(Corrects euro bond holdings in ninth paragraph in story that was published on May 4.)
Norway
The U.S. trade deficit rose in March at the fastest rate in 10 months. A rise in consumer goods lifted imports to a record level, outpacing a solid gain in U.S. exports.
The Commerce Department says the trade deficit widened to $51.8 billion in March, up from $45.4 billion in February. Imports rose 5.2 percent to a record $238.6 billion, reflecting more foreign oil, autos, cell phones and clothes.
Exports increased 2.9 percent to $186 instant payday loan.8 billion. Sales to Europe reached an all-time high despite the region’s debt crisis.
Economists caution that export growth, a bright spot for the U.S. economy, could slow in coming months if more European countries fall into recession.
UPDATED at 3:30 p.m. with federal indictment.
ST. CHARLES • A federal indictment charging the founders of an auto service contract company with various crimes was unsealed just hours after one of the brothers at the head of US Fidelis pleaded guilty to state fraud and stealing charges.
The federal indictment unsealed this afternoon charges Darain Atkinson and his brother Cory Atkinson with two counts of filing false tax returns and one count of conspiracy to commit mail and wire fraud.
Just three years ago, the brothers were self-made millionaires with palatial homes, fleets of exotic cars and more than 1,100 employees working at the Wentzville headquarters of the auto service contract company they founded, US Fidelis.
But prosecutors say that the Atkinsons got more than $71 million from US Fidelis and its predecessor from 2006 through 2008, and used most of the money for personal expenses, including luxury boats and vehicles and multi-million dollar homes in St. Charles County, Lake Tahoe and the Cayman islands.
They never reported the millions received in 2006 and 2007 as income, prosecutors said.
Earlier in the afternoon, Darain Atkinson pleaded guilty to insurance fraud, stealing and unlawful merchandising practices in the St. Charles County courtroom of Circuit Judge Jon Cunningham. Eleven other charges against Atkinson were dropped. Prosecutors recommended a sentence of eight years. Sentencing was set for July 16.
Darain Atkinson’s attorney, Scott Rosenblum, said that sentencing in the state case would not happen until the federal matter is resolved, and will likely result in no additional prison time.
“He’s done everything he can not only to accept his responsibility, he’s surrendered everything he’s owned to make things good,” said Rosenblum flexcheck cash advance.
In the 14 state charges originally filed against Darain Atkinson, 47, who was president of US Fidelis, and 13 counts against Cory Atkinson, 42, the company’s vice president, prosecutors allege that their company intentionally cheated consumers by:
• Keeping refunds they owed customers who canceled coverage.
• Charging fees higher than authorized in sales contracts.
• Lying during sales pitches about limitations on coverage and caps on claims paid, and falsely suggesting to consumers that US Fidelis was affiliated with automakers and dealers.
• Selling insurance without a license when it peddled so-called product warranties, a form of vehicle coverage that is conditional on the purchase and use of certain auto additives.
US Fidelis collapsed in late 2009. Last month in a proposed legal settlement filed in bankruptcy court in St. Louis, the company agreed to pay $1.45 million to 556 former company employees.
Cory Atkinson’s state case is pending and a trial is set for September.
Missouri Attorney General Chris Koster attended Darain Atkinson’s hearing. Koster said afterwards that since the Atkinson’s were indicted, his office has received fewer complaints about other vehicle service contract providers.
“I think the indictment of US Fidelis sent a shockwave through this industry,” he said.
Bank of England Chief Economist Spencer Dale said U.K. inflation may not slow as fast this year as the central bank has forecast as tensions in the Middle East push up oil prices.
The Monetary Policy Committee
MADISON, Wis. — Apple’s latest iPad drew the customary lines of die-hard fans looking to be first, and entrepreneurs looking to make a quick profit.
Many buyers lined up for hours, and in some cases overnight, as the tablet computer went on sale in the U.S. and nine other countries. They did so even though Apple started accepting online orders a week ago.
