The Ritz-Carlton, Laguna Niguel, 24
Island Hotel Newport Beach (former Four Seasons), 18
St. Regis Resort, Monarch Beach, 3
Montage Laguna Beach, 2
The Resort at Pelican Hill (Newport Coast), 1

The Ritz-Carlton Laguna Niguel has the longest tenure of any California resort on the list - 24 years. The Resort at Pelican Hill jumped onto the top tier in its first year of existence. The St. Regis held on to its top mark despite going through bankruptcy proceedings.

In all, 17 Southern California hotels and two restaurants received the AAA Five Diamond Award for 2010. Nationwide, the mark went to 113 lodgings and 52 restaurants. The AAA’ uses full-time, professional inspectors evaluate and rate who rate 58,000 lodgings and restaurants.

The other Southern California hotels ton the list and number of consecutive years:

Raffles L’Ermitage Beverly Hills, 9
The Beverly Hills Hotel and Bungalows, 2
The Peninsula Beverly Hills, 17
Four Seasons Resort Aviara, Carlsbad, 11
The Lodge at Torrey Pines, La Jolla, 8
Four Seasons Hotel Los Angeles at Beverly Hills, 9
The Ritz-Carlton, Marina del Rey, 18
Ojai Valley Inn & Spa, 4
The Grand Del Mar, San Diego, 1
Four Seasons Biltmore Santa Barbara, 5
Simpson House Inn, Santa Barbara, 13
Four Seasons Hotel Westlake Village, 2

AAA started listing accommodations in the early 1900s and began ratings in 1937.

Post from: OC Business News

Every year the IRS puts out its list of unclaimed refunds in hopes the taxpayers will claim the checks that were returned as undeliverable by the U.S. Postal Service.

“We are eager to get this money into the hands of taxpayers, so don’t delay if you think you are missing a refund,” said IRS Commissioner Doug Shulman. “The sooner you update your address information, the quicker you can get your refund.”

The IRS has identified 1,383 taxpayers who live in Orange County — or did when they filed their taxes but may have since moved.  Their refunds total more than $1.3 million.  Nationwide the IRS is seeking 107,831 taxpayers who are owed a combined $124 million.

To find out if you have money coming, go to “Where’s My Refund?” at www.IRS.gov. You have to submit your Social Security number, filing status and the amount of refund shown on your 2008 tax return.  The IRS will provide the status of the refund and, in some cases, will provide instructions on how to resolve delivery problems. You can also change your address online at the same web site.

Taxpayers also can get their refund  information through the IRS’s toll-free number: 800-829-1954.  Be sure to have your Social Security number and other information listed above handy when you call.

To see if you are owed a refund click HERE.

Did you miss this recent Orange County Register business news …

• Court fines, bars former Lantronix executive for fraud
• Trustee demands more info on Freedom Communications bankruptcy
• Freedom Communications hopes for a profit in 2012
• New luxury jet flights from OC to NY area
• Buy.com teams with Amazon — together at last
• U.S. Airways closing JWA maintenance station

Post from: OC Business News

Katherine Nichols, Nicholas’ former personal assistant, sued Nicholas, claiming she was fired after she testified before a federal grand jury investigating the Broadcom co-founder. Nichols was terminated several days after Nicholas was indicted on federal criminal charges involving financial fraud and drugs.

Nichols also sued for gender discrimination by Nicholas and intentional infliction of emotional distress by Nicholas girlfriend, Kim Davis.

In September, Orange County Superior Court Judge Derek Hunt tossed the claims of sexual harassment and retaliation, including the claim against Davis, but let stand two alleged labor violations. Hunt on Thursday reinstated the retaliation and harassment claims against The Management Co., a company partially owned by Nicholas. Hunt apparently thought the company had made a challenge to the claim when, in fact, it had not.

Sima Fard, Nichols’ attorney, said she was happy that the judge reinstated Nichols’ claim and accused Nicholas’ lawyers of misleading the judge.

“The judge is very honorable and I’m confident he’s a very, very fair judge,” she said.

Diane Doolittle, a Nicholas attorney, said the earlier dismissal of claims Nicholas and his girlfriend were not challenged.

“The decision to reinstate certain claims against the company today was based on a pure technicality,” she said. “We will seek an immediate dismissal of the claims against the company based on the judge’s analysis at the prior hearing.”

 Nichols, 39, worked for Nicholas for a year and was fired in June 2008.

Nicholas has pleaded not guilty to 21 federal criminal charges of securities and accounting fraud and to four counts of distributing drugs.

A counter suit against Nichols was filed by Nicholas alleging breach of duties and financial misappropriation.

