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Show usiness Wednesday Morning Section 22, 1986 January B Page U State Stops Firms Trading, Alleges Stock Manipulation Fiy Guy Boulton Tribune Staff Writer $100,000 by The state Securities Division suspended trading Tuesday of Freedom Coin Company Inc., a penny slock that soared from 1 cent to more than $1 a share, for alleged stock manipulation. The manipulating the Free- order issued by the securities division alleges that Kenneth Brailsford made more than five-pag- e The order alleges that Lynn A (lingo sold the original public offering of 2 5 million shares "mainly to friends, relatives and business associates and provided them with "substantially all the money to purchase the stock. In a box job, a stock promoter gains control of most of the outstanding shares of a company By dom Coin's stock. "This is the first action of this type on the suspicion of fraud in the market." said Mark Griffen, a broker, dealer analyst for the securities division controlling the supply of the stock, the stock promoter can create an artificial price lot the slock because no stock is for sale. This artificial price eventually gets investors interested in the stock at which point the stock promoter begins selling his stock. Basically, the securities division is alleging tnat Mr. Brailsford did what is called a box job in the jargon of the penny stock market Mr Clingo received the money to purchase the stock from Mr. Brails-for- "who in reality functioned as the controlling party behind Freedom, the order alleges d Oil Prices Slip "Substantially all the money received by the company for the original offering was supplied by Brailsford, the order alleges. "The stock was never offered for sale to the public in the initial public of- an ounce. In the past week, crude traded on the spot and futures market has plunged by about $5 a barrel because OPEC is producing an estimated 1 million barrels a day of surplus oil even though a mild winter in Europe and the northeastern United States has depressed heating oil demand. In early December, the Organization of Petroleum Exporting Countries decided to abandon production curbs and to cut prices, if necessary, to regain its share of the oil market from producers. contracts traded Many on the Merc hit new lows Tuesday. oil for March delivery slipped 1.52 cents to 58.1 cents a gallon and leaded gasoline dropped 1.17 cents to 60 cents a gallon. The New York Merc raised the margin on the March crude contract by $1,000 for more financial protection in face of extremely volatile trading. Mobil Corp., the second-largeU.S. oil company, lowered the price it will pay for West Texas intermediate by 75 cents to $27 a barrel. Posted prices for domestic crude still are well above levels on the speculative spot and futures market. Traders said oil markets were rife with rumors that Saudi Arabia, OPEC's principal producer, was driving down prices to force Britain to lead a move among members to curb production. Saudi Arabia and Britain are expected to ho'd mb'rmal talks on whether OPEC and producers could agree on reining in output to .,u: ' a free fa'! in di prmns. non-OPE- g non-OPE- non-OPE- Associated Press Laserphoto Kodak to Again Sell 35mm Cameras A quality assurROCHESTER, N.Y. ance specialist checks pictures taken with Kodaks new VR35 camera. Kodak introduced two models of the fully automatic camera Tuesday and other new 35mm products, including its new Kodacolor VR-100 and VR-400 films that will replace 0 0 its Kodacolor and films. G G VR-10- VR-40- Record Penalty for 17,000 Violations of Secrecy Act Bank of America Fined $4.75 Million i - Los Angeles Times Writer Bank of America Tuesday was fined a record $4.75 million for failing to report thousands of large cash transactions as required by federal law. The Treasury Department said the BankAmerica, parent of Bank of America, has $120 billion in assets and is the nations second-largebank holding company. The violations by Bank of America were widespread throughout the units and branch system of the bank, Francis A. Keating II, assistant secretary of the Treasury for enforcement and operations, said. While Treasury has no information that the bank engaged in criminal activity in connection with these violations, it is certain given the volume and nature of violations that the of information about cash transactions deprived the government of timely law enforcement leads in drug, tax and other investigations." Denied Involvement Bank officials have maintained throughout the government scrutiny of its compliance with the law that it voluntarily reported numerous inadvertent" violations. It strongly denied any conscious involvement in drug money laundering or other illicit activity. "We're glad to have this agreement behind us. The violations were not willful and no evidence was found nation's largest bank had committed 17,000 violations of the Bank Secrecy Act, a tool used to battle the laundering of cash used in drug smuggling and other illegal activities. The law requires financial institutions to report all cash dealings of more than $10,000 to the Internal Revenue Ser- vice. The bad