The new model comes with a faster processor, a much sharper screen and an improved camera, though the changes aren’t as big as the upgrade from the original model to the iPad 2.
As with the previous models, prices start at $499 in the U.S.
“I don’t think it’s worth the price, but I guess I’m a victim of society,” Athena May, 21, said in Paris.
Dan Krolikowski, 34, was first in line at a mall in Madison, Wis. He arrived 14 hours before the store’s opening and was buying an extra one to sell on the “gray market.”
“Last year I sold one on eBay and made over $500 in profit,” Krolikowski said, leaning back in a reclining lawn chair he brought. “I’m hoping to do that again this year.”
Those who ordered iPads online started getting them delivered Friday. However, Apple now says there’s a two- to three-week shipping delay for online orders. There’s also demand in countries where the new iPad isn’t available yet.
In Hong Kong, a steady stream of buyers picked up their new devices at preset times at the city’s sole Apple store after entering an online lottery.
The system, which required buyers to have local ID cards, helped thwart visitors from mainland China, Apple’s fastest growing market. A release date in China has not yet been announced. Apple will begin selling the iPad in 25 additional countries next Friday, mostly in Europe.
At the flagship Apple Store on New York’s Fifth Avenue, the composition of the line, and the way many customers were paying for two iPads each with wads of cash, suggested that many of the tablets were destined to be resold abroad.
About 450 people lined up outside Apple’s Ginza store in downtown Tokyo. Some had spent the night sleeping outside the store.
Dipak Varsani, 21, got in line in London at 1 a.m. Thursday and said he was drawn by the new device’s better screen.
“You’ve got clearer movies and clearer games,” he said. “I use it as a multimedia device.”
Despite competition from cheaper tablet computers such as Amazon.com Inc.’s Kindle Fire, the iPad remains the most popular tablet computer. Apple Inc. has sold more than 55 million iPads since its debut in 2010.
Apple says the iPad is propelling us into a “post-PC era,” with computers that work very differently from the traditional laptops and desktops.
Canada
The ruling this week overturning a new state fund for science startups is likely headed to higher court.
Attorney General Chris Koster said Wednesday he plans to file an appeal of a Cole County judge’s ruling that declared the Missouri Science and Innovation Reinvestment Act to be unconstitutional.
Circuit Judge Dan Green tossed out the law in a ruling late Monday, saying it was invalid because lawmakers included a “contingency clause” when they passed it last fall, requiring a broader tax credit reform bill to be passed before MOSIRA could take effect. The tax credit bill never passed, and opponents of MOSIRA sued when Gov. Jay Nixon started implementing the science fund no fax pay day loan.
In a statement, Koster said MOSIRA is too valuable to let die on a technicality.
“(MOSIRA) is an important economic development tool that can bring high-tech jobs to Missouri and preserve jobs that are already here,” he said. “I don’t want to see important job-creating legislation fail. We intend to appeal this matter to its conclusion.”
Supporters of MOSIRA have said they also plan to push for a clean up-or-down vote on the matter in the General Assembly this session.
Picture it: Save for a few disposable point-and-shoots, Kodak is exiting the camera business.
Eastman Kodak Co. said Thursday that it will stop making digital cameras, pocket video cameras and digital picture frames in a move that marks the end of an era for the beleaguered 132-year-old company.
Founded by George Eastman in 1880, Kodak was known all over the world for iconic cameras such as the Instamatic. For the last few decades, however, the company has struggled. It was battered by Japanese competition in the 1980s and failed to keep pace with the shift from film to digital technology.
The company sought bankruptcy protection last month in a case that covers $6.7 billion in debt. It has a year to devise a restructuring plan. Citigroup Inc. was approved to lend the company $650 million to continue operating.
Exiting the digital camera business is especially poignant for Kodak. In 1975, using an electronic sensor invented six years earlier at Bell Labs, a Kodak engineer named Steven Sasson created the world’s first digital camera. It was an 8-pound, toaster-size device that captured low-resolution black-and-white images.
