Wall Street

Ex-Tyco director pleads guilty to securities fraud

A former Tyco International director who secretly reaped millions while orchestrating a company acquisition pleaded guilty to securities fraud Tuesday in a deal that calls for restitution and a fine, but no jail time.

Frank E. Walsh, 61, admitted he failed to tell his own board of directors that the manufacturing conglomerate was paying $20 million in finder’s fees in exchange for his help in brokering Tyco’s 2001 acquisition of CIT Group, a financial services company. Half was paid directly to Walsh, and half was donated in his name to a charity.

As part of a plea deal with the Manhattan district attorney, Walsh agreed to repay Tyco the entire $20 million, and pay a fine of $2.5 million.

Agriculture

Feedlot owner sues Farmland National Beef

Kansas cattle feeder Mike Callicrate, a longtime gadfly in his fight against concentration in the meatpacking industry, has sued Farmland National beef for allegedly boycotting his feed yard after he spoke out against the giant meatpacking operation.

The lawsuit, filed last week in the U.S. District Court for Western Missouri, contends that Farmland National Beef quit buying cattle from Callicrate Feed yards in St. Francis because Callicrate criticized Farmland and other large meatpackers for having too much market power. His lawsuit seeks actual damages of at least $5.34 million, as well as punitive damages and attorney’s fees.

John Miller, chief executive of Farmland National Beef, said the lawsuit was without merit.

Internet

AOL wins spam suit

America Online has won a court judgment for nearly $7 million in damages against what it termed a “spam ring” that bombarded its members with junk e-mail pitching adult Web sites.

AOL said the damages awarded by the U.S. District Court in Alexandria, Va., was the largest ever from one of its lawsuits against spammers. AOL has filed some 20 such lawsuits.

One of the defendants in the latest case was CN Productions, which AOL said was responsible for transmitting more than 1 billion junk messages, accounting for a quarter of complaints AOL received about spam promoting adult sites.