Chicago is My Home

19
Jun

Authorities Begin to Make Arrests Related to Mortgage Fraud, Identity Theft

Author: Adam Fendelman, Category: Business

CHICAGO – Federal authorities on Thursday began making arrests and pressing charges in the Chicago area against defendants suspected of mortgage fraud and identity theft, according to a Chicago Tribune report.

The arrests, which could reach as many as 70, are part of a nationwide mop up following the mortgage crisis that has rocked the United States economy and particularly the real estate industry. In perhaps the most high profile of the cases, two former Bear Stearns managers (Ralph Cioffi and Matthew Tannin) were arrested in New York on Thursday on charges of securities fraud.

According to the Chicago Tribune report, mortgage fraud has become increasingly sophisticated as criminals and street gangs use real estate to launder drug money. In a case earlier in 2008 involving the Black Disciples and Black P Stone gangs, investigators found as many as 100 Chicago-area properties tied up in a mortgage fraud scheme.

The arrests are expected to include real estate agents, brokers and appraisers.

By Megan O’Neil

18
Jun

RCN Launches New Fiber-Optic Network in Chicago as Customer Alternative

Author: Adam Fendelman, Category: Technology

CHICAGO – RCN Metro Optical Networks, which is a division of RCN Corp., announced on Monday the launch of a new Chicago network. RCN Metro Optical Networks, which is a provider of fiber-based network solutions, just completed constructing a fiber ring that encompasses more than 10 miles in downtown Chicago. This adds to RCN’s existing 538-mile fiber network in the Chicago area.

“Customers are seeking alternative carriers [that] can provide the high levels of service, reliability and [quality-of-service] parameters that are required to support today’s applications. RCN Metro is delighted to announce this latest market expansion and be able to support Chicago-based businesses,” RCN Metro President Felipe Alvarez said in a Monday statement.

RCN Metro’s complete set of products available in the Chicago area ranges from metro Ethernet to SONET and wavelength services, IP transit, colocation and network management services. The expansion will add an extra 100 gigabits of overall network capacity in a core growth market.

By Jenna Zizzo

18
Jun

OfficeMax to Lay Off 2,700 Managers, Assistant Managers Across 900 Stores

Author: Adam Fendelman, Category: Business

NAPERVILLE, Ill. – Office supply retailer OfficeMax in Naperville, Ill. said on Tuesday it will shed 2,700 manager-level employees at its 900 stores nationwide in order to reduce costs.

The company will lay off half of all assistant store managers and two-thirds of all store supervisors, a company spokesperson said on Tuesday. The void will be filled with lower-paid, on-floor associates who will focus on specific retail products. The layoffs are expected to be completed by the end of June 2008.

OfficeMax stores, which sell everything from desk chairs to paper clips, have struggled in a weakened economy. The retailer also faces stiff competition from office supply giant Staples. Credit Suisse on Monday dropped OfficeMax’s stock rating from “outperform” to “neutral” and lowered its target price to $20 from $25.

By Megan O’Neil

17
Jun

President at Sun-Times Media Group Warns of Additional Cuts at Company

Author: Adam Fendelman, Category: Business

CHICAGO – Speaking Tuesday at the company’s annual meeting, Sun-Times Media Group President/CEO Cyrus Freidheim Jr. called the current market “miserable” and said further cost cutting is imminent.

Despite the Sun-Times and its affiliated papers being the most widely read in the Chicago area, Freidheim says the company is still watching its advertising revenues melt before its eyes.

Freidheim did not specify where or when the cuts would be made nor did he discuss the possible sale of Sun-Times assets. The struggling company was delisted by the New York Stock Exchange in May 2008 and its shares currently trade for 44 cents. The company is valued at about $35.4 million.

By Megan O’Neil

17
Jun

Northwestern University, Evanston Northwestern Healthcare to End Affiliation

Author: Adam Fendelman, Category: Business

CHICAGO – Northwestern University’s Feinberg School of Medicine and Evanston Northwestern Healthcare will terminate their 78-year affiliation, the institutions said on Monday in a joint statement. The school and the health care provider were unable to work through disagreements surrounding the control of research and teaching programs, hiring procedures and the allocation of funds.

Over a one-year transition period, most Northwestern students and residents will be phased out of rotations at Evanston Northwestern Healthcare’s three hospitals. These include Evanston Hospital, Glenbrook Hospital and Highland Park Hospital.

The health care company will also have to remove Northwestern’s name from its title. However, Evanston Northwestern Healthcare has confirmed it is already in talks to possibly create an affiliation with the University of Chicago, which is another standout in medical education and research.

“We recognize the importance of medical education and clinical research in support of our patient-care mission,” said Evanston Northwestern Healthcare President/CEO Mark Neaman in a Monday statement.

He added: “You can be assured we will develop a strong academic relationship going forward in support of our steadfast commitment to offer outstanding reaching programs in an academic setting that promotes the clinical teaching and research interests of our physician faculty.”

By Megan O’Neil

17
Jun

Jones Lang LaSalle Plans to Buy Texas-Based Staubach Co. For $613 Million

Author: Adam Fendelman, Category: Business

CHICAGO – In a marriage of two real estate power players, commercial real estate firm Jones Lang LaSalle said on Monday it will buy Texas-based Staubach Co. for $613 million.