Reached at home Thursday, Sasson told The Associated Press that seeing Kodak exit the business is “a bit sad” but part of a transition facing all companies that use evolving technology.
“The average person probably owns more digital cameras than they realize,” he said. “It’s just the reality that digital imaging is a part of our lives and you can capture images in a lot of different ways. There’s a lot of choices people have, cellphones being one of them.”
Through the 1990s, Kodak spent some $4 billion developing the photo technology inside most of today’s cellphones and digital devices. But fearing that it might cannibalize its celluloid film business, Kodak waited until 2001 to bring its own digital cameras to the market. By then, it faced strong competitors like Sony Corp. and Canon.
These days, digital camera sales are suffering as consumers increasingly take photos on smartphones. Certain smartphone makers such as LG, Nokia, Motorola and Samsung have agreed to pay Kodak to license its digital camera technology, while companies like Apple are fighting its patent claims.
Before Thursday’s announcement, Kodak had already been trying to shrink its product line and sell in fewer retail venues, but as sales declines worsened, the company saw no way to make the business profitable.
“We made the logical conclusion that there was no clear path to profitability, and we have to focus on generating profits at this point,” said Kodak spokesman Chris Veronda.
Kodak sees home photo printers, high-speed commercial inkjet presses, workflow software and packaging as the core of its future business. Since 2005, the company has poured hundreds of millions into new lines of inkjet printers. Once the digital camera business is phased out, Kodak said its consumer business will focus on printing.
Heather Mills, the former model who was once married to Paul McCartney, testified forcefully Thursday that there was no doubt her phone had been hacked by a U.K. journalist.
Speaking before a judge-led inquiry into British media ethics, Mills said dozens of messages between her and the former Beatle were intercepted by a journalist working for British newspaper group Trinity Mirror. She said the incident happened after a fight she and McCartney had had in January 2001, when McCartney, then her boyfriend, bombarded her with phone calls.
“There were about 25 messages, all asking for forgiveness, (asking:) ‘Would I come back?’” Mills said. “One of them said: ‘Please forgive me,’ and he sang a little ditty of one of his songs into the voicemail.”
She said she found it strange that the messages were listed as having been listened to even before she had accessed them, but said she didn’t realize what had happened until the Mirror journalist _ unnamed for legal reasons _ called her up and confronted her with details of the battle.
“I said: ‘There’s no way that you could know that unless you have been listening to my messages,’” she told the inquiry. “And he laughed.”
The messages left for Mills by McCartney are at the center of the allegations against CNN star interviewer Piers Morgan, who was editor of the Daily Mirror tabloid at the time. Morgan wrote in 2006 that he had once been played an apologetic message left by McCartney for Mills, describing it in detail and noting that McCartney “even sang ‘We Can Work It Out’ into the answer phone.”
Called before the U.K. inquiry last year, Morgan denied ordering anyone to hack a phone or writing stories based on hacked messages. He acknowledged listening to Mill’s voicemail message but stubbornly refused to say anything about how he had gotten it.
Morgan even left open the possibility that the voicemail had been played to him with Mills’ approval, but Mills said Thursday that was impossible.
“Never,” she said. “Never ever.”
Mills married the popular McCartney in 2002 and had a daughter with him before they divorced in 2008. She sought and got a substantial divorce settlement, becoming a tabloid hate figure after they separated. She is a fierce critic of tabloid journalists in general and Morgan in particular.
Morgan, who has become a media celebrity in the United States since taking over from Larry King, has returned the favor, casting aspersions on her credibility and calling her a “monster.”
The fracking-led oil and natural gas boom that’s received widespread attention in the mainstream press has moved to a new medium: reality TV.
"Bayou Billionaires," a new reality show on Country Music Television, follows the lives of the Dowdens, a Louisiana family that’s struck it rich off natural gas.
