http://Www.thecharlottepiost.com 6C CiEtarlotte Post THURSDAY, AUGUST 3, 2006 BUSINESS Elderly targets of scams By Eileen Alt Powell THE ASSOOArfD PRESS NEW YORK - The man who telephoned Henrietta Iblhurst several months ago claimed he had great news for her - she had won the $22,000 second prize in a national magazine contest. The caller said he and his company would pay the taxes, so all Tblhurst had to do was cover $6,800 in lawyer fees. Tblhurst, an 89-year-old widow who hves in Santa Monica, Cahf, says "they sounded so authentic, and it got me t.hinkiTig about all the good things I was going to do with the money” So she went to her bank and borrowed the cash against her credit card, put it into a copy of the m^azine as directed and handed it over to the “courier” who arrived at her doomtep to collect it- Unfortunately there was no contest, and Tblh.urst has httle hope of ever recovering hea* money fix)m the scam- mers- Tblhurst was one of thou sands of elderly Americans who fall victim to securities or lottery fraud every year. Securities fraud covers investment problems from brokers who chum stock accounts to bogus oil and gas schemes; lottery fraud is often of the "you may already be a winner” come- on variety The problem has become so widespread that con sumer advocacy groups and government regulators are stepping up efforts to better educate seniors about the perils so they can avoid the fraudsters. Tblhurst, who is retired but does volunteer work with several agencies, said she is embarrassed that she was conned but has decided to share her story because she hopes it will warn others to be careful, Mary L, Schapiro, vice chairman of NASD, the pri vate-sector regulator of bro ken based in Washington, D,C,, said one of the most frightening aspects of scam- ming is how sophisticated the con artists have become in tailoring their pitches to the victims, A recent study conducted for the NASD Investor Education Foundation in cooperation with the Califoinia-based WISE Senior Services ag^cy and the AARP Foundation, foimd that many of the fraudsters worked hard to befriend the elderly ‘Tf they thought the vic tims were religious, they’d pray with them at the begin ning of a caQ,” Schapiro said, "Or they’d latch on to some other affinity, like an Itahan last name. And they often dropped the names of impor tant people who allegedly participated in their pro grams,” The study also found that contrary to expectations, investment fraud victims appeared to be more frnan- dally hterate than non-vic tims, making them more hkely to rely on their ovrai ' experience in making invest ment decisions, Schapiro also said investor fi'aud goes dramatically undeiTeported because elderly victims not only feel sOly or emban'assed that but also fear’ that if they acknowledge it “people will think they’re no longer capa ble and they’ll lose control over thedr money or their lives,” movers shakers M&F Bank has added key members to its business development staff in the Charlotte and Triad markets. In Charlotte, Bruce C, Osterhout was named senior vice president/dty execu tive, and Veronica R, Dawkins as vice president/commerdal relationship manager, Calvin Slade was named vice president/relationship manager in Winston-Salem, Osterhout is a veteran banker with over 30 years’ ejqjetience in commerdal bankil^, commerdal credit, man^e- ment, sales and training, Dawkins’ background indudes resi dential and commerdal real estate, commerdal and ccaisumer credit and private lending. Slade’s background indudes broad lending and financial services experi ence, induding Small Business Administration, economic develop ment, mortgage, consumer and com merdal lending, and branch manage ment. • Zerrick Bynum has been appointed chief financial officer at RoHoverSystems, He will be responsi ble for the Charlotte-based company’s finandal strategies. Before joining RoUoverSystems, Bynum was founding prindpal of Charlotte Franchise Partners LLC, a private investment firm. He was also an investment banker at Donaldson Lufkin & Jenrette and Bowles HoUowell Conner &, Company where he conducted acquisitions, mergers and restructurings. • Rai Glover has been named to the Charlotte Regional \Tsitors Authority board of directors. Glover, a senior vice president and market development manager at Bank of America’s Charlotte headquarters and North Carolina, was nominated by Charlotte City Council. ILLUSTRATION/JIM HUNT Difficult but valuable employees pose dilemma Supervisor/employee relationships are often strained By Joyce M. Rosenberg JHEASSOaAJED PRESS NEW YORK - Your most pro ductive employee drives you nuts _ so nuts that you realize you just don’t like her. But she’s so valuable to your small business. So. what do you do? Any company owner who has employees is likely at some point to run into the problem of the tal ented and highly competent but difficult worker. Small business owners who have been in that sit uation recommend dealing with employee problems when they’re in the embryonic stage _ the longer you let things fester, the harder it will be to resolve them.. And along the way your company including your other staffers, are likely to suffer. Carol Fass, who owns a pubhd- ty firm bearing her name in New York, recalled two workers who were quite valuable _ up to a point. “They were very good publicists and excellent writers and excel lent with the clients, but they did n’t create an environment here that I enjoyed - I didn’t want to have an environment full of ten sion and friction,” Fass said. So, Fass said, she asked both workers to leave; they were poi soning the atmosphere in the company and Fass realized she was losing the respect of her other employees. Her business has sur vived quite