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BUSINESS
THURSDAY JANUARY 12, 2006
Sports 1G
U.S. automakers making push
into growing crossover segment
PHOTO/HONDA
Sport utility vehicles like Honda's CR-V is undergoing a re-design that
can give a more car-like ride.
By Ken Thomas
IJiE ASSOCIATED PRESS
DETROIT - Dampened by high
gas prices, the auto industry has
faced tou^ times soling large sport
utility vehicles lately. But with
demand still high fix)m families
wanting plenty of space, carmakers
may have an antidote: the crossover.
Crossovers such as the Ford
Escape and Honda CR-V, built on
car platforms that give motorists
more of a car-like ride, are expected
to outsell traditional SUVs in 2006
for the first time.
Automakers are touting several
new designs of the models, called
CUVs, at the North American
International Auto Show. The
Detroit showcase started media pre
views Sunday and opens to the pub
lic Saturday
Dealerships are expected to have
plenty to offer in the crossover mar
ket in 2006, with about 50 models
available, analysts said. That’s up
fium 41 last j^ar and just over a
dozen in 2000.
“It’s the sedan of the next decade,”
said Micliael Robinet, an auto ana
lyst with CSM Worldwide.
Ford Motor Co. imveiled the 2007
Edge on Sunday, offering a vehicle it
said would “shake up” the crossover
market. The Edge boasts perfor
mance with a 250-horsepower V-6
engine and is expected to attract
See U.SJ7C
Overseas
hMeries
scam more
flmeilGans
By Zenitha Prince
AERO SEWSPAPERS
BALTIMORE - Myrtle Scott received the check
and the lottery award letter in the mail a couple
weeks before Christmas. It seemed an answer fium
heaven at the time.
‘When I got the check, I was excited. That was
my first impression,” Scott, 51, said. "You see a
check like that just before Christmas, and you can’t
help but to be excited.”
Meanwhile, in Warrior, Ala., Alice Tumblin
received a call fix)m her local bank saying they had
intercepted three sizable checks written on the
accoimt of the Tumblin’s construction firm’s
account, just as Scott’s check was. Tumblin said the
checks would have wiped out the account.
The first three checks alone would have put us
out of business. It would have taken all the money
fixjm out of our account,” she said of the small fam
ily-owned outfit that boasts a mere ei^t employ-
Both Tbmblin and Scott are victims of a new-and-
improved mail fi^ud gimmick: the foreign lottery
scam. Notifications of sizable award winnings in
foreign countries like Canada, Australia and the
Netherlands are sent to unsuspectii^ people, who
are also asked to send money to claim the prize,
supposedly for taxes, insurance, processing and the
like.
T think it’s probably an old scam using new tech
nology,” said Maryland Attorney General J. Joseph
Curran Jr, ‘before, they would try to scam you, on
the street; now they’re using the telephone, e-mail
and mail.”
See AMERICAN7C
Only in America:
promoter’s rival
joins boxing game
By Larry Neumeister
THE ASSOCIATED PRESS
NEW YORK - A lawyer who has sued Don King
several times — and cost him millions of dollars -
has gone to woik for the boxing promoter.
The lawyer, Judd Burstein, once vilified King as
a canc^ on the sport but has now
come to praise him as “extremely
honorable.”
As for King, he’s also come around:
He once called Burstein an "insidi
ous insect” but now describes him as
tenacious, hardworking and en^-
getic.
respect his talent,” King said.
“He’s on our side now.”
Burstein had a string of successes against King in
seven cases he brought between 1997 and 2004,
including a $7.5 million settlement fixim him on
behalf of boxer Tbrry Norris.
Ihe 52-year-old Burstein said he called reporters
afterward and told them: "Don King was a cancer
on the sport and the settlement was a dose of
chemotherapy *
King once sued the lawyer for defamation in
En^and after Burstein daimed King was anti-
S^nitic. The case was settled.
“He and I had always had this wdiff love-hate
relationship,” Buixrtein said. “He had a lot of respect
for me because I won cases against him.”
Burstein said his change of heart came after he
rejaesented IBF boxing champion Chris Byrd in a
lawsuit against King in 2004. Byrd said King
King
See ONLY/7C
##Ol
PHOTO/DWIGHT CARTER
Earl Graves Jr. (left) has been named chief executive at Black Enterprise magazine, succeeding his father, Earl Graves Sr. The
senior Graves, who founded Black Enterprise in 1970, will remain chairman and publisher.
Passing the torch at BE
Magazine publisher Earl Graves names son chief executive
By Herbert L. White
herb.white^theckarlottepostrom
The nation’s leading black business pub
lication has a new chief executive.
Earl G. Graves Sr., founder of Black
Enterprise magazine, named his son Eaii
“Butdi” Graves Jr. chief executive officer
and president. The senior Graves, who
founded Black Enterprise in 1970, will
remain chairman and publisher.
‘Those who advance at Earl G. Graves
Ltd. - whether family or not —must earn
their positions,” said Earl Graves Sr. “Over
the past 17 years Butch has ®ccelled
despite the challenges of an ultracompeti-
tive and rapidly changing publishing
industry In 1988 BE had revenues of
approximately 20 million. In 2006 we pro
ject that those revenues will exceed 60 mil
lion. As we have expanded our company
Butch’s business acumen and instincts
have helped triple our revenue.”
The junior Graves will continiie to lead
the strategic positioning of the corpora
tion, guide its overall profitability, and act
as the top editorial decision maker.
‘T am excited about the opportunity to
succeed my father as CEO of Black
Enterprise,” Butch Graves said “My mis
sion is to build upon the success of what he
established, while finding new media out
lets that will grow our business and
demonstrate all things possible to our core
audience.”
See MAGAZINE7C
Banking Commission shuts down payday lenders
By Afrique I. Kilimanjaro
CAROUNA PEACEMAKER
GREENSBORO - North
Carolina residents received
an eariy Christmas present
fix)m State Commissioner of
Banks Joseph Smith
Smith ruled that since 2001,
payday lender Advance
America operated illegally in
North Carolina by establish
ing a partn^ship with an out-
of-state bank and undermin
ing state laws.
State Attorney G^ieral Roy
Cooper successfully argued
that Advance Am^ica violat
ed Neath Carolina usury laws
by providing loans at interest
rates in excess of400 percent.
Cooper also proved that
Advance America evaded
state consumer protection
laws by operating under the
charters of out-of-state
Federal Deposit Insurance
Corporation banks.
North Carolina is the first
state in the nation to autho
rize payday lending and then
act to make it an illegal indus
try In 1997, the N.C. General
Assembly granted payday
lenders a special interest law
that allowed the industry to
charge interest rates well
above North Carolina’s usury
rate of 36 percent. The
General Assembly allowed
the payday special interest
law to sunset in 2001, making
the practice of payday lending
illegal under state law. Since
the special interest law’s expi
ration, payday lenders have
entered into affiliations with
out-of-state banks in an effort
to evade North Carolina law.
The ruling against Advance
America also affects the four
other payday lending compa
nies operating in North
Carolina. They are Check into
Cash, Check ‘N Go, First
American, and CompuCredit.
See N.Cy7C