Federal regulators want Tukwila investing guru Wade Cook and his financial seminar service held in contempt for failing to refund millions of dollars to customers. The Federal Trade Commission has asked a federal judge to order Cook and his service to pay $5 million to a refund program for people who lost money following his advice. “They’ve continued to make claims of returns of 20 percent per month if you take their course, and they just don’t have proof of that,” said Bob Schroeder, a director with the FTC’s Seattle office.
Lynnwood-based City Bank on Friday announced a cash dividend of 8 cents a share. The payment is unchanged from the dividend paid the previous quarter. It will be paid on March 29 to shareholders of record as of March 15.
Airlines are reassuring frequent fliers that they can still bypass long lines despite the government’s decision to eliminate special security checkpoints for elite travelers at some airports. The express lines leading up to security checkpoints are still in place, airline officials note, allowing favored fliers to reach the screeners and X-ray machines faster than other passengers.
Diageo’s liquor cabinet is proving no home for the Whopper. British drinks group Diageo PLC said Friday it is ready to sell or spin off Burger King Corp., and that it expects next month to start approaching potential buyers. Diageo will decide soon how best to uncouple itself from Miami-based Burger King, said spokeswoman Kathryn Partridge. British analysts estimate Burger King to be worth around $2.3 billion, with some suggesting that the business could sell for almost twice that amount.
Circuit City Stores Inc. warned Friday that fourth-quarter earnings for its Circuit City Group will be below Wall Street expectations, and said it planned to spin off its profitable CarMax division as a separate company later this year. The announcement sent Circuit City shares plummeting nearly 30 percent, or $7.04 a share, to close at $16.55 in trading on the New York Stock Exchange. CarMax, which is entirely owned by Circuit City, currently trades as a tracking stock designed to reflect the used car seller’s performance. Its shares fell 8.8 percent, or $2.51, to close at $26 on the NYSE. Circuit City president and chief executive W. Alan McCollough said the spinoff would enable investors to analyze each business on its own merits.
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