News-Press from Fort Myers, Florida • Page 57

JENNIFER L. GRANT Business Editor 335-0393 Monday-Friday Visit www.news-press.com SECTION Business SUNDAY, AUGUST 8, 1999 The News-Press nn mho; a n. FLQmsn fifes can mm rauw oned for a new scam by Cuba's Fidel Castro. And, sometimes, low-profile fugitives are all but forgotten. Victor Incendy, ex-CEO of Cascade International for example, is wanted for allegedly defrauding shareholders of $170 million.

He hasn't been seen or heard from since 1991. Federal authorities say they're "actively seeking" Incendy, but the trail clearly has grown cold. 'If almost eight years, and still no Victor," said John Meunier, the FBI case agent on Cascade. "We follow leads as they come in, but to be honest, there haven't been many." The 65-year-old Incendy was last reported to be in South Africa, according to an FBI wanted poster on the Internet. 100 counts of conspiracy, money laundering and securities, mail and bank fraud.

If convicted, he faces a maximum sentence of more than a hundred years in prison. His ex-wife Jeanette also fled but was arrested in 1995 while living under a new name in Tequesta, Florida. She pleaded guilty to tax and conspiracy charges and in 1997 was sentenced to seven years in prison, a term she's serving in a federal facility in Florida. Through her lawyer, Richard Lubin, she declined to be interviewed. "Nobody seems to know where Victor is, including Jeanette," Lubin said.

It's "logical" to assume Incendy, a Hungarian citizen, is holed up in his native country, Bloomberg News Service BOCAROTAN Money manager Martin Frankel made headlines in early May when he vanished from his Connecticut estate just as hundreds of millions of dollars that insurers gave him were reported missing. That was three months ago and, despite all the publicity, the 44-year-old ex-broker hasn't been spotted since, though the FBI suspects he fled to Europe and Interpol issued a 177-nation alert for him. Still, high-profile financial fugitives have not only escaped the law but eluded its grasp for decades. Mutual fund looter Robert Vesco has evaded U.S. justice since the early 1970s, though lately he's been impris Travelers9 first stop: The I'mmY'1 1 1 ,1..

i. I i More tourists using the Internet to plan their trips By ANNE MITCHELL The News-Press Florida's tourism industry, already battling a trend of shorter stays dubbed "soundbite vacations" and lack of traveler loyalty, is now facing the vigilante consumer. He or she is heavily armed with a computer and modem and in search of trips promising novelty and new experiences. These sawy travelers want their airfare, hotel and meals all wrapped up in a handy package, and they want it at the lowest price possible. But while the Internet has empowered the consumer, it's also a great marketing tool for businesses that understand how to harness its power and avoid its pitfalls.

Dr. Dale Brill, founder of sunsavers.com, a reservations Web site, told tourism professionals at the annual Governor's Conference on Tourism in Orlando last week that 26 percent of Americans use the Internet daily. That's 64 million people. Florida ranks third next to California and Texas for highest Internet users, 1.7 million, according to the Department of Commerce, Brill said, addressing an overflow crowd in one of the conference's workshop sessions. The Internet session was by far the most heavily attended of five workshops offered during the three-day event.

See TOURISM 2E (sraii That "International Crime Alert" hasn't been updated in about two years. The bulletin shows a portly six-footer, with a mustache and blue eyes. The Budapest-born Incendy, using various spellings of his name, has been tracked across much of Europe. He's now believed to be back in Hungary which tends to cooperate with the U.S. only in cases involving dangerous criminals, such as terrorists.

"He is a Hungarian citizen, and that binds our hands," said Meunier, adding that the U.S. often has a "big problem" extraditing accused criminals from the Eastern European nation. Incendy was indicted in absentia in 1994 on more than WEEK IN REVIEW rolls last month on top of the 273,000 hired in June, the Labor Department said. That's more than analysts' expectations of a 206,000 increase. Workers' average hourly earnings rose 0.5 percent last month, after a 0.4 percent increase in June.

The increase in July employment was marked by the first gain in manufacturing employment in almost a year. Russia said Wednesday it is seeking an agreement with bank creditors by year-end to restructure as much as $31 billion in Banks and brokerages all have been working toward Y2K readiness. Their plans range from the drastic, such as access to emergency electricity generators and portable ATM machines, to the routine, such as back-up procedures for all records systems. It makes sense to be prepared for Y2K without overreacting. Here are a few practical suggestions: Ask your bank or brokerage for a written report on its Y2K readiness plan.

