and family members on Friday to leave Israel, Jordan, Syria and Lebanon. Private U.S. citizens also were advised to leave those countries and Americans were cautioned not to travel to Israel. At the same time, the department urged Americans to stay away from Iraq and said it was closing the Polish office in Baghdad that provided consular service to Americans in the absence of U.S. relations with Iraq. U.S. citizens in Iraq were urged to leave. "The Iraq regime's continuing refusal to cooperate fully with U.N. weapons inspectors has led to mounting tension between Iraq and the international community," the department said. The statement said foreigners in Iraq had been used in the past as "human shields," and there are credible reports they may be kidnapped. Officials said the decision was made on the advice of American diplomats in the embassies and not because of a specific threat to U.S. personnel. The moves coincided with growing indications that President Bush may authorize the use of force against Iraq to get rid of its suspected weapons of mass destruction. "This decision results from an overall assessment of the security situation in the region, a rise in anti-American sentiment and the potential for violence and terrorist action against American targets, especially as the international community continues to focus on the issue of Iraqi disarmament," Lou Fintor, a department spokesman, said. "This is not to say that military action against Iraq is imminent," Fintor said. The authorized departures "merely represent a prudent measure as we prepare for various contingencies in the region." The U.S. embassies in Tel Aviv, Amman, Damascus and Beirut and the U.S. consulate in Jerusalem will remain open to assist Americans, the spokesman said. The diplomats and family members would return home at government expense, leaving only essential personnel at the embassies in Tel Aviv, Amman, Damascus and Beirut and the consulate in Jerusalem. "Private American citizens in Israel, the West Bank or Gaza should evaluate rigorously their own security situations and should consider departing," the department said. And U.S. citizens were urged to avoid travel to Israel and the two territories. "Americans in Israel, the West Bank and Gaza should exercise caution and take prudent measures to maintain their security," the State Department said. Hundreds of U.S. diplomats and family members could be involved in the departures.

To: RockyBalboa who wrote (11057)	2/8/2003 12:50:32 AM
From: StockDung	Respond to of 19428

BETHLEHEM SEEKS TO END RETIREE BENEFITS By BILL BERGSTROM Associated Press Writer PHILADELPHIA (AP) . Bethlehem Steel announced Friday that it would seek elimination of health and life insurance benefits for about 95,000 retired workers and their dependents, telling the bankruptcy court overseeing its reorganization that it can no longer afford it. The request was immediately condemned as ``morally callous'' by the United Steelworkers of America, which said it would oppose terminating the benefits. The company, which filed for Chapter 11 bankruptcy protection in October 2001, proposes ending the benefits on March 31. It said it is negotiating with several health-care insurers to seek proposals for substitute group insurance programs that the retirees would have to pay for on their own. ``Bethlehem has been very clear that we do not have a business plan that would allow us to continue the coverage we have been providing . or any coverage at all,'' said company spokeswoman Bette Kovach. Bethlehem Steel seeks to end the program as part of its move to accept a purchase offer by Cleveland-based International Steel Group. The ISG board has approved the deal, and the Bethlehem Steel board has scheduled a Saturday conference call meeting to vote on the proposal. The buyout proposal would then go to the Bankruptcy Court for approval. Bethlehem Steel faces a benefits bind because of its long history and once-vast work force . about 300,000 at its peak. That means health care plans and their dependents now number 95,000, the company said, compared with fewer than 12,000 remaining active employees. The company has said since filing for bankruptcy that it wouldn't be able to continue those benefits. ``We have obviously been trying to prevent this for some time and they have decided to go ahead and do it,'' United Steelworkers spokesman Marco Trbovich said. ``For a bankrupt company that is doling out millions in golden parachutes to top executives to say that it must cut off the health care benefits of people who worked a lifetime in the mills is a disgrace,'' Leo Gerard, president of the Steelworkers, said in a statement. . . . On the Net: Bethlehem Steel: bethsteel.com