Post from: OC Business News

Cotton agreed to disgorge $344,976.98 in ill-gotten gains plus $62,629.03 interest. He also agreed to pay a $120,000 fine. The Huntington Beach resident was barred from serving as an officer or director of a public company for 10 years.

The judgment, issued Sept. 29 by U.S. District Judge Andrew Guilford in Santa Ana and announced today, concludes a lawsuit brought in September 2006 by the Securities and Exchange Commission. 

The SEC alleged that Cotton inflated Lantronix’s revenues and earnings by “channel stuffing” — deliberately shipping too many products to distributors while granting them unusual, and undisclosed, payment terms and rights to return unsold product. He also allegedly arranged for Lantronix to loan money to a third party, which then bought Lantronix products from one of the distributors.

As a result, Lantronix overstated its revenues by as much as 21 percent and understated its pre-tax losses by up to 98 percent in the second and third quarters of 2001 and the first quarter of 2002. The fake results appeared in the company’s public reports and in a public stock offering.

Lantronix restated the results in 2002, reducing its previously reported revenue by $7.4 million. The restatement caused the company’s stock to fall from $10 to 36 cents per share.

The SEC alleged that Cotton personally profited through bonuses and by selling stock at artificially high prices.

Lantronix agreed in September 2006 to an SEC order to cease and desist from future securities law violations. That December it paid $15.2 million to settle a shareholder class-action lawsuit over the revenue restatement.

 Read the SEC news release HERE.

Post from: OC Business News

David Buchbinder, the U.S. Trustee’s attorney, spent three hours in a Wilmington hearing room reviewing hundreds of pages of financial information for Freedom’s 50 units. A common thread in Buchbinder’s questioning was that there were gaps in the information the company has provided.

At an earlier proceeding in bankruptcy court, Buchbinder said he believed Freedom’s strategy “seems to be to disclose as little as possible for as long as possible.’’ As a Justice Department official, Buchbinder monitors bankruptcy proceedings to make sure companies fully comply with federal laws.

“What are the assessed tax values for each of these properties?” Buchbinder repeatedly asked Freedom Chief Financial Officer Mark McEachen.

While Freedom said in its filings that it owns real estate worth $40.6 million, the company did not specify the value of each property. Nor did it spell out such assets as furniture or equipment in its properties.

Among its properties, Freedom owns the Orange County Register complex on North Grand Ave. in Santa Ana as well as two office buildings at its headquarters in Irvine.

The company also did not provide any federal or state tax returns in which operating losses would have to be disclosed.

When it came to Freedom’s broadcast properties, Buchbinder’s questions revolved around Freedom’s failure to include several cable stations that are part of its holdings.

McEachen said the revenues from all the properties not enumerated were reflected in the overall total revenue reported in the financial schedules Freedom filed.

Lawyers for the unsecured creditors committee have already indicated they plan to challenge Freedom’s pre-packaged bankruptcy agreement with its lenders. Under that plan, the lenders will take control of the company and the $770 million Freedom owes them will be reduced to $325 million.

The company offered the unsecured creditors, who are owed $300 million, a total of $5 million.

If the company is found to actually have more assets than it has reported thus far, the creditors can use that information to try and get more money from the company.

Buchbinder gave Freedom officials until Nov. 23 to provide the additional information he requested. If he’s satisfied, he won’t ask the company back for more questioning. If he’s not another hearing will be held on Nov. 24.

Earlier stories on the Register and Freedom Communications ..

• Freedom Communications hopes for a profit by 2012
• Freedom clears first bankruptcy hurdle
• Freedom Communications faces first major bankruptcy hearing
• Creditors accuse Freedom of being too secretive
• Freedom Communications tries to keep bankruptcy documents secret
• Register’s parent files for Chapter 11 bankruptcy
• Q&A: What bankruptcy of Register’s parent means
• Register parent in talks with its lenders
• Register’s parent enters critical phase of bank talks

Post from: OC Business News

As part of its efforts to reduce expenses, Irvine-based Freedom said it will close The East Valley Tribune, its Pulitzer-prize winning paper in Mesa, Ariz., by the end of this year.  The paper has struggled for years against the Arizona Republic, the dominant paper in Arizona, as well as the loss of advertising revenues and circulation that has plagued the entire newspaper business.

Freedom also expects to reduce payroll and benefits by 5 percent next year by cutting staff companywide. The company has about 5,100 employees at 33 dailies, 77 weeklies, eight television stations, several magazines and specialty publications and in its interactive business.

Freedom entered voluntary Chapter 11 bankruptcy reorganization Sept. 1 with the agreement of most of its banks.

Under the proposed reorganization plan, the company’s debt would be cut from $770 million to $325 million.  In return, the banks would take over Freedom, getting a 98 percent interest.

