The owner of a former Westport investment firm pleaded guilty today in federal court in New Haven to interstate transportation of money obtained from fraud.

Anthony Iati, 48, of York, Pa., was the owner of Great River Capital, LLC, formerly of 191 Post Road West in Westport. Court documents showed investors lost about $700,000 in connection with the company which sold jewelry to department stores. 

In order to finance the company while the company awaited payment from its customers, Iati obtained funds from investors, prosecutors said. In December 2006 and January 2007 an investor sent funds from Pennsylvania to the Westport firm, they said.

At the time of the interstate transportation of funds, Iati knew that he had already converted the investors’ funds for a real estate investment and was not using the funds as he had represented, the U.S. Attorney’s office said.

Two doctors, their families and other colleagues have sued Westport National Bank, and a Westport-based pension consulting firm for losses they say occurred because they invested with Bernard Madoff, the Hartford Courant reported today.

Dr. Stephen R. Levinson of Easton and Dr. Richard E. Layton of Baltimore filed their lawsuit in U.S. District Court in Hartford on Feb. 13, the newspaper said. The bank acted as a custodian for Madoff, they said, and “deprived [them] of the security that an independent custodian is retained to provide.”

They also accused the bank and Westport’s PSCC Services of violating the federal Racketeer Influenced and Corrupt Organizations Act and the state Unfair Trade Practices Act, breach of fiduciary duty, fraud, negligent misrepresentation, aiding and abetting conversion and statutory theft, and other offenses.

Levinson began investing with Madoff years ago and later brought in his brother, and two daughters “whom he’d lectured about building nest eggs, even while they were in college,” the Courant said. They are suing for an estimated $60 million, the newspaper said.

UPDATE The Journal Register Company, owner of the Westport Minuteman and Fairfield Minuteman as well as 20 daily newspapers and other weeklies, sought Chapter 11 bankruptcy protection today, citing declining advertising revenue and a heavy debt load.

The company said in a news release it intends to continue to operate as usual, and does not anticipate any business interruption during its planned restructuring.

The Yardley, Pa.-based newspaper publisher reported $596 million in assets as of Nov. 30 and $692 million in debt, including unpaid interest. Revenue has fallen more than 20 percent since 2006, the company said in the court filing.

The company, whose holdings include The New Haven Register, has already come to agreements with key creditors through a pre-negotiated reorganization plan, and said it was planning to restructure its operations.

A Westport mortgage broker has had its license revoked by the state Banking Department and ordered to pay a $30,000 fine.
The state Banking Department said the firm Michael Schulman, doing business as New England Financial, was at 191 Post Road West, Westport (above). But no such firm was listed on the lobby directory there today. (CLICK TO ENLARGE) Dave Matlow for WestportNow.com

A notice posted on the department’s Web site this week said the Feb. 4 action was taken against Michael Schulman, doing business as New England Financial at 191 Post Road West, because it allegedly employed an unregistered loan originator and failed to answer five complaints.

There was no company by that name listed on the lobby directory at 191 Post Road West today. However, other documents on the Banking Department’s Web site showed a company with the same name variously listed at 21 Bridge Square and 25 Sylvan Road South in Westport as well as 242 New Canaan Ave., Norwalk.

All five complaints had to do with Schulman’s alleged loan originator, Bruce D. Simmons, whom the department said is not registered or licensed as an originator, according to the Web site.

By Dave Matlow

Westport’s decision to suspend enforcement of a ban on standalone advertising signs outside businesses to help them in the difficult economy won praise today from at least two merchants. They said their newly placed signs brought them customers almost immediately.
Westport Wash & Wax at 791 Post Road East reported more business as soon as their sign went up. (CLICK TO ENLARGE) Dave Matlow for WestportNow.com

“It’s great the town is working with local merchants,” said CraigTiefenthaler, co-owner of Westport Wash & Wax at 791 Post Road East.

“We put it out there the moment we heard of the new regulation. Within 10 minutes we got a customer who said he pulled in for a wash because of the sign and the discount price.”

At Mansion Clam House, 541 Riverside Ave., co-owner Sue Myers said the restaurant, which had put out a sign illegally earlier and removed it at the town’s request, said, “Without a doubt the street sign helps business. We get 20 to 30 percent more walk-ins when the sign is out.”

In the continuing turnover on Westport’s retail scene, Chef’s Table at 1035 Post Road East has closed (after its Church Lane branch closed earlier) and will soon be replaced by Arcudi’s Restaurant. Joe Arcudi, Westport’s first selectman from 1993 to 1997, ran his restaurant at the location from 1973 to 1994. He later opened a restaurant in Norwalk, now closed. Arcudi said the restaurant will reopen in six weeks or two months and “we will have a our specialty square Sicilian pizza” and a variety of menu selections including steaks. He added, “It will be a family-owned and operated restaurant that will include two of my three sons, both daughters and my 17-year-old grandson.” (CLICK TO ENLARGE) Dave Matlow for WestportNow.com

Westport First Selectman Gordon F. Joseloff today announced he has initiated a series of steps to aid Westport citizens and businesses in battling the current economic crisis.
Gordon Joseloff: Seeking ways to ease economic pain. Contributed photo

“Like many other communities across the country, our citizens and businesses are experiencing the economic pain, and I believe local government must be a leader in doing what we can to ease that pain,” Joseloff said.

To this end, Joseloff said he has taken the following steps:

—formed a government and business partnership to find ways to promote local businesses and encourage Westporters to shop locally.

Westport’s Zest Cafe & Restaurant at 8 Church Lane opposite the Family Y continues to operate following a Chapter 11 bankruptcy filing. Calls to the owners were not immediately returned. A real estate Web site said the 3,500-square foot restaurant which seats 80 is available for lease. Zest opened in 2006 in the basement of the building which once housed Westport Bank & Trust Co. and now is home to a Patagonia clothing store at 87 Post Road East. (CLICK TO ENLARGE) Dave Matlow for WestportNow.com

Westport’s Terex Corp. issued a grim earnings report today. It said it had a $421.5 million fourth quarter loss, would do poorly in 2009, and has already cut or will cut more than 5,000 jobs, including the majority of its temporary work force.

Shares fell $3.22, or 24 percent, to $10.40 in aftermarket electronic trading, having closed earlier up 10 cents at $13.62. The stock, which last May traded as high as $76.25, was hit hard by the global market meltdown, bottoming at $8.97 in November.

Terex’s loss in the final quarter of 2008 was equivalent to $4.46 a share, compared with net income of $174.0 million, or $1.67 per share, for the fourth quarter of 2007.

The latest period includes charges of $4.84 per share to write down the value of goodwill in the company’s construction, road building and utility products businesses. It also was hurt by charges of 24 cents a share related to cutting production levels. Excluding these items, profit would have totaled 62 cents per share.