Federal agents last week raided JB Oxford & Co., a Beverly Hills-based discount brokerage firm associated with convicted stock swindler Irving Kott.
The Securities and Exchange Commission is working with the FBI in a probe of Kott, who was a consultant to Oxford.
Kott was previously convicted of stock fraud in Montreal in 1976. Federal agents are now looking into his recent dealings in the United States.
The FBI served search warrants on the brokerage firm and seized documents, but no arrests were made. Investigators would not comment on the Oxford investigation.
A study conducted by Mayor Richard Riordan's office concluded that the Metropolitan Transportation Authority's $2.8 billion budget is riddled with fiscal uncertainties.
The report issued last week found that the MTA's spending plan includes "unrealistic financial assumptions and flawed funding plans." In addition, the study found that the transit agency has a bigger deficit in this year's budget than previously thought an amount that could hit $60 million.
Riordan, who assumed the chairmanship of the MTA's board last month, said he wants to delay any action on the report until the agency has a new chief executive in place. The agency has offered the job to New York transit executive Michael C. Asher, who has yet to formally accept the position.
The study conducted by City Hall budget director Christopher O'Donnell found that the budget deficit is at least $29 million higher than the agency had reported. The report also went on to say that the agency's accounting was often "sloppy," with poor financial reporting and unrealistic revenue forecasting.
The parent company of Glendale Federal Bank announced that it has agreed to buy Pasadena-based CenFed Bank in a stock swap valued at $210 million.
This will be the fifth deal in two years for GlenFed's parent Golden State Bancorp Inc.
The acquisition of CenFed, which has $2.3 billion in assets, will require regulatory and shareholder approval.
The deal is expected to close in 1998 and might result in some branch closures and job cuts, according to Golden State officials.
CenFed has 400 full- and part-time employees and seven branches located within a mile of an existing Glendale Federal office. Glendale Federal is the state's sixth largest savings and loan, with assets of $16.2 billion and 200 branches.
ITT Corp. announced that it has signed a one-year contract to manage four former Ritz-Carlton hotels owned by the Los Angeles-based company of billionaire Saudi businessman Sheik Abdul Aziz al Ibrahim.
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