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Monday Business Roundup
Will Brad Pitt Star in the Movie?Good news for the bank-robber groupies in the audience: you don't have to content yourselves with a lachrymose Brad Pitt movie anymore, thanks to a former Denver resident turned Wyoming child-care entrepreneur and lone bandit.
Using modern tools of deception rather than a six-shooter and a mask, Anthony L. Ciocchetti spent the last year-and-a-half pilfering the vaults of several Gillette, Wyoming banks, according to a federal grand jury in Cheyenne. Ciocchetti, who moved from Denver to Gillette in January 2006 promoting a day-care center called the "Kiddy Country Club and Montessori School," was charged last week with bank fraud, mail fraud and money laundering charges that could land him in jail for the next few decades.
Ciocchetti apparently had little trouble getting lenders to hand him money, the indictment alleges; his only mistake was the classic lazy bank robbers' folly: robbing too many establishments in the same town.
In other business news: organic farmers come together to persuade Congress to support sustainable agriculture; resort towns seek creative ways to provide affordable housing for non-plutocrats; and the last drive-in theaters continue to disappear.
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Itinerant Goat Ranching
Hooves of Gold, Stomachs of Iron
I was riding my bike over the weekend on the bike path through CU's Research Park when I came upon a herd of goats. Grazing away in the brush along the creek, hooved and horned, with a dozen or so interested spectators of the human variety. I pulled up and talked to their herder, a weathered, friendly woman named Lou Colby.
After we chatted a few minutes I asked her where her permanent base is.
"Well, don't have one right now."
This took a minute to sink in. So, do they live in hotels or what?
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Monday Business Roundup
New Twist in “Whole Oats” SagaThe Whole Foods–Wild Oats merger saga took another unusual turn last week when Walter Robb, Whole Foods' co-president and chief operating officer, posted a blistering message on his blog accusing federal regulators of "not doing their homework" and questioning "what world they are living in."
Citing antitrust concerns, the Federal Trade Commission has asked a judge in Washington D.C. to block the proposed $670 million deal between Whole Foods, the nation's largest natural-foods grocer, and its slightly smaller Boulder-based rival Wild Oats. Among other things, the Commission has publicly released emails from Robb to the Whole Foods board acknowledging that the purpose of the merger is to avoid "nasty price wars" and to "eliminate forever" the chance of a mega-grocery chain like Safeway buying Wild Oats.
In other business news: Local institution Robb's Music lives on under new ownership; Fort Collins Brewfest evokes mixed reactions from Old Town merchants; and real cowboys' favorite jeans brand moves upscale.
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Live, Acoustic, and Legal
House Concerts Live Again
Boulder's tradition of live house concerts is alive again, if only provisionally. And judging by the comments following the Daily Camera story about yesterday's decision by the County Commission to issue a "stay of enforcement" to allow private music events like the ones at Greg and Debbie Ching's house to go forward, the controversy won't die soon. [more]
Monday Business Roundup
Nacchio Reflects, RegretsAs he awaits his July 27 sentencing on a felony insider-trading conviction, Joe Nacchio has a lot to think about, including a likely 10-year jail term. And he has a lot to regret.
First, he must have had second thoughts about his defense strategy, which initially consisted of a "black-box" argument centering on purported Defense Dept. contracts that Nacchio claimed would turn around Qwest's deteriorating financial condition – and that only he was privy to. That defense was effectively rendered a non-starter when the judge barred the release of reams of classified material. Nacchio's lawyers ended up calling only three witnesses for the defense.
Despite saying, near the end of the case, "I love my defense lawyers," Nacchio also likely rues his choice of attorney. Herbert Stern, 70, stumbled through rambling opening and closing statements and often seemed unprepared, according to many courtroom observers including the Post's David Milstead.
Also regrettable from Nacchio's point of view was the timing of his case. The former Qwest CEO's trial closes a cycle of corporate-malfeasance cases including executives from Tyco, WorldCom, and Enron, and federal prosecutors have honed their tactics – "successfully using a less-complicated strategy: Executives lied to investors and profited from it,´as AP writer Sandy Shore put it.
