Business news briefs for August 5, 1998

A summary of the day's top financial news

Local

* LV COMPANY HURT BY GM STRIKE, BUT TURNS A PROFIT -- American Pacific Corp. of Las Vegas reported a third-quarter profit of $200,000, or 2 cents per share; an improvement from a loss in the year-ago quarter of 2 cents or $100,000. Sales of $13.1 million were up from $12.8 million. The company makes chemicals for rocket motor fuel, airbag inflators and fire extinguishers. AP said the General Motors strike cut its shipments of sodium azide to airbag makers during the third quarter and the fourth quarter that is now under way. Azide sales of $2.8 million were down from $3.3 million in the year-ago quarter. Nine-month sales of $38.5 million were up from $30.5 million a year earlier, while net income before a special charge was $2.8 million compared to a loss of $1.7 million a year earlier.

* FACING SCRUTINY, MORTGAGE OWNER FILES FOR BANKRUPTCY -- A woman who voluntarily surrendered her mortgage license last month has filed for bankruptcy. Anita Wizeman, dba Moneyline Financial Inc., 2912 Lamesa Dr., Henderson, filed for Chapter 7 bankruptcy July 31. Assets and liabilities were not listed. State regulators had scheduled a license revocation hearing in July after receiving a half-dozen complaints about Moneyline. But Wizeman surrendered the license voluntarily. Among the state's allegations was that Wizeman converted funds for personal use. Attempts to contact Wizeman for comment failed.

* WELLS FARGO SUED OVER OVERDRAFT FEE POLICY -- A California man has filed a class action lawsuit accusing Wells Fargo & Co. of processing checks in a way that allows the bank to unfairly charge customers for overdraft fees. When the bank receives multiple checks drawn on a single account on the same day, it always processes the largest check first, the suit says. The practice can result in multiple overdraft charges. "They don't tell you this when you open a checking account at Wells Fargo," said plaintiffs' attorney Pierce Gore. "It generates the maximum amount of overdraft charges for the bank." For example, if a customer writes checks for $20, $30 and $105, but has only $100 in his account, Wells will process the $105 check first and charge the customer three overdraft fees, the suit alleges. A Wells Fargo spokesman declined to comment Tuesday, saying he had not seen the lawsuit. In recent years, banks have charged more fees on retail accounts. "Wells Fargo has been one of the most aggressive banks in charging fees," said Earl Lui, a lawyer with Consumers Union in San Francisco. "They are one of the leaders in coming up with new fees for everything - from ATM fees to charging if you call customer service too many times."

* DEVELOPMENT DISPUTE LANDS IN COURT -- RDN No. 1 Limited sued Las Vegas Paving in Clark County District Court, seeking to dissolve a partnership and alleging the company mismanaged funds in developing a subdivision in North Las Vegas. The partnership was formed in 1991 to develop the Rancho Del Norte subdivision. RDN says Las Vegas Paving has received more than $20 million in payments, but RDN believes some of those payments were not related to the partnership. RDN seeks appointment of a receiver, full accounting of funds and reconveyance of the remaining land in the partnership back to RDN. Attempts to contact Las Vegas Paving officials failed.

* LV DEVELOPER'S PROFIT INCREASES -- Saxton Inc., a Las Vegas real estate development company, today reported a second-quarter profit of $1.8 million, or 24 cents per share, up 7.1 percent from the 1997 quarter. Revenue of $21.9 million was up 35.1 percent. Saxton cited higher revenue from home sales, commercial real estate sales and construction contracts. Besides building in Las Vegas, Reno and the Salt Lake City areas; Saxton said it plans to expand to the Phoenix area.

* GAMING FIRM BUYS BACK STOCK -- Hollywood Park Inc. of Inglewood, Calif., a casino and horse racing company, today said it will buy back up to 20 percent of its 26.2 million outstanding shares.

To contact Sun Business Editor Steve Green, call 259-4083 or e-mail [email protected]

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