news came on the same day that Bank of America reported a million loss for 1985, the second-largeannual loss in U.S. banking history and Bank of Americas first yearly deficit since the Depression. The figure reflects massive loan losses in agriculture, real estate, energy and Third World countries. $337 linking the bank or its employees with any illegal activities, bank spokesman John Keane said. We've substantially improved our reporting systems over the last year. bank of America has 935 branches in California and a broad network of offices around the globe. It was not immediately known which branches and which countries were the most heavily involved in the illegal activit- lion levied against Crocker National Bank of San Francisco last August for failure to report 7,877 transactions. However, the fine against Crocker represented a higher percentage of its $22 billion in assets than the Bank of America levy. By John M. Broder st y- Treasury officials said that extensive violations of the reporting law were uncovered by auditors from the Office of the Comptroller of the Currency. The office, which regulates national banks, conducted an exhaustive and, by most accounts, hostile, examination of Bank of America in the spring and summer of 1985. The Treasury statement announcing the agreement on the civil penal- non-filin- g In addition, the bank suspended divipayment of the dend on common stock, which had been reduced from 38 cents a share just five months ago. The move is a blow to lens of thousands of small shareholders who depend upon Bank of America dividends for living ex- penses. Largest Penalty Ever The Bank Secrecy Act fine was the largest civil penalty ever imposed under the law, eclipsing the $2.25 mil ty said the bank had cooperated filly with Treasury in developing the scope of its liability." Since early last year, the Treasury Department has been pursuing a crackdown of bank failures to comply with the law. On Feb. 7, the Bank of Boston pleaded guilty to a felony charge of failing to report $1.22 billion in cash transactions with nine foreign banks and agreed to pay a $500,000 fine. In all, the government said more than 60 banks had come forward to with the discuss past By Joe Rolando Tribune Staff Writer The downtown Salt Lake City post office's intention to move into the ground or first floor of ExpoMart, 230 W. 200 South, will result in the relocation of fashion exhibitors who lease space there on a temporary basis, to the fourth floor, a representative for the buildings owner said Tuesday. Roger J. Sanders, vice president of special credits for American Savings & Loan, said that relocation would actually benefit exhibitors who lease space on a permanent basis. That, he said, is because buyers would have to go to at least the second floor, where the permanent exhibitors are now located, before seeing any of the exhibitors' displays. He said, "They're per- manent exhibitors 200 West. Mr. Sanders said the permanent exhibitors elect to maintain their exhibits on a basis and Copper State Thrift & Loan, we dare compare our Jumbo Money Market Certificate rates with any bank or savings and loan: At Rale Options 10.50 7.80 $16 000 Money M.vkel certihcate it CS1 M SI 5 000 lie at in C al nrtilK aie (,! DenuMl at a In cl Oa-i'- ba' k Interest Earned Yield 11.02 7.80 $1,653 $1,170 $ 483 Savings Bonus ' J 70-1- w HmiI'-'- i (.Dull. Ui.inir, I A TIHES 38.88 39.88 43.88 46.88 185-- 185 70-1- 195 70-- 205 70-1- P20575814 80813 28.88 30.88 10813 3188 P20575R15 33.88 35.88 36.88 P21575R15 75R14 OH PON wheel ignment through January 28 P21575R14 P22575R15 P73575R1S 1 iNT P165800-1- PI8575D14 P 957 50 4 P20575D14 22560-1- :9Wn Ml fast. Intro rjos70-- 39.88 39.88 41.88 43.88 47.88 r on Import Con otiiowowti nooov UP TO r57J-(PM57J-1- P21575D15 P73575D15 5 BUMS 25.88 33.88 39.88 45.95 P71S7M5 47.95 49.95 5.95 771575-1- -- I TRIAD MAY CLOSE-OU- COUPON HEAVY ' 470570-1- limited Supply VARY T "COUPONS" COUPON GABRIEL DISC & DRUM GAS SHOCKS BRAKES 19 Install IlnlnRt Import tyttwm Totf drlvo Mott cor INST AVAIL. MOST CARS INST. AVAIL MOST CARS S1 1575-- RI957S-1- 4 $995 Porn 6 Molt A 14.45 4L45 m.93 83.95 5.95 H5S-I- SHOCKS InipRKt F78 x 15 ALL MASON FACTORY fMfMffakctwoft i 24.88 31.88 32.88 34.88 LOWEST POICI RVHR DUTY 13 CREDIT Fall tor our lull range ol savings bwnusf", fair's ant) Dart s $33.95 82.95 84.95 5 18514 POLY SNOW 80813 oxtra LIFETIME ,000.00 INSTANT CREDIT CARDS HONORED VISA, MASTERCARD, AMERICAN EXPRESS, DINER S CLUB, CARTE BLANCHE, SEARS, J.C. PENNEY MONTHLY PAYMENTS AVAILABLE EXP. ASK FOR DETAILS 13186 Convenient, validated parking at Exchange Place or Downtown Sail ake Cdy at 3r)lJ South Mam BMUMUO L I'M' 18558-1- i SEA$ca sna radials 37.88 Outside California n ties. eaBHarTrr lUHilfl r Bannister Brighton, Ltd. d 25.88 23.88 27.88 75R14 H h Last week, the postal service agreed to lease the ground floor of ExpoMart for 10 years for use as the new downtown post office. The lease will cost the postal service, which also secured an option to buy Expo-Mar- t, $345,000 a year. ExpoMart is primarily a fashion wholesale trade mart where manufacturers representatives display their product lines. The