Nation briefs 03/25/03

Homeowners staying current with mortgages

WASHINGTON -- Fewer homeowners were late paying their mortgages in the final quarter of 2002, but economists worry that a worsening jobs market could be making that more difficult now.

The seasonally adjusted percentage of mortgage payments 30 or more days past due for all home loans dipped to 4.53 percent in the fourth quarter of last year, down from 4.66 percent in the third quarter, the Mortgage Bankers Association of America reported Monday.

The delinquency rate does not include foreclosures.

Decades-low mortgage rates are helping homeowners handle their mortgage debt, economists say. The dip in the fourth quarter's delinquency rate came as personal bankruptcies hit a record high in 2002.

Still, Doug Duncan, chief economist at the Mortgage Bankers Association of America, said he's concerned about the impact the recent deterioration in the labor market will have on home-mortgage delinquency rates.

If house prices continue to slow, the job market gets worse and the economy doesn't pick up, "That will make it more difficult for households to work out troubled loans," Duncan said.

Missing Michigan teen found safe in California

SACRAMENTO, Calif. -- A 14-year-old Michigan girl missing for more than three weeks was found safe Monday in California and her companion, a convicted murderer, was arrested.

A California Highway Patrol trooper pulled over the truck in which the pair was riding after receiving a tip. The girl, Lindsey Ryan, appeared to be in good condition, said CHP Commissioner D.O. Helmick. Her blonde hair had been dyed black.

"It is a horrible situation that has a happy ending. You are looking at some very happy parents today," said the girl's father, Patrick Ryan.

The teenager left her house in Jones, Mich. -- a small town near the Indiana state line -- on March 1 to meet Terry Drake, whom police say she met at church and had corresponded with by e-mail.

Michigan, Indiana and California all issued Amber Alert warnings seeking tips on Lindsey's whereabouts. The pair had also been featured recently on the "America's Most Wanted" television program.

U.S. Technologies CEO charged in scheme

NEW YORK -- A federal grand jury brought new charges Monday against the chief executive of U.S. Technologies, who is accused of misusing $15 million entrusted to him by investors.

A federal grand jury handed up a 22-count indictment charging C. Gregory Earls, 58, with multiple counts of securities, mail and wire fraud.

The indictment says Earls controlled an investment company called USV Partners and claimed he would use investors' money to buy shares of U.S. Technologies. Instead, he allegedly used it for a trust fund for his children and to repay investors from other business ventures.

It also says Earls stole $1.3 million from investors, claiming he would finance an Internet company but pocketing the money for himself.

Alleged pyramid scheme victims share $20 million

WASHINGTON -- Operators of what the government contended was an illegal pyramid scheme have agreed to refund $20 million to investors, the Federal Trade Commission announced Monday.

The money will go to those who lost money after investing in SkyBiz, an Internet-based operation in Tulsa, Okla. The out-of-court settlement was reached in January and anounced formally on Monday.

A court-appointed receiver will send e-mails to those eligible to collect, officials said.

The companies involved did not admit breaking any laws but were ordered not to engage in similar practices.

SkyBiz charged participants $125 to buy an educational software package and the opportunity to earn money by recruiting others to buy. The government called the arrangement a classic pyramid scheme, and said more than 96 percent of investors lost money.-- From wire reports