Shoe store chain urges vote against dissidents

Payless ShoeSource Inc. said Monday its board was urging shareholders to vote against three dissident board nominees of the Barington Companies Equity Partners LP group.

In a proxy filed with the federal Securities and Exchange Commission, the Topeka-based shoe store chain said independent proxy analysis firm Institutional Shareholder Services also recommended shareholders vote against director nominees William J. Fox, Harold D. Kahn and James A. Mitarotonda.

Payless says its board thinks this would be the worst time to risk the distraction and disruption caused by dissident directors who, in its view, are running on a platform of “vague ideas and quick fixes” that aren’t in the company’s or shareholders’ long-term best interests.

Insurance

Former county attorney to lead anti-fraud section

Former Douglas County Dist. Atty. Jerry Wells has been named director of the Kansas Insurance Commission’s new anti-fraud division.

Kansas Insurance Commissioner Sandy Praeger on Monday announced Wells’ appointment and the expansion of the department’s movement to investigate insurance fraud and educate Kansas consumers about protecting themselves from illegal activity.

Wells most recently was director of government affairs and special counsel to the commissioner. The former executive director of the Koch Crime Institute said the department was investigating more than 250 cases of fraud.

Corporate scandal

Former WorldCom CEO accused of false filings

Federal prosecutors brought new charges Monday against former WorldCom CEO Bernard Ebbers, accusing him of making false filings with the Securities and Exchange Commission.

A new indictment returned by a federal grand jury includes six new counts against Ebbers — one for each quarterly or annual report WorldCom filed from late 2000 through early 2002.

Ebbers already was facing federal fraud and conspiracy charges related to the collapse of the former telecommunications titan, the largest bankruptcy in U.S. history.

Court

Cattle brokers receive jail time in fraud scheme

Two Missouri cattle brokers were sentenced Monday to several years in federal prison for bilking investors in Kansas and three other states of millions of dollars.

George Young, 73, of Grant City, and Kathleen McConnell, 55, of Kansas City, Mo., were sentenced in U.S. District Court in Kansas City, Mo., after pleading guilty last October to felony wire fraud, mail fraud, representation and criminal forfeiture.

Young received a sentence of nine years, and McConnell seven years and three months. Both must spend five years on supervised release after completing their prison terms. They also were ordered to jointly make restitution of $183 million.

Young and McConnell co-owned United Livestock Services, doing business primarily in Missouri, Kansas, Nebraska and Iowa. Another company, Professional Business Services, provided bookkeeping and accounting.