Under the terms of the agreement, Jones Lang LaSalle will pay $123 million in cash and $100 million in stock at the close of the transaction, which is expected to take place in the third quarter of 2008. The remaining $390 million will be paid out over five years. Further, Staubach could earn an additional $114 million depending on company performance.

Founded by former Dallas Cowboys quarterback Roger Staubach in 1977, Staubachis a real estate firm that specializes in representing tenants in commercial, retail and office space. Its merger with Chicago-based Jones Lang LaSalle will give North America-focused Staubach access to a global platform, executive chairman Roger Staubach said in a Tuesday statement.

He added: “It today’s global economy when many of our clients want an international platform, this merger gives us the opportunity to provide those services seamlessly as one team working together.”

Staubach will join the Jones Lang LaSalle board of directors and will serve the company as its Americas executive chairman.

By Megan O’Neil

16
Jun

Chicago Officials Eyeing Michael Reese Hospital as Site For Olympic Village

Author: Adam Fendelman, Category: Business

CHICAGO – Michael Reese Hospital, which recently notified Illinois regulators that it would shut down by the end of 2008, may play a key role in Chicago’s bid for the 2016 Olympics as the future site of an Olympic village.

According to reports by the Chicago Tribune and Crain’s Chicago Business, Chicago mayor Richard Daley has marked the Michael Reese Hospital campus for redevelopment as part of its Olympic planning. An “agreement in principle” is already in place with site owner Medline Industries, according to the reports.

Founded in 1881, Michael Reese is one of the city’s oldest hospitals. Owners say increased operating costs and diminished revenue have resulted in tens of millions of dollars in losses. The facility is in disrepair and officials spent months discussing a possible closure before making their decision public in June 2008.

In a letter filed with the Illinois Health Facilities Planning Board (which must approve the closure of the hospital), Michael Reese’s landlord said it will terminate the lease between Sept. 30, 2008 and Dec. 31, 2008. The closing of the hospital would pave the way for a possible sale of the property to the city for use during the 2016 Olympics.

By Megan O’Neil

16
Jun

FAA to Lift Hourly Flight Cap at O’Hare International Airport Starting on Oct. 31

Author: Adam Fendelman, Category: Travel

CHICAGO – O’Hare International Airport, which is one of the nation’s most heavily trafficked airports, is about to get even busier. The Federal Aviation Administration (FAA) said on Monday it will lift an hourly cap of 88 flight arrivals at O’Hare and allow for an additional five flights an hour (or 70 flights a day).

The change will take effect on Oct. 31, 2008 and coincide with the opening of a new runway at O’Hare that’s scheduled for November. Speaking on Monday following the announcement, Chicago mayor Richard Daley said the city remains committed to a thorough overhaul of the airport to be completed by 2014.

Major delays at the Chicago hub brought the addition of flights into question. A severe downturn in the airline industry, however, has prompted the FAA to ease restrictions with carriers and airports.

By Megan O’Neil

16
Jun

Cummins, Inc. Extends Navistar Truck Engine Supply Contract Through 2013

Author: Adam Fendelman, Category: Business

WARRENVILLE, Ill. – Cummins announced on Monday it has signed a three-year contract extension to continue supplying Navistar International with engines for its “Class 8” on-highway trucks.

“Navistar has a [long] association with Cummins. The ISX engine enjoys significant share in our Class 8 products,” said Navistar CEO Daniel Ustian in a Monday statement. “We are pleased that this agreement will extend our relationship through 2013.”

Based in Columbus, Ind., Cummins designs, manufactures, distributes and services engines and related technologies including fuel systems filtration and emission solutions. Warrenville, Ill.-based Navistar produces brand commercial and military trucks.

As part of the agreement, which begins in 2010, Cummins will supply Navistar with ISL, ISM and ISX engines through 2013. Starting in 2010, Cummins will be Navistar’s exclusive supplier for 15- and 16-liter big-bore diesel engines for Navistar’s trucks in North America.

Cummins GM Ed Pence said on Monday in a statement that Cummins and Navistar have a long history of collaboration that serves their mutual customers.

“We have been working closely with Navistar to integrate our 2010 solutions. This agreement will deliver the right technology to meet customers’ needs for operational efficiency and low operating costs with high performance and reliability,” Pence said.

By Megan O’Neil

13
Jun

No Time For the New York Times? Chicago’s Newser Comes to the Rescue

Author: Adam Fendelman, Category: Business

CHICAGO – Newser, which is a Chicago-based online news synthesizer that scans Internet news and summarizes the best stories from a hundred news sources, announced on Thursday the launch of a new feature called “NY Times in 60 Seconds”.

“Finally there’s a way to read the New York Times without having to, well, read the New York Times,” said Newser founder Michael Wolff in a Thursday statement.

“NY Times in 60 Seconds” will read the New York Times for you and select the must-read stories people will be buzzing about daily. It will then compile that content into a summary stored in a New York Times grid for quick scanning.

Thursday also marked the launch of Newser’s “Best of the Glossies” and “Pundit Watch” grids. These are daily news grids mentioning top magazine stories and provocative opinion pieces.

For Newser users craving local news, Newser has also added local streams for more than 70 U.S. markets and 16 international, English-speaking cities and RSS feeds. As well, Newser Local has local news and weather, AP sports coverage and restaurant and nightlife reviews via Yelp. Newser is a service from Chicago-based HighBeam Research.

By Jenna Zizzo