property was first opened in Oct. 1982 in an enlarged and renovated office warehouse facility at 200 S. 31.88 35.88 31.88 35.88 A W66H 0 i.r a 4th So po rtfuUi , v to a n t mu an not m Hi A u" cnTai j ujy i I ; " ' jt Ha Ll.ih y i V I v '' I i L.ih o' a I'M' I oh iu m Cl t r , i u R mm I ' o' & Mam WEST VALLEY 3847 Redwood Rood 973-701- 4 James Taylor, president of Utah Power & Light Co., has been named to chair Junior Achievement of Utah's 1986 Operating Fund Drive, which begins this week. In accepting that position for the three-montcampaign, Mr. Taylor said Junior Achievement's programs are "probably the most exciting and effective advancements for economic education to date. He said for success to be achieved, it is crucial that businesses increase their Junior Achievement investment. a reMore than 40 area schools are participating in cord number Junior Achievement's new programs, said Mr. Taylor. Mr. Taylor has long supported Junior Achievement by serving in various leadership roles. He is also active in community affairs, serving on the board of directors of both the Salvation Army and the Utah Symphony. Stan Foutz, president of the local Junior Achievement board of directors, said Junior Achievement aims to provide young people with practical economic education programs. He said it provides young people with experiences in the private enterprise system through a partnership with the business and education communi- Savings. year-roun- Column ng 165,000-square-fo- 80R13 66 4 UP&L Chief to Lead Fund-RaisiDrive really the American Savings & Loan acquired the ExpoMart property from Bagley & Co. at a foreclosure sale in 1985. Bagley & Co. put the building up for sale as did the new owner, American 5 70-- 1 SILVER & 41 See floors. ii DOWN ON GOLD, In California Column therefore pay mure for their leases than those whose exhibits are displayed temporarily or only during an exhibition What will happen to the exhibitors if the U.S Postal Service decides to exeercise its option to buy ExpoMart? Mr Sanders said the postal service will be legally required to honor all previously signed lease agreements with the fashion manufacturer representatives. But he said that should not present any problems for the post office, since it would not likely need any backbone to the exhibition trade because they give you the constant source of leasing income. Mr. Sanders said fashion buyers now enter the ground floor, look at the temporary exhibitors displays but often leave thinking there are no more exhibits. The exhibits of those who lease space on a permanent basis are now on the second and third law. 20 Bannister Brighton's Layaway Program allows you to control $10,000 worth ol precious metals with as little as $2,000 Call Toll Free Today' See ExpoMart Tenants To Switch Floors 5 PLATINUM were obtained These profits through fraud, deceit or misrepresentation by Brailsford in that Freedom omitted to state that the initial public offering would be purchased bv Brailsford and not the public," the or der alleges. Mr. Griffen said the $100,000 figure Post Office Moving In all-tim- 800-523-79- This pushed the stock's price to a level that was "artificially high" -enabling Mr Brailsford "to re..p excessive profits" when he sold the stock he controlled, the order alleges. This alleged controlling interest was not disclosed to the public and violated security regulations, according to the order. By Roz Liston United Press International Crude oil prices slipped further Tuesday and remained below the critical mark on world markets amid fears OPEC is carrying out its threat to launch a global oil pricing war. Britain's benchmark Brent crude for March delivery fell 10 cents to $19.70 a barrel on the North Sea market, where oil is sold to the highest bidder in transactions viewed as a barometer of long-terprice trends. Brent broke through the barrier Monday, the first time that a major crude had been at this level since the Iranian revolution set the stage for the second OPEC oil price shock in 1979. The British pound weakened. Prices on the Oslo stock exchange plummeted as foreign investors sold shares in Norwegian companies in response to gloomy forecasts for that nation's economy, which is heavily dependent on North Sea oil revenues. On the New York Mercantile Exchange, West Texas intermediate the key U.S. crude for February delivery dropped 68 cents to another e low at $20.59 a barrel. The crude futures began trading in 1982. During the day, West Texas intermediate skidded to $19.85 a barrel on the Merc. Oil company stocks retreated on U.S. exchanges and gold, which tracks oil prices over time, fell $1.50 800-423-31- "create an artificial demand'' onv the stock began trading on the open market because he controlled the amount of stock available for sale, the order alleges fering. Further Home-heatin- Mr Brailsford then was able to The order also alleges that Mr Brailsford eventually gamed control of "substantially all of the outstanding common shares" and the "friends, relatives and business associates" of Mr. (lingo received "only token payments for their services " 5 SANDY 8610 So. 566-363- 700 East 1 TIRE AUTO CENTERS |