well without her diffi cult staffers. “No one is irreplaceable,” Fass said. But Pass doesn’t believe that fir ing a difficult worker is the only solution. She recalled another sit uation with an aitirely different outcome: “I had one person, a yoimg woman, and when she first start ed working for me was fresh and kind of presumptuous,” Fass said. “So I said, ‘you really shouldn’t be taikir^ to me this way’ She total ly changed, she really got it and she worked for me for many years and I adored her.” Fass was doir^ one of the most important thir^ an owner or any boss should do, give an employee feedback. Human resources con sultants advocate communicating with workers on a regular basis, letting them know what they’re doing ri^t and wrong. Feedback is probably the only way you can get a difficult staffer to change for the better. Many small business owners understandably are queasy about confix)ntii^ staffers, for a variety of reasons. It certainly can be an unpleasant encoimter. But, said Nancy Shenker, prin cipal in the ONswitch, a market ing firm in Thomwood, N.Y, “you have to learn to be comfortable communicating with people because sometimes they may not even be aware of the thin^ they do that are driving other people crazy” Sometimes, she noted, the boss may be part of the problem. “Make it Sve’ - how can we work better together?” Shenker said, ‘Maybe they have a short list of things that you do that drives them crazy” Shenker said some problems might be avoided fium the get-go. She tells incoming staffers some of her pet peeves, so theyll know to avoid some of the behavior that can cause difficulty In the end, thov^, even if a worker is very talented and helps the business, he or she could be doing aa company more harm than good. “If somebody really gets under your skin and it’s a small office, it can get in the way of work being done,” Shenker said. “Any rela tionship that ultimately is a toxic relationship ultimately has to end.” But beware: If you do decide to fire a worker, you need to be sure that you have a solid case in Ihe event that ihe dismissed staffer turns around and sues you. Wall Street’s wave of news By Christopher Wang THE ASSOCIATED PRESS • NEW YORK - Wall Street managed a solid advance last week as investors grew cautiously optimistic that ihe Federal Reserve might finally be done hiking interest rates. But with so much lingering doubt about the economy and geopofitical tension, only one thing is certain: It’s not over until it’s over. A sharp slowdown in gross domestic product growth during the second quarter gave investors a glimmer of hope that the Fed might indeed stop lifting rates at its Aug. 8 meeting after two years of consecu tive increases. Althov^ inflation mea sures extended beyond the Fed’s comfort zone, investors appeared to be convinced that the economy has slowed enough. The Dow Jones industrials had their best weekly percentage gain in more than a year. “The market is telling the Fed, “Hey it’s time to stop raising rates,”’ said Rick Pendergraft, a research analyst with Investors Daily Edge. “Whether or not the Fed listens, that’s a different case.” As always, this week’s economic data could upset investors or give them a rea son to push stocks higher. Analysts nonetheless maintain that the market should continue fluctuating as a hei^t- ened distaste for risky investments keeps traders to tiie sidelines, partiaflarly dur ing the summer vacation months. More signs of a gradually slowing econo my in the Institute for Supply Management’s manufacturing index and the Labor Department’s monthly employ ment report this week would serve to bol ster the outlook for interest rates. However, figures sharply above or below expectations would dismantle what little confidence Wall Street has managed to muster. Meanwhile, the persistent stream of earnings reports presents opportunities for gains in individual sectors, Pendergraft said. The 64 percent of companies in the Standard & Poor’s 500 index that have already released r^ults have seen average profit growth of 16.6 percent, with almost 70 percent beatir^ analysts’ expectations. ‘T think a lot of the bear sentiment that had been built up (dining the May-June decline) caused people to get more skepti cal of the market,” Pendergraft said. ‘We’re seeing a bigger pop than last quar ter because we weren’t at this point in the cycle at the time.” Wellness plans offered to more small business employees By Joyce M. Rosenberg THE ASSOCIATED PRESS NEW YORK - At PetSafe Inc., employ ees can earn points toward gift certifi cates by going to the gym and the doctor. And at Eastern Pinandai Florida Credit Union, staffeie get $100 towai-d thdi- annual health dub fees. These and many other small businesses are offering perks known as wellness ben efits in hopes of lowering their health care costs and promoting a happier and 'more productive work environment. And, in turn, making themselves more attrac tive to prospective employees. PetSafe, a pet products company based in Knoxville, Tfenn., has a program that awards points to workers who go to the doctor, donate blood, work out in a gym or- take wellness dasses. Laurie Macnair, whose title at PetSafe is director of talent development, said that at the end of each quarter, staffers can redeem their points for movie passes, lunches, even gift cer tificates of up to $100. Macnair said the idea for PetSafe’s wellness benefits actually originated-with staffers. But the company has agreed to sponsor the various parts of the program, which also indudes weight loss contests and paying for smoking cessation aids such as nicotine patches. It has also built a gym that’s fi:ee for all employees.

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