Current shareholders, including members of the founding Hoiles family and two private equity firms, would get 2 percent of the shares and warrants that would allow them to buy up to 10 percent.

A group of unsecured creditors who are owed $300 million would share in a total of $5 million. If they oppose the plan and it is approved, they get nothing.

The creditors include some highly-compensated retirees whose pensions were cut off and 5,000 newspaper carriers who won a $28.9 million settlement in a suit against the Register over a claim that they improperly were categorized as independent contractors instead of employees.

In a disclosure statement filed with its proposed reorganization plan, Freedom detailed the difficult financial straits that led it to file for bankruptcy.

The company said revenues declined $111 million — 13 percent — in 2008 and dropped another $115 million — 23 percent — in the first eight months of this year. Operating cash flow fell from $150 million in 2007 to $13 million in the first eight months of this year.

At the same time, the company was facing the payout on Sept. 14 of $28.9 million owed to the newspaper carriers and their attorneys.

By filing when it did, the company was able to take back the money for the carriers that had been held in escrow and include the funds among the assets in the bankruptcy filing.  Attorneys for the carriers, however, claim they are still owed the money.

Although Freedom expects to lose $62.8 million in 2010 and $19.3 million in 2011, the reorganization plan anticipates the company will make an $11.4 million profit in 2012 on revenues of $595.9 million.

“The filing of the plan of reorganization and disclosure statement represents an important milestone in our Chapter 11 case. We are especially pleased that we were able to reach this key step in our restructuring process in just two months,” said Burl Osborne, Freedom’s chief executive, in a statement released by the company. “It brings us closer to successfully completing our debt restructuring and positioning the company for future opportunities and challenges that lie ahead in the rapidly changing media industry.”

Hopes for a quick conclusion to the bankruptcy, however, may be hindered by the unsecured creditors, who feel the company’s $5 million take-it-or-leave-it offer is far too small considering the $300 million they are owed.

They argue that, at the very least, the Hoiles family and other current shareholders should not get 2 percent of the company since in a typical bankruptcy, the value of existing shares is wiped out.

The employees whose $17 million in pensions were cut off — about 100 higher-paid current and retired executives and their survivors — feel it is unjust that they should be deprived of retirement funds after contribuing to the company for so many years.

“The very people who built this company and made it strong are the ones most affected,” said Alan Bell, former Freedom CEO. “I think it is wicked and immoral to do this to people who did so much.”

Filing of the proposed reorganization plan and disclosure statement were key steps in the bankruptcy. Still to come: U.S. Bankruptcy Judge Brendan Lenihan Shannon must approve the disclosure statement, which is an explanation of the proposed plan.  The plan then must be sent out to the creditors for a vote before the company can complete its reorganization and exit bankruptcy.

Earlier stories on the Register and Freedom Communications ..

• Freedom clears first bankruptcy hurdle
• Freedom Communications faces first major bankruptcy hearing
• Creditors accuse Freedom of being too secretive
• Freedom Communications tries to keep bankruptcy documents secret
• Register’s parent files for Chapter 11 bankruptcy
• Q&A: What bankruptcy of Register’s parent means
• Register parent in talks with its lenders
• Register’s parent enters critical phase of bank talks

Post from: OC Business News

Post from: OC Business News

And today, Buy.com began offering “Checkout by Amazon” and “Amazon PayPhrase” to let customers use their Amazon accounts to pay their bills.

Both retailers sell virtually the same stuff. So has Buy.com caved to its larger competitor?

Not quite, said Neel Grover, Buy.com’s president and chief executive officer.

“Although we do have similar businesses (millions of products with thousands of retail sellers selling in our own marketplaces), this was truly the first opportunity for a win-win partnership. Our loyal customers will have access to a great new alternative payment option, and we will make the Buy.com shopping experience more seamless for the Amazon customer who shops on Buy.com,” he said in an e-mail response.

Buy.com just wants to offer its 6 million customers the most options when it comes to paying for the goods. Buy.com also accepts PayPal, Google Checkout, BillMeLater and other assorted payments.

“Buy.com is adding these solutions to offer our customers an array of options and, in turn, we’re delivering a vast new buying audience to Amazon Payments,” Grover added.

Amazon Payphrase, which launched today, lets consumers remember a phrase to get to shipping and payment options on an Amazon account. Checkout by Amazon is a button Buy.com customers will see when they go to buy a product.

Happy together.

Did you miss these tech stories?

What does a PC guy think about the new Microsoft store?

AT&T improves wireless service in 5 O.C. cities

Boost Mobile boosts Sprint’s quarter with new subscribers

Who is in line at the Microsoft Store?

