Category: business and finance

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Former union leader facing prison, fines for embezzling

Union_Label_Astro2

JANUARY 9, 2016    LAST UPDATED: SATURDAY, JANUARY 9, 2016, 1:21 AM
BY PETER J. SAMPSON
STAFF WRITER |
THE RECORD

With his conviction for conspiracy and embezzlement reinstated by an appeals court, a former North Jersey labor leader is facing a possible prison term when he is sentenced later this month for plotting to siphon funds from an electricians union in a scheme to pad the salary of his future wife.

Following a trial in federal court in Newark, a jury in November 2013 found Richard “Buzzy” Dressel guilty on two of eight counts: conspiracy to embezzle union funds and embezzlement from Local 164 of the International Brotherhood of Electrical Workers in Paramus.

Five months later, U.S. District Judge William J. Martini granted a defense motion for acquittal, ruling the government had not presented sufficient evidence for conviction.

The office of U.S. Attorney Paul J. Fishman challenged the judge’s decision, and a three-judge panel of the 3rd U.S. Circuit Court of Appeals in Philadelphia reversed Martini and reinstated the conviction in August.

As a result, Dressel, 66, of Montvale, who as business manager held the local’s top position for 14 years, is facing up to five years in federal prison and a $250,000 fine on each of the two counts when he is sentenced by Martini on Jan. 21.

Before his indictment in 2012, Dressel had served on the boards of the Hackensack University Medical Center Foundation, Bergen Community College and the state Casino Reinvestment Development Authority. He had been a member of the New Jersey Sports and Exposition Authority, and he was a major force in Democratic Party politics, raising funds and using the rank and file to get out the vote.

Dressel has steadfastly maintained he committed no crime.

 

https://www.northjersey.com/news/crime-and-courts/ex-union-leader-facing-prison-for-embezzling-1.1488156

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Macy’s closing dozens of stores across United States, including 4 in Tri-State area

Macy's

POSTED 8:09 PM, JANUARY 6, 2016, BY ANDREA CAVALLIER AND ASSOCIATED PRESS, UPDATED AT 08:11PM, JANUARY 6, 2016

NEW YORK — Macy’s is closing dozens of stores and cutting thousands of jobs across the United States after disappointing holiday sales.

The Cincinnati-based department store chain says sales fell 5.2 percent in November and December at existing stores. Warm weather and lower spending by international tourists hurt sales.

The company also listed Wednesday which 40 stores it would close.

https://pix11.com/2016/01/06/macys-closing-dozens-of-stores-across-united-states-including-4-in-tri-state-area/

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Yellen’s Job Puzzle: Why Are 20-Somethings Retiring?

Millennials theridgewoodblg.net

January 4, 2016 — 8:00 AM EST
Americans are increasingly foregoing paychecks due to disability, school or retirement

Kasia Klimasinska kklimasinska

How come more people are retiring in their early 20s? Why are middle-age men becoming stay-at-home dads? What’s keeping women out of the workforce other than illness, kids or school?

Those are some of the questions raised in a new Bureau of Labor Statistics report that shows changes over the past decade in why people stay out of the labor

Here’s what the bureau found, broadly: Thirty-five percent of the U.S. population wasn’t in the labor force in 2014, up from 31.3 percent a decade earlier. (You’re considered out of the workforce if you don’t have a job and aren’t looking for one. That’s distinct from the official unemployment rate, which tracks those out of work who are actively job hunting.)

Drilling down into the numbers reveals more about the shifts in the reasons some people forego a paycheck. In all age groups, for instance, more people cited retirement as the reason for being out of the labor force, and it wasn’t just older people.

For Americans between the ages of 20 and 24, the share of those sidelined over the past decade because they were in school increased, unsurprisingly, during the decade that included the Great Recession. What’s more unusual is that the share of 20- to 24-year-olds who say they’re retired doubled from 2004 to 2014.

https://www.bloomberg.com/news/articles/2016-01-04/yellen-s-job-puzzle-why-are-20-somethings-retiring-

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Opinion: China’s rigged markets could fall much further, much faster

China_Hack1

Published: Jan 4, 2016 11:11 a.m. ET

HONG KONG (MarketWatch) — Those fearing that China is the big risk in the year ahead for global markets hope that the first trading day of 2016 does not set the tone for the rest of the year.