"I bought me a new pickup" says Gerald Dowden in the trailer posted on CMT’s website. "And I bought a dually," says his wife Kitten, referring to a pickup with four tires on the rear axle. "I got the special edition Polaris," says Gerald, clearly excited about his all-terrain vehicle. "She put the pool in."
"We got a new hot tub," says Kitten. "Jet skis," says Gerald.
"I have 50 hounds" and one horse, he adds. "But my wife has nine. We’re spending it, that’s what it’s for."
Ohio set to see oil boom thanks to fracking
Billionaires may be stretching it, but the Dowdens sure have come into some serious cash.
Thanks to new drilling technology, a small Texas firm called Exco () was able to put four new natural gas wells on the Dowden’s 80 acres of land outside Shreveport, La. in the last three years.
Each month, the wells generate a royalty check for the Dowdens that can be as high as $40,000. The wells are expected to produce for 16 to 20 years. And their royalty checks could grow considerably.
Exco, has plans to add up to 16 wells on the Dowden’s land over the next few years, Gerald says in an interview with CNNMoney.
Their royalties are also pegged to the price of natural gas, which is currently at a decade-long low. But if natural gas returns to the the highs it hit in 2008 and the other wells are drilled, the Dowdens could potentially see a check for nearly a million dollars a month.
"We’re going to make a lot of money," says Gerald.
Not that the family was poor before. The Dowdens previously had four smaller natural gas wells on their land, which used to generate royalty checks of between $3,000 and $5,000 a month. Plus, they own a small construction business that employs around 20 people.
Striking it rich hasn’t seemed to change their work pattern that much — Kitten is still the bookkeeper at the construction company, and Gerald says he’s yet to officially retire.
But in addition to their new toys the couple has carved out time for three cruises over the past year, one to the Persian Gulf.
Opponents of hydraulic fracturing, or fracking for short, fear the process of injecting pressurized water and chemicals into the ground to ease the extraction process is contaminating the water business cards design. Others with gas wells on their property have regretted the decision, saying the compressors are loud and the wells produce nauseating fumes.
But the Dowdens say they aren’t worried. And they say noise or fumes aren’t a problem either.
"They’re a community-oriented company," said Gerald. "They’re really safe."
The reality show, which was filmed over an eight-week period last year, profiles the adventures of not just Gerald and Kitten but their extended family.
Gerald says neither their new wealth nor having a television crew on their land has strained relations with their neighbors, who are out of eyesight anyway.
"They’re excited, they all want to be in it," says Kitten.
Despite claims by the show’s producer and the Dowden family that the program doesn’t aim to celebrate or exploit redneck stereotypes, clips on CMT’s website leave some room for doubt.
"I love my new teeth," says the couple’s daughter Chantal in the episode trailer, which is also filled with lots of ATV riding and yee-haws partially set to a steel guitar soundtrack.
Obama’s energy plan: The winners, and winners
"She really needed ‘em," responds Chantel’s boyfriend in the trailer, which gives his name as Carl, Albert or Jimmy, "depending on what part of the country," he’s in, and where Gerald affectionately calls him the "burnout biker."
Still, show producer Brian Flanagan says the aim was to simply profile a tight- knit family that’s come into some money.
"I wasn’t trying to make a redneck show, I was trying to make a sweet show," says Flanagan, who got the idea from an employee who has family in the area and saw first hand how normal people were getting rich off the energy boom.
Flanagan, whose company is behind other reality shows including the Discovery channel’s "Moonshires" and TLC’s "Long Island Medium," says the Dowdens fit the part perfectly.
"They love their property, they love each other, and they are having a blast together thanks to their newfound fortune," he says.
He notes the show is devoid of some of the more unsavory aspects on reality television.
"I don’t need anyone flipping a table over on this show," he says. "It’s a show for the whole family, not a train wreck."
Bayou Billionaires’ third episode airs Saturday at 9 PM on Viacom’s (, Fortune 500) CMT.
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