We’ve got Verizon’s new Droid! Watch the video

Which is faster - a router’s wired or wireless Internet connection?

Cox to begin testing TiVo adapter this week — only in O.C.

Microsoft Store debuts Thursday

Cable TV bills will go up if Fox, CBS get their way

Broadcom’s new 5-in-1 DVR chip

Microsoft’s first O.C. store opens Thursday — will you be there?

Roku adds 2 more toys for watching Web TV on home TV

Some Time Warner Cable modems have major security flaw

Post from: OC Business News

The airline, which was created in September 2005 when US Airways Group merged with America West Airways, said it was not cutting back on its total maintenance crew but rather will be redistributing the mechanics across its system.  The closure won’t happen before the first quarter of 2010 and it was “too early to know” how many mechanics will be moved, the company said.

Today’s announcement was part of an overall restructuring under which US Airways will concentrate on its three hubs in Charlotte, Philadelphia and Phoenix and its service at Washington’s National Airport. It designed to stem the financial bleeding that saw the airline lose $800 million in 2008 with another large loss is expected this year.

Altogether the airline said the changes will mean the furlough of up to 1,000 employees including 600 airport passenger and ramp service employees, 200 pilots (165 from US Airways prior to the merger and 35 former America West pilots) and 150 flight attendants (120 US Airways and 20 from America West.)

“By concentrating on our strengths we will be better positioned to return US Airways to profitability, which will result in a more consistent experience for our customers, better returns for our shareholders and greater job stability and career opportunities for our employees,” said Chief Executive Doug Parker in announcing the changes.

Parker detailed these other changes in a letter to employees:

• Reducing Las Vegas (LAS) flights from 64 to 36 daily departures by February 2010 as a result of high fuel prices and continued weak demand associated with Las Vegas.
• Closing Colorado Springs (COS) and Wichita (ICT) and moving that flying to more profitable routes across our four focus cities.
• Redeploying our 15 E-190 aircraft on routes between Boston and Philadelphia and on the Boston -LaGuardia (LGA) leg of the US Airways Shuttle.
• Reducing non-stop flights from Boston (BOS) to the Caribbean at the end of the peak spring travel season in May.
• Suspending five European destinations from Philadelphia: Birmingham, U.K.(BHX); London Gatwick, U.K. (LGW); Milan, Italy (MXP); Shannon, Ireland (SNN); and Stockholm, Sweden (ARN), which have not shown economic resiliency or profitability in the current environment. At the same time we announced. US Airways will transition seasonal service to Brussels, Belgium (BRU) and Zurich, Switzerland (ZRH) to year-round service effective in late 2010.
• Returning our Philadelphia-Beijing (PEK) flight authority to the Department of Transportation (DOT) until economic conditions improve, while retaining the option to reapply for this authority in the future.
• Rightsizing and repositioning our crew bases in Philadelphia, Charlotte, Phoenix and Washington, D.C. by closing our crew bases in Boston, LaGuardia and Las Vegas. The Las Vegas and LaGuardia bases will close Jan. 31, 2010, and Boston will close May 2, 2010.

Read the US Airways press release HERE.

Did you miss these recent airport and airline stories …

Post from: OC Business News

Thanh Viet Jeremy Cao, whose business was Phoenix Financial Management Group in Lake Forest, filed fraudulent forms with the IRS on behalf of six clients “that grossly overstate his customers income and withholding to get grossly inflated tax refund checks,” according to a complaint filed Tuesday in U.S. District Court in Los Angeles.

Cao used a theory called “redemption” or “commercial redemption” — which prosecutors called a “rejected tax defier theory.” This theory claims that the U.S. Treasury keeps millions in a secret treasury account for each taxpayer.  The secret account can be used to pay a taxpayer’s debts and tax liabilities if a taxpayer sends the IRS and banks certain documents, the theory goes.

“Cao’s theory is complete fiction,” the complaint reads.

Cao is one of seven individuals from across the country who used this “redemption” theory in an attempt to get millions in refunds, according to the U.S. Department of Justice. The three filed in Los Angeles, including Cao, requested a total of $562.4 million in bogus refunds.

Those using the “redemption” theory tell their customers that they can help them gain these “secret funds” and then file a series of false IRS forms, including tax returns, amended returns, and withholding forms, according to the IRS and the Justice Department.  Altogether, the redemption scheme participants, including the seven who were sued this week,  have requested a total of $3.3 trillion in fraudulent refunds, according to IRS figures.

“The scope of the misconduct alleged in these lawsuits is staggering,” said John A. DiCicco, Acting Assistant Attorney General for the Justice Department’s Tax Division.

Read Cao’s complaint here.

Did you miss these business stories?

Post from: OC Business News