Review the plan for details of how they updated and tested their system, and how they plan to back up their records system. Also, review how they will respond to the unlikely possi Nominations sought for Florida retail awards The Florida Retail Federation is seeking nominations for its Retailer of the Year Award for Leadership. Nominees can represent any kind of retail business. The award has two categories: those with fewer than 100 employees, and those with 100 or more employees. Any individual or a couple who own or manage a retail business, or a store manager of multi-location stores in Florida is eligible.

Nominations must be postmarked no later than Aug. 3 1 To get a form, phone Lori Elliott (888) 357-3824. Financial Planner QUESTION: What are the tax consequences of selling a residence (home) because of a divorce if neither spouse has reached age 55'2 to qualify for $125,000 exclusion? ANSWER: The deferral of gain rules under Code Section 1034 and age 55 lifetimes exclusions have been repealed. For the sale of a personal residence after May 6, 1997, a single homeowner may exclude $250,000 of gain; a married couple filing a joint return may exclude $500,000 of gain. You must have owned and used the home as a principal residence two out of five years prior to the sales.

A principal residence sold when a divorced couple file separate returns, the house is divided into two- and each ex-spouse may exclude $250,000 for their portion of the gain. I suggest you coordinate the efforts of your tax adviser and attorney. James Anders Certified Financial Planner Fort Myers Send your questions to: Question of finances, Business news, News-Press, P. O. Box 10, Fort Myers, FL 33902, or fax 334-0708.

It will be answered by a member of Southwest Florida Society of the Institute of Certified Financial Planners. Army testing compact water purification system PENSACOLA A compact water purification system with civilian potential is being tested by the Army. The reverse-osmosis system for purifying polluted or salty water can be loaded onto a Black Hawk helicopter or a Humvee while existing systems fill a semitrailer, said George Scott International Inc. project engineer Stephen Rome. "If this system does what we expect, it will be a hot seller," said Andrea Naples, project engineer at the Army Test and Evaluation Command in Warren, Mich.

"The Army projects they will need 286 units." The Marine Corps also Js interested. Potential civilian uses include disaster relief, and the system could be installed on offshore oil rigs and other locations with poor or costly water supplies, Each unit costs about $75,000. The Army received three prototypes last month for testing at Aberdeen, and Camp LeJeune, N.C. Staff and wire reports CcRtrolysur IihmiCIwI future While financial plan- ners can provide a valu- able service, you might decide a do-it-yourself approach. If possible -1 to be your own financial planner, but the decision; is significant and you will be embarking on a life- i long endeavor.

Page 3 MutualsME I Nasdaq 5E NYSE6-7E the FBI's Meunier said. As Meunier sees it, one common problem with white-collar criminals is that "a lot of countries welcome them with open arms because they bring in money." Is anyone really doing anything to apprehend Incendy? "Only in a very limited way," said Louis Vega, the warrant coordinator for the U.S. Marshals Service in West Palm Beach. While the list of havens has shrunk to 10 to 15 countries (including Iran, Libya and Afghanistan) that don't have treaties with the U.S., a fugitive only needs to find one hiding place. What makes Europe a favorite spot for Americans on the run is the ease of blending in with tourists and U.S.

expatriates. Web Iridium LLC, the cash-strapped satellite-telephone company, said Wednesday that Chase Manhattan Corp. claims the company has defaulted on an $800 million loan and is demanding that Motorola Inc. Iridium's biggest investor put up $300 million to guarantee payment. Chase is trying to strengthen its bargaining position as Iridium and Motorola hammer out a financial restructuring with creditors, Iridium said in a regulatory filing.

Motorola and Iridium denied Chase's claims, and Chase declined to comment. account balance that day. Or use telephone access if possible and make a written record of the time of the call and the amount of the balances. Consider paying off credit card balances and other outstanding loans to minimize the number of your accounts. Make a list of all automatic deposits and debits that are made to your accounts.

Throughout January, contact your institution to make sure those transactions have been completed. Check all account statements in January to make sure there are no errors. Joan D. LaGuardia may be contacted at 335-0364. Monsanto might spin off Searle drug business ST.

LOUIS Monsanto i a leading agriculture-: biotechnology company, might spin off its Searle phar-, maceutical business to help boost the value of its stock, Dan Dorfman reported in his "column on JagNotes.com. That could invite acquisition offers from competing drug companies, including Pfizer Dorfman said. Searle, which makes the arthritis medicine Celebrex, could fetch at least $50 a share in a sale, more than Monsanto's current stock price, Dorfman said. Monsanto Chief Executive Robert Shapiro told the Bloomberg Forum last month that, "We have no intention whatsoever of spinning off Searle." Shares of St. Louis-based Monsanto fell to 39.

