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

To: StockDung who wrote (11838)	8/12/2003 12:35:44 PM
From: afrayem onigwecher	Read Replies (1) \| Respond to of 19428

DOJ Charges 8 In Connection With Allou Healthcare Fraud DOW JONES NEWSWIRES By Carol S. Remond Of DOW JONES NEWSWIRES NEW YORK -- Eight people have been charged with participating in a massive fraud scheme that led to the bankruptcy of Allou Healthcare Inc. (ALU). In addition, the defendants are being charged with participating in a scheme to falsify a fire marshal's report on an arson fire at Allou Healthcare's Brooklyn, N.Y., warehouse, according to a person familiar with the case. Details of the charges and the names of the defendants were not immediately available. The U.S. Attorney for the Eastern District of New York plans a formal announcement of the charges at 2 p.m. EDT Tuesday. Allou Healthcare, headquartered in Brentwood, N.Y., was forced into bankruptcy by its lenders in April. Congress Financial Corp., a unit of Wachovia Corp. (WB) and Allou's largest creditor, has alleged in court proceedings that Allou's inventories and income statements were inflated and that funds were diverted from the public company to other businesses controlled by the Jacobs family, Allou's majority shareholder. Brothers Herman and Jack Jacobs and their father Victor Jacobs were formerly Allou's chief executive, executive vice president and chairman of the board, respectively. Travelers Indemnity Co. agreed recently to pay $5 million to Congress Financial against Allou's $100 million insurance claim for damage from a mysterious fire at Allou's Brooklyn warehouse last September. The fire was called an arson by investigators. -By Carol S. Remond; Dow Jones Newswires; 201-938-2074; carol.remond@dowjones.com URL for this article: online.wsj.com Updated August 12, 2003 11:30 a.m.