Between a 7% fall in shares that triggered new circuit breakers on the ShanghaiSHCOMP, -6.86%  and Shenzhen stock exchanges 399100, -8.21%  and accelerated weakness in the yuan, there is ample fodder for China bears.

The question being posed anew is whether 2016 will be the year Beijing finally throws in the towel on its attempts to coerce multiple asset markets upwards, while its economy continues to sink in a sea of debt.

While yet more weak industrial activity numbers from the Caixin China December PMI got the new year off to a flat start, the bigger concern is whether the leadership still has the will or the ability to continue holding up stock prices as its confrontsever more painful policy choices.

https://www.marketwatch.com/story/chinas-rigged-markets-could-fall-much-further-much-faster-2016-01-04

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WHOOPS: Dow kicks off 2016 with 400-point plunge on China fears

wall-street-bull

Published: Jan 4, 2016 10:57 a.m. ET

The Dow Jones Industrial Average plunged about 400 points in early trade Monday as a 7% drop in Chinese shares stoked a global selloff in stocks.

The Dow DJIA, -2.42%  plunged nearly 411 points to 17,015, led by a drop in DuPont Co. DD, -4.08%  and American Express Co. AXP, -3.24%

The S&P 500 SPX, -2.32%  fell about 45 points to 1,998, led by a decline in technology stocks, financials and industrials. Only the S&P 500’s energy sector showed a modest gain as Middle Eastern tensions helped lift crude-oil prices.

“It is not surprising to see such a selloff considering negative headlines from China and tensions between Iran and Saudi Arabia. What is surprising is that it is happening on the first day of the year,” said Ryan Larson, head of equity trading at RBC Global Asset Management.

“While trading desk are busier than they normally would be on Mondays, this is not a panic selling, it’s orderly. We are likely to see this kind of volatility a lot in 2016,” Larson said.

The S&P 500-tracking “SPY” ETF opened down nearly 2%. According to Bespoke Investment Group analysts, since the SPY SPY, -2.24%  began trading in 1994, the ETF has opened lower on the first trading day of the year only twice in 22 years, and never by more than 1%.

Meanwhile, the Nasdaq Composite COMP, -2.86%  tumbled by 138 points to 4,869 as tech stocks took the brunt of Monday’s drop.

 

https://www.marketwatch.com/story/us-stocks-set-for-tumble-at-open-as-china-fears-return-2016-01-04

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Facebook must face shareholder class actions over IPO

330facebook-800x420

By Jonathan Stempel

NEW YORK (Reuters) – A federal judge has certified two shareholder class actions accusing Facebook Inc of hiding concerns about its growth forecasts prior to the social media company’s May 2012 initial public offering.

U.S. District Judge Robert Sweet in Manhattan said retail and institutional investors who claimed to lose money from buying Facebook shares at inflated prices in connection with the $16 billion IPO may pursue their respective claims as groups.

The decision is dated Dec. 11 but had been kept under seal, which Sweet lifted in an order made public on Tuesday.

Other Facebook defendants include Chief Executive Mark Zuckerberg, Chief Operating Officer Sheryl Sandberg and other officials.

Facebook is appealing the class certifications, which the Menlo Park, California-based company said are “without merit” and conflict with “well-settled” precedent.

Shareholders accused Facebook of concealing internal projections prior to its IPO of how growth in mobile devices, an area in which it generated little ad revenue, might hurt its prospects, even as it quietly warned underwriters to cut their forecasts.

Facebook made its market debut on May 18, 2012 at $38 per share. Its share price fell to $17.55 on Sept. 4, 2012 and stayed below the IPO price for more than a year.

The stock ultimately rebounded, and closed on Tuesday up $1.33 at $107.26 on Nasdaq. That gave Facebook a roughly $303 billion market value, Reuters data show.

