Companies warned about doing business in Mississippi

For the first time in its 90-year history, the U.S. Chamber of Commerce is warning members about doing business in a particular state, saying Mississippi is a legal magnet for negligence lawsuits and eye-popping verdicts.

The chamber is spending $100,000 to run newspaper advertisements in the state Thursday urging Mississippians to call on lawmakers to make changes to the state’s “flawed legal system.”

The chamber’s decision to single out Mississippi prompted an outcry from the state’s top elected officials. Gov. Ronnie Musgrove called the pronouncement “outrageous.”

Mississippi has gained a national reputation for multimillion-dollar verdicts and settlements in high-profile suits involving the tobacco industry, asbestos, health maintenance organizations and drug firms.

“It’s a sad day in America when an institution like the U.S. Chamber of Commerce has no choice but to shine a spotlight on the state’s legal environment,” Tom Donohue, the chamber’s president and chief executive, said at a news conference.

Court

Three suspects indicted for bank fraud in Wichita

A grand jury has indicted three men on fraud-related charges for allegedly bilking a Wichita bank out of millions of dollars, the U.S. Attorney’s office announced Thursday.

Richard J. Boushka, 67, of Wichita is charged with 48 counts of bank fraud, three counts of money laundering, one count of conspiracy, eight counts of wire fraud and one count of criminal forfeiture of about $6.5 million in property and cash involved in the case.

Co-defendant Alejandro M. Badilla, 38, of Miami and Alberto P. Lopez, 49, of New York also are charged in connection with the case.

Boushka, owner of Ovelle Holdings, Inc. in Wichita, is accused of using false loan documents to obtain about $14 million from American Bank, also located in Wichita.

If convicted, Boushka faces up to 30 years in federal prison for bank fraud; up to 10 years for money laundering; up to five years for conspiracy and a maximum of five years for wire fraud.

Bermuda

Stanley seeks to cut taxes

Shareholders at Stanley Works, a century-old Connecticut institution known for its black-and-yellow woodworking tools, voted Thursday to reincorporate in Bermuda to reduce its tax burden.

But the change which Stanley spokesman Gerard J. Gould said would take effect at the end of business today may face challenges in court and in Congress. U.S. Rep. James Maloney compared the vote to the actions of Connecticut-born traitor Benedict Arnold.

The change won’t affect employment, the company said, but would reduce Stanley’s tax rate to about 24 percent from about 32 percent. Gould said Stanley would save $30 million in annual taxes.

Automaker

Ford forecasting profit

Ford Motor Co. is on track to meet or exceed its goal of breaking even this year and expects to record a profit for the second quarter, chairman and chief executive Bill Ford Jr. told shareholders Thursday at the automaker’s annual meeting. He also raised by 6.5 percent the company’s forecast of industrywide U.S. auto sales for the year.

It marked the first time Ford faced shareholders since becoming CEO. He replaced Jacques Nasser, who left the company under fire last fall.

The nation’s second biggest automaker lost $5.45 billion, or $3.02 a share, in 2001, its first annual loss since 1992 in part due to huge restructuring charges.

In January, Ford announced a turnaround plan that includes the elimination of 35,000 jobs, five plants and four slow-selling models.