Citigroup suspends action with Tullett Tokyo NEW YORK Citigroup Inc. said it has suspended doing foreign exchange business with Tullett Tokyo Pic, a U.K. broker. The move is the result of derogatory remarks made to a member of Citibank's foreign exchange group at a July 26 dinner, attended by employees of both compa- nies, people familiar with the situation said. Tullett Tokyo said David Tuffley, the company's chief executive, was the only one who could comment on the matter and that he was away.

Citibank said it is awaiting the results of an internal investigation into the matter by Tullett Tokyo. The Times of London first reported the incident. Tullett, founded in 1971, is among the largest international brokers of foreign exchange, money, derivatives, energy, securities and equity products. Last week, Tullett Tokyo said it is buying Liberty Brokerage Investment Corp. to create one of the world's three largest companies that broker secu- rities trading among invest-l ment firms and banks.

Oil expected to remain above $20 a barrel NEW YORK Crude oil futures in New York will stay above $20 a barrel for the rest of the year, as producers keep their pledges to cut out- put by 7 percent, the U.S. Department of Energy said. The DOE said it expected crude oil prices to average $20.50 to $21 a barrel for the rest of the year, up from its July forecast of $18. The esti- mate was raised because the Organization of Petroleum Exporting Countries is doing better than expected in I achieving promised output reductions, the DOE's Energy Information Administration said in its Short Term Energy Outlook. "We had been skeptical," said Dave Costello, the EIA economist in charge of the report.

"It's clear now with this many weeks' experience -that OPEC compliance is better than we'd thought." The economy this week Major business events 1 and economic events sched-t uled for the coming week: MONDAY: Treasury bill auction; state securities regulators release findings and recommendations based on seven-month investiga- tion of day trading industry. TUESDAY: Treasury note auction I WEDNESDAY: Federal Reserve releases survey of regional economic conditions as compiled by the Fed's 12 regional banks; I Treasury note auction. THURSDAY: Labor Department reports weekly jobless claims; Commerce Department reports retail sales for July I FRIDAY: Commerce Department reports on business inventories for June; 'Labor Department reports on producer prices for July. The News-Press services wire Special to The News-Press PARADISE: The Naples Pier is just one of the many attractions that lure visitors to Southwest Florida. Competition for would-be vacationers is intense with the increased use of the Internet.

Federal court reverses judgment Soviet debt, days after creditor governments agreed to postpone billions in payments due this year and next. Russia seeks to restructure its entire debt to the creditor banks, known as the London Club, and said an agreement may include some debt write-off, lower interest payments and a long grace period. The banks' negotiating committee, chaired by Deutsche Bank AG, said it is considering several proposals, including rescheduling only some interest payments now and the entire debt later. The banks refused to comment on which offer they favored. Chairman can't be held liable without a trial, ruling says Bloomberg News Service A federal appeals court on Friday reversed a $4.3 billion judgment against former Lincoln Savings Loan Association Chairman Charles Keating a symbol of the 1980s scandals, after concluding he can't be held personally liable to the U.S.

government without a trial. The ruling by the 9th U.S. Circuit Court of Appeals in San Some practical tips to help quell Y2K fears Francisco overturned a lower court's 1994 decision awarding the $4.3 billion to the Resolution Trust Corp. The RTC had asked for the judgment, without resorting to a trial, based in part on Hearing's criminal conviction in another case. The U.S.

economy added more jobs than expected in July and wages rose at the quickest pace in six months, signs the Federal Reserve may have to raise interest rates to hold down inflation. The unemployment rate stayed near a 30-year low at 4.3 percent. Employers added 310,000 workers to their pay- terns are programmed to read 00 as 1900 and, without updating, won't know how to distinguish 2000. Some people worry that computer problems will cause chaos worldwide at the stroke of midnight Dec. 31.

Many fear banks and brokerages will lose account information and that customers will not be able to get access to their funds. The most fearful people plan to convert their funds to cash or cashier checks or some other kind of commodity. But if you are contemplating such a drastic move, please think very carefully. Large sums of cash or a check can easily be lost or stolen. Don't set yourself up to be a victim.

bility of loss of electricity or other disaster. If your bank doesn't have a report ready yet, consider investigating other banks in your area. Keep your November statements and all records of transactions after that period to check against statements in the new year. If you have a personal computer and your bank or brokerage has online services, by all means learn how to use them. Online bank customers will be able to print out their statements on Dec.

31 for an accurate picture of their balance sheet. If possible, access your account by ATM on Dec. 31 to get a receipt listing your FEAR OF Y2K PROBLEMS could prompt people to take so-called precautions that might damage their financial well-being more than any computer glitch could. acronym for the year 2000, refers to a general array of computer problems that might occur in systems JOAN D. LAGUARDIA Personal finance that can recognize dates after 1999.

Older sys- i (J.