First Investors indicted
First Investors Corp., a mutual fund company known for high-pressure sales tactics, has been indicted on one count of securities fraud -- unlawfully offering or selling two junk bond funds, the Office of the Commonwealth's Attorney in Richmond, Va., announced yesterday. The one-page indictment, believed to the first embodying a criminal charge against a mutual fund company, says the violations occurred between Jan. 1, 1985, and Dec. 31, 1989.
The Virginia move, which came after a six-month investigation by the State Corporation Commission, the Virginia State Police and the Office of the Commonwealth's Attorney, is the latest of several legal actions taken against First Investors, all involving its junk bond funds.
Chrysler boosts pension fund
Chrysler Corp. said yesterday it pumped $300 million into its underfunded pension fund last month, six times more than the law required. The company boosted the contribution to its $4.39 billion pension obligation to take advantage of a $45 million tax break.
The pension liability has been viewed as a financial risk for the nation's No. 3 auto company. Analysts said the ample contribution shows Chrysler has enough cash to fund its pensions, new car development and dividends and still book a profit for the third quarter.
Westinghouse lands toll contract
Westinghouse Electric Corp. said yesterday its Linthicum-based Electronic Systems Group has signed a $4.5 million contract to design and install a computerized toll collection system for the Richmond area. The project is part of the Electronics Group efforts to develop commercial markets.
MCI moves jobs from Va.
MCI Communications Corp., the nation's second-largest long-distance telephone company, said yesterday it is phasing out billing operations in Virginia and moving 250 jobs to Cedar Rapids, Iowa. The relocation of the computer programmers from Pentagon City, Va., just outside Washington, is part of MCI's effort to center its software development in Cedar Rapids and Colorado Springs, Colo., MCI said.
Reynolds calls off sales talks
Reynolds Metals Co. said yesterday it has called off negotiations to sell its ALRECO Metals Inc. recycling plant to U.S. Reduction Co. after the two sides failed to reach an agreement.