 

https://news.yahoo.com/facebook-must-face-shareholder-class-actions-over-ipo-165210981.html;_ylt=AwrC2Q4bDYRWg2EAfHfQtDMD;_ylu=X3oDMTBybGY3bmpvBGNvbG8DYmYxBHBvcwMyBHZ0aWQDBHNlYwNzcg–

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Mark Zuckerberg ,Not Giving Away Millions Of Dollars , Copy A Status ,Facebook Hoax

facebook-dislike-1

December 27,2015

Danny Cox

A lot of people want to believe that easy ways to get money are true because seriously, what’s better than easy money? It’s now believed by a lot of people that Facebook head Mark Zuckerberg is giving away millions of dollars. Well, part of that is true. Yes, Zuckerberg does have plans to give away a vast majority of his fortune, but it won’t be done because you copy and past a status update. That is simply nothing more than another Facebook hoax.

There are currently variations of a Facebook status going around right now, and people are falling for it. The post claims that Zuckerberg is giving out $4.5 million to 1,000 Facebook users as long as they copy and past a status on their profile.

Sometimes, the status will say it’s going to the “first 1,000 users,” that post is as reported by NBC Bay Area. Other times, it says that as long as you post the status by midnight, then you’re in the running for the money.

Here is one variation.

“According to Good Morning America, Not a hoax! Mark Zuckerberg has announced that he is giving away $45 billon of Facebook stock. What you may not have heard is that he plans to give 10% of it away to people like YOU and ME! All you have to do is copy and paste this message into a post IMMEDIATELY. At midnight PST,Facebook will search through the day’s post and award 1000 people with $4.5 million Each as a way of saying thank you for making Facebook such a powerful vehicle for connection.”

For some reason, it’s supposed to be made more believable because the status update says that it was on Good Morning America. Also, chances are that if something says this is “not a hoax,” then it most likely is a hoax.

https://www.inquisitr.com/2660905/mark-zuckerberg-is-not-giving-away-millions-of-dollars-because-you-copy-a-status-another-facebook-hoax-goes-wild/

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It’s Christmas, which means people are crashing brand new drones, Especially dads

Regulating Drones

By Sean O’Kane

on December 25, 2015 11:59 am

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If hoverboards are this year’s most buzzed-about holiday gift, drones are probably a close second. They were a big hit last year, and that appears to be the case again this year — even if this time around, the new drone owners will have to register their new toys with the FAA.

The next best thing to opening one on Christmas morning is basking in the glory of watching people crash them, and if you’re hungry for some drone crash schadenfreude, nothing beats seeing one happen from the drone’s perspective.

https://www.theverge.com/tldr/2015/12/25/10665372/christmas-drone-crashes-dads

 

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‘The worst delivery service ever’: FedEx admits it has missed THOUSANDS of Christmas deliveries to the outrage of parents across America

FEDEX

[fusion_text]FedEx will not deliver thousands of presents on time for Christmas Day
It blamed too many last-minute orders and bad weather for the delays
Furious parents blasted FedEx for spoiling their children’s Christmas
Some late deliveries will take place in limited areas on December 25

By OLLIE GILLMAN FOR DAILYMAIL.COM

PUBLISHED: 20:23 EST, 24 December 2015 | UPDATED: 03:18 EST, 25 December 2015

Millions of children across America will rush down their stairs on Christmas morning to find a pile of presents waiting for them under their trees.

But for thousands of families there will be less gifts than they planned – after FedEx admitted it did not make all of its scheduled deliveries on time for the big day.

With just hours to go until Christmas, the delivery service admitted defeat, infuriating scores of customers whose festive plans are now ruined.

https://www.dailymail.co.uk/news/article-3373771/FedEx-thousands-parents-naughty-lists-admitting-won-t-make-scheduled-deliveries-time-Christmas.html

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Lessons on New Jersey Corporate Welfare Schemes

New_Jersey_State_Senator_Stephen_Sweeney

Bill to restart BEIP payments angers some NJ businesses

DECEMBER 20, 2015    LAST UPDATED: SUNDAY, DECEMBER 20, 2015, 1:21 AM
BY HUGH R. MORLEY
STAFF WRITER |
THE RECORD

The passage last week of a bill that would restart incentive payments to about 270 New Jersey companies owed hundreds of millions of dollars for creating jobs in New Jersey sounds, at first glance, like good news for the companies.
Yet the legislation has upset some of the businesses by including a delayed payment schedule that means some won’t get their money for years.

