Briefcase

Former Kmart leaders cleared of fraud charges

Federal prosecutors dropped charges Friday against two former Kmart executives on trial for allegedly falsifying the books at the discount-store chain.

“The government believes that it is more likely than not that the evidence will not sustain a conviction,” prosecutor Stephen Robinson said in asking U.S. District Judge Paul Borman to dismiss the charges. Borman approved the request.

Enio A. “Tony” Montini Jr. and Joseph Hofmeister were accused of securities fraud, making false statements to the Securities and Exchange Commission and conspiracy. Testimony in their trial began Tuesday.

Prosecutors had said the two men conspired to inflate the retailer’s earnings.

Kmart operates a distribution center in Lawrence.

Life sciences task force taps Lawrence co-chairs

A bank president and a top Kansas University official have been chosen to co-chair the new Lawrence Life Sciences Task Force.

Ted Haggart, president of Douglas County Bank, and David Shulenburger, Kansas University provost, were tapped to lead the task force at the group’s first meeting Friday afternoon.

The group, formed by the Lawrence Chamber of Commerce and KU, is seeking to create a strategic plan that will help the community attract more life sciences firms.

Task force members also briefly discussed the need for funding for the group. Douglas County Commissioner Bob Johnson and Lawrence Mayor David Dunfield both said they may suggest government funding for the group, but amounts weren’t discussed. The group hopes to complete a strategic plan within a year.

Former Enron chairman to produce documents

Former Enron Chairman Kenneth L. Lay agreed Friday to turn over personal and corporate documents to the Securities and Exchange Commission, which is investigating the bankrupt Houston energy company he headed.

Lay had resisted giving up the documents for more than a year, contending that surrendering them would violate his Fifth Amendment right against self-incrimination.

Under an agreement reached between the SEC and Lay and approved by U.S. District Judge Royce Lamberth, the SEC can use any leads derived from the documents for any law enforcement purpose, including any future civil action it may bring against Lay.

While the SEC cannot bring criminal actions, it can turn over documents to the Justice Department to pursue possible criminal violations.