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Market still happy: Will it be an eighth straight up day? The Dow has picked up another 20 points in early trading.
Karatz gets creamed: The former CEO of KB Home told one of his executives to deny that any backdating shenanigans were taking place, according to court testimony. The executive, former HR director Gary Ray, pleaded guilty last year and agreed to testify against Karatz. From the LAT:
When the company launched an internal investigation in 2006, he said Karatz told him "to put the best interests of the company ahead of the truth," and deny that they had carefully selected dates when the stock price was low to make options more valuable. The scheme had enabled Karatz to make more than $6 million in additional profit from his options, prosecutors say.
Madoff was beaten up: There were lots of conflicting accounts when this story first came out, but sources now tell the WSJ that the scamster was indeed treated for a broken nose, fractured ribs and cuts to his head and face.
The current inmate said Mr. Madoff's assailant was a beefy man serving time for a drug conviction. The alleged assailant's mother said in an interview her son had not mentioned any scuffle with Mr. Madoff but that he had been a body builder and held a black belt in Judo until he was injured in a shooting in 2002. While behind bars he has regained strength and gotten back into shape, she said.
Ponzi suit settled: Paul Heckler and his OC firm Yosemite Capital Management will pay more than $100,000 in connection with SEC charges that clients had been placed into a Ponzi scheme run by onetime Democratic fundraiser Norman Hsu. (LAT)
DWP commission meets on rate hikes: They'll be reviewing Villaraigosa's plan to charge households up to 28.4 percent more for their power, part of the mayor's effort to use more renewable sources. (LAT)
Solar project advances: California regulators are recommending approval of a giant solar plant in the Mojave Desert. Still needs to be signed off by the California Entergy Commission. The feds have offered the project's builder a $1.37 billion loan guarantee. (NYT)
New service for Virgin America: The Richard Branson-owned airline will add daily flights from LAX to Orlando and is applying for flights from LAX to Toronto. But it's also eliminating service from SF to OC. (USA Today)
Wellpoint shy on charity: The insurance giant's 2007 pledge to spend $30 million on helping the uninsured is falling far short, reports the LAT, though the company disputes that.
WellPoint's public records indicate that from 2007 to 2009 the foundation gave less than $6.2 million in grants targeted specifically at helping uninsured Americans get access to coverage and care -- barely one-fifth of what was promised and just 11% of the charity's total giving over the last three years. "It was just not something that the company really wanted to do," said one former executive, who, like others interviewed for this story, asked not to be identified out of concern that discussing WellPoint could have adverse career consequences. "So it went by the wayside."
Porsche, Lincoln tops in dependability: The new numbers from J.D. Power have Porsche rising from 10th place in 2009, while Lincoln improved from seventh. Four Toyota vehicles led in 19 separate categories, the most of any brand. (Bloomberg)
New boss at Barnes & Noble: CEO Steve Riggio is being replaced by William Lynch, president of the struggling chain's Web division. News reports indicate that the switch is a surprise. (NYT)
Mark Lacter created the LA Biz Observed blog in 2006. He posted
until the day before his death on Nov. 13, 2013.