The state stopped funding the Business Employment Incentive Program (BEIP) more than two years ago, after underfunding it and skipping payments for years because of budget constraints. The revived program changes the method of payment, from rebates needed to be provided for in the state budget, to tax credits, which are reductions in taxes the businesses have to pay.

But the new system’s delayed payment schedule has only renewed criticism from the companies affected, which are now owed $785 million.

Payments not made between 2008 and 2013, for example, will now be paid in five installments, beginning in 2017 and concluding in 2021 – more than a decade after some first became due. Payments not made in 2014 and 2015, won’t be paid until 2019, and all payments for the next five years will be paid at least three years after they are accrued.

Sponsors of the bill, which passed both houses of the Legislature on Thursday and is expected to be signed by Governor Christie, say the payment delays are needed to cope with an estimated total obligation of $1.267 billion once all the bills are paid by 2025. The estimate comes from the state Economic Development Authority, which manages the state economic development programs.

But the delays are too long for some companies already irate that they reshaped their business – in some cases moving into New Jersey from out of state – based on a commitment that the state hasn’t kept.

“That’s absolutely asinine, literally,” said Thomas Churchill, vice president for operations at Model Electronics in Ramsey, of the delayed payment schedule.

Churchill, whose company remanufacturers audio navigation and other auto parts, added, “If they are doing it over a period of time, it becomes monotonous, and idiotic. It becomes very, very hard to manage, and it’s probably not worth the cost.” He said spreading payments over several years makes calculating how much money the company receives, and the taxes owed on it, more complicated and burdensome.

Churchill’s company moved from Rockland County, N.Y., to Bergen County in 2005 with the help of a grant for $468,000 over 10 years, contingent on bringing 85 new jobs to the state. After he fulfilled that commitment, the state at first paid the annual rebate checks on schedule, but the company has not received a check since getting the company’s 2011 incentive payment.

Another business owner, who is owed payments but declined to be identified, welcomed the bill but added: “However, I cannot get excited for something that is four years away, and six years after the first payment was due initially.” In a reflection of how the BEIP history has damaged confidence in the state’s development efforts, the owner added: “I am sure anything can happen and change by then anyway, as it did two years ago.”

 

https://www.northjersey.com/news/business/n-j-trying-to-make-good-1.1477063

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Spending deal to lift oil export ban

Congress

By Devin Henry – 12/15/15 09:48 PM EST

Lawmakers have agreed to lift the four-decade-old ban on crude oil exports as part of a spending and tax package announced by congressional leadership on Tuesday night, according to a GOP lawmaker.

In exchange, Republicans agreed to extend a series of expired or expiring renewable energy tax breaks. Both the wind production tax credit and the solar investment tax credit won five-year extensions in the tax and spending package unveiled on Tuesday, the GOP lawmaker said.

Lifting the crude oil ban was a key goal for Republicans, who have said American oil producers should have expanded access to the international market at a time of low prices and new competition from Iranian oil.

Democrats have long proposed trading the renewable energy credits for crude oil exports, though until recently there was little movement on getting an exports-tax credit package to the Senate floor.

But Republicans were aggressive in pushing to including the crude oil bill in the end-of-the-year tax overhaul and spending bills. Democrats worked to tie exports to renewables in the package, with Senate Minority Leader Harry Reid (D-Nev.) saying Tuesday morning that Republicans were weighing a Democratic offer to accept either both provisions or neither of them.

Export supporters say the possibly of Iranian oil hitting the global market as sanctions are lifted on the country would hurt American producers. Ending the export ban, a policy instituted to respond to the OPEC oil embargo in the 1970s, would help level the playing field, they said.

The White House has opposed lifting the export ban on its own, saying the Commerce Department already has the right to approve exports on a limited basis.