Whether Nacchio regrets his actual crime – of lying to investors and analysts about Qwest's true business prospects while selling off millions of dollars of stock – is anybody's guess.
Fed tactics
In other business news: Colorado stocks climb sharply as Dow nears 13,000; First Data Corp. sees big profit slump; and Gov. Ritter tries to avoid a school-funding crisis.
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Former Qwest CEO Faces Jail Time
Nacchio: GuiltyFormer Qwest CEO Joe Nacchio was convicted Thursday on 19 of the 42 counts of insider trading he'd been charged with. Nacchio's sentencing is set for July 27, when he faces a term of up to 10 years in prison and a $1 million fine on each count. He may be forced to forfeit some or all of the $52 million he made on the stock sales.
The jury's verdict seemed to turn on the April 24, 2001 earnings conference call, when Nacchio said nothing to analysts and investors about Qwest's deteriorating financial prospects even though he'd been receiving warnings from subordinates for months. All of the sales on which Nacchio was convicted took place after that call.
Nacchio's defense rested largely on the novel assertion that he had classified information on big Dept. of Defense contracts that Qwest was in line to receive, which he claimed would have turned the company's finances around. Those contracts never materialized.
Monday Business Roundup
Nacchio Waits as Jury PondersThe jury in the Joe Nacchio trial enters its third day of deliberations today, and so far there's no indication that a verdict is forthcoming. Lengthy deliberations often indicate welcome news for the defendant, particularly in a case of insider trading like this one, where Nacchio never took the stand. However, one shrewd observer of this trial, Denver Post columnist Al Lewis, believes that Nacchio's defense actually hurt his case: "The defense - also feeling confident prosecutors hadn't made their case - only put forth three witnesses," Lewis wrote on Friday. " Prosecutors, however, gained momentum this week. They scored key testimony in cross-examining defense witnesses, including statements that Nacchio could have held his shares when he exercised his options instead of dumping them."
In other business news: the aerospace industry booms in Colorado; two premier international energy conferences kick off in Boulder; and eSoft Inc. continues its recovery from the tech crash.
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State of the Statehouse
Inglés Será Idioma Oficial de Idaho: English Will be the Official Language of IdahoUn comité del Senado de Idaho hoy votó para hacer el inglés el idioma oficial del estado.
(A committee of the Idaho Senate today voted to make English the state's official language.)
El voto era seis a tres. El Senador Republicano Joe Stegner y los Demócratas Edgar Malapei y Clint Stennett votaron el No.
(The vote was six to three. Republican Senator Joe Stegner and Democrats Edgar Malapei and Clint Stennett voted No.)
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Sadly we are not above this
Attorney Frank Azar brings the “Strong Arm” to Anna Nicole Smith Custody CaseI'm ashamed of myself for adding to the number of words written about the Anna Nicole Smith case, but there's been an important development that will leave no resident of Colorado unmoved: according to today's Rocky Mountain News: "Frank Azar, an Aurora attorney known for his local television ads, has joined the legal team representing Anna Nicole Smith's mother." That's right, "the strong arm" himself, known to all in the Front Range from his ubiquitous television commercials, will help Anna Nicole Smith's mother pursue custody of her granddaughter.
I feel invested in the outcome of this case, as I personally contributed to Azar's rise: In 1994, when I was working my first high school job at a Blockbuster Video on Hampden Avenue in Denver, I made Frank Azar's membership card. I remember my hands shaking with excitement as I fired up the lamination machine.
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A Common Sense Vote on Latah Health Services
Time for the Flies to Get Out of the OintmentToday, Latah County voters are being asked to decide whether or not to approve the sale of Latah Health Services to Moscow’s Gritman Hospital for $1. That’s right -- one dollar. Sound like a bargain? Think again. Latah Health Services is in dire straights. It costs the county $10,000 a month to operate and maintain, and it needs an estimated $1.5 to $1.8 million in upgrades and repairs. If Gritman purchases the facility, it will continue to provide home and community health care services, including adult day health. [more]