 

https://thehill.com/policy/energy-environment/263371-spending-and-tax-deal-ends-crude-oil-export-ban-extends-renewable

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Ridgewood attorney to file suit against makers of hoverboards

Hoverboards

December 14,2015
the staff of the Ridgewood blog

Ridgewood NJ, A Ridgewood attorney says that he is planning on filing a class action lawsuit against the manufacturers and distributors of hoverboards a this years popular holiday gift.

Attorney Joe Santoli tells the Ridgewood blog that he plans to file the suit against hoverboards in New Jersey, New York and California. Whats a Hoverboard you ask ? Hoverboards are a motorized, two-wheel, skateboard-sized vehical that users stand on. They have been a very hot gift item with millennials.

Santoli’s suit claims that hoverboards are unreasonably dangerous because they use lithium batteries that are “notoriously unstable” and “prone to fire.” He says that there have been numerous reports of fires related to the boards. Santoli claims that there have been 10 Hoverboard fires this year .

Santoli is looking to talk to purchasers of ALL hoverboards since they ALL have the potential to cause serious bodily injury due to not only the fire risk but also to the inherent instability of riding them. He can be reached at 201-926-9200 .

The U.S. Consumer Product Safety Commission is currently investigating reports of hoverboard fires, some of which have been captured on video and gone viral. Spokeswoman Patty Davis called it a high-priority investigation because of the scooter’s sudden popularity.

Earlier this month several airlines have banned the hoverboards in checked or carry-on luggage due to the alleged fire risk.

Santoli’s suit will demand the immediate recall of the hoverboards and refunds of the full purchase price for consumers who bought them.

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The Liquidity Trap That’s Spooking Bond Funds

mother goose

The specter of a destabilizing run on debt is haunting markets

By
JOHN CARNEY
Updated Dec. 13, 2015 3:22 p.m. ET

The debt world is haunted by a specter—of a destabilizing run on markets

Last week, this took on more form even if there weren’t concrete signs of panic. Only one mutual fund manager, Third Avenue Management, has said it would halt redemptions to forestall having to dispose of assets in a fire sale. The rest of the industry has been quick to say that while redemptions are elevated, particularly in high-yield bond funds, there doesn’t seem to be a rush to for the exits.

Still, growing angst comes as the oil-price rout continues and the U.S. Federal Reserve appears ready to raise rates. This has investors worried—and starting to ask the fearful question: “Who’s next?”

Goldman Sachs, for one, put out a note Friday warning Franklin Resources “is most at risk” given the large high-yield holdings of its funds, poor performance and large outflows. On Friday, its shares fell sharply. Meanwhile, there were unusually large declines Friday in the value of exchange-traded funds that track high-yield debt.

The idea of a “run” on mutual funds might sound strange. Typically, runs are associated with highly leveraged banks engaged in maturity transformation, funding long-term loans with short-term debt. Nearly all the programs designed to avoid destabilizing runs—from deposit insurance to the Fed’s discount window to liquidity requirements—are built for banks.

https://www.wsj.com/articles/the-liquidity-trap-thats-spooking-bond-funds-1450028193

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Upgrade Your Workers’ Skills with State Funding

mike_rowe_dirty_jobs
December 5,2015
the staff of the Rmidgewood blog

Ridgewood NJ, Many state governments, including NJ, have funds set aside to train your workforce at no cost to you. The intent is to create a better skilled workforce that will translate into better productivity and increased profitability for these companies.

These extraordinary state programs allow you to realize income with no strings attached and without deviating from your company’s day-to-day activities. These programs are intended for most companies regardless of size.

In today’s economy, trained and effective workers can mean the difference between a competitive business and an extinct business. The Customized Training initiative is a component of the Workforce Development Partnership program and is funded by a small allocation from employers and workers.
TNT Educational Services is in the business of securing government funding by way of training grants and offering a wide range of training classes targeting an increase of productivity at no cost to the company. Bergen IT LLC (www.bergenit.net) is partnering with TNT Educational Services (www.tntedu.com) in order to become a provider of technology training.

To Request additional Information, please call Bergen IT at – 201-689-1823 or email[email protected]