The Daily Tar HeelThursday, August 31, 19893A
Miserly hotel owner convicted of income tax evasion
From Associated Press reports
NEW YORK Leona Helmsley,
the persnickety hotel queen quoted as
saying "only the little people pay
taxes," was convicted Wednesday of
evading $1.2 million in income taxes
by charging personal expenses to her
-business empire.
; The federal jury acquitted Mrs.
Helmsley, 69, of the most serious
charge against her conspiring to
extort payoffs from vendors.
Pictured as a regal perfectionist in
ads for Helmsley luxury hotels, Mrs.
Helmsley was portrayed in court as an
"abusive, penny-pinching tyrant
part of a defense strategy of arguing
she was the victim of spiteful ex
employees. In opening arguments, her own
lawyer labeled her vva tough bitch."
Mrs. Helmsley shook her head
while listening to the litany of guilty
verdicts on 33 of 41 counts. Former
aides Frank Turco and Joseph Licari
were convicted of assisting in the tax
evasion scheme.
She walked past hundreds of
reporters, photographers and
bystanders on the courthouse steps,
got into a limousine and departed
without comment.
"Of course, we'll appeal," said
Joseph Benfante, lawyer for Licari.
Mrs. Helmsley remains free pend
ing sentencing Nov. 14. Each of the
33 counts carries three to five years in
prison. She also faces fines of up to
$8 million.
The jury found Mrs. Helmsley'
evaded federal taxes from 1983
through 1985, most of it by billing
$3.1 million in expenses from the
Helmsleys' Greenwich, Conn., man
sion, Dunnellen Hall, to their hotel
and real estate business.
Among the expenses were more
than $1 million for a pool enclosure
with a marble dance floor; jade fig
ures worth $500,000; a $130,000
indoor-outdoor sound system similar
to one Helmsley had admired at
Disney World, and thousands of dol
lars in landscaping.
"Today's verdicts should widely
serve as a reminder that no one,
regardless of how wealthy or how
well-insulated by underlings, under
the law is free to flaunt the tax laws,"
said U.S. Attorney Benito Romano.
He said it was too early to say what
sentence prosecutors would seek.
"We gave a very fair verdict. It
was very hard," said David Samuel, a
member of the jury that deliberated
for five days.
Mrs. Helmsley and her husband,
Harry, still face prosecution on
charges of evading state taxes; no trial
date has been set.
Helmsley, 80, heads a $5 billion
empire that includes 27 hotels the
Helmsley hotels in New York City
and the Cleveland-based Harley
chain. He was indicted with his wife
in 1988 but was found mentally
incompetent to stand trial.
In addition to expenses at
Dunnellen Hall, prosecutors alleged
that $320,172 in Mrs. Helmsley's per
sonal purchases, including thousands
of dollars in designer clothing, were
charged to the Park Lane Hotel in
New York.
Another item was a $45,000 silver
clock in the shape of the Helmsley
Building, a birthday present to Harry
Helmsley from his wife.
His wife's image took a beating at
the trial. Already described as a
finicky "queen" in Helmsley ads, she
was depicted as arrogant and mean
spirited. Her former housekeeper testified
that Mrs. Helmsley once told her,
"We don't pay taxes. Only the little
people pay taxes."
from page 1
-That was not a major part of the
store's business, but the loss of it may
cause an inconvenience to students,
Tufts said.
The Bull's Head Bookshop, a part
of Student Stores, also sells assorted
, greeting cards and posters, but is
evaluating its stock, Tufts said. The
"bookshop is allowed to sell posters
that have an educational value.
"We're sorting through what we
have to make sure that it fits within
' the guidelines," he said. "There is a
. fine line between a naked creature
you put on your wall and a piece of
art with an educational value."
Morton said he thought Fox's rul-
ing was a fair one. "Right now I'm
. satisfied."
Tufts said a drop in sales, the clos
ing of the Pit Stop snack bar and the
-need for capital could limit the
amount of money Student Stores is
able to contribute to a University
-scholarship fund. The funds went
toward undergraduate scholarships,
graduate fellowships and professional
. schools, he said.
"It's possible that in the short term
there could be a temporary reduction
with an eye toward strengthening the
'. store in the long run."
Maaike Pike, assistant manager of
, University Mall's Hallmark store,
said Fox's ruling would have little, if
any, effect on Hallmark's business. "I
don't even see them as our competi-
' tion. Most people would have come
to us anyway, ior tne HaiimarK
name."
T Lorraine Young, assistant manager
of Foister's Image Center, said the
ruling would have a positive effect on
her photo processing operation, but
other businesses may benefit more. "I
think it will have some positive influ
ence for us, but our location may be a
problem. We'll see a slight rise over
all, but people may be more apt to go
to the one-hour photo processing
place at the mall."
Student Stores will still be able to
sell T-shirts, sweatshirts, school sup
plies, computers and merchandise
bearing the UNC logo, Tufts said.
Chuck Helpingstine, owner of
Johnny T-Shirt, a Chapel Hill store
that specializes in UNC clothing, has
said that the restrictions on what
Student Stores can sell do not go far
enough.
"The best thing that supports the
case is the law itself. But the law has
been reinterpreted by the state attor
ney general's office and the media. If
people would just read the law, I'd
rest my case right there."
Fox has said he ruled that Student
Stores could sell T-shirts because the
Umstead Act allows UNC-system
campus stores to sell educational sup
plies, gift items and personal-use
items. "UNC is allowed to sell T
shirts because they fit under the
statute as gift items."
Economists say recession unlikely
From Associated Press reports
WASHINGTON Americans'
personal incomes rose a brisk 0.7
percent in July while consumer
spending climbed at the fastest rate
since April, the government said
Wednesday in a report providing
more good news about the country's
economic prospects.
The Commerce Department said
the rise in incomes, fueled by rapid
growth in wages and salaries, was
the biggest monthly gain since a 1
percent increase in March.
The department said that con
sumer spending also posted a 0.7
percent increase last month, the
fastest advance since a 1.2 percent
rise in April.
The government also made signif
icant revisions to previous months,
showing that income growth and
consumer spending were not as slug
gish as previously believed.
Private economists said the com
bination of the strong July increases
and the upward revisions in earlier
months showed that the current eco
nomic expansion, which this month
became the second longest in U.S.
history, was picking up steam.
Just a month ago, there were
widespread fears that just the reverse
was occurring, with many analysts
predicting, on the basis of weak
reports, that the country was in dan
ger of toppling into a recession.
"The economy was not nearly as
weak in the spring," said Bruce
Steinberg, senior economist at the
New York brokerage firm of Merrill
Lynch. "The image of an economy
on the verge of a recession has been
changed by these revisions."
The government on Tuesday sig
nificantly revised upward its estimate
of total economic growth, putting the
increase in the gross national product
from April through June at a healthy
2.7 percent annual rate instead of the
anemic 1.7 percent rate reported a
month ago.
Most of the upward revision in
GNP growth came from a doubling
of the estimate of how much con
sumers spent during the April-June
quarter.
Wednesday's report showed that
consumer spending was even
stronger in July, primarily because of
a surge in sales of autos spurred by
incentive sales programs aimed at
reducing a high inventory of unsold
cars.
With car sales remaining strong in
August, analysts looked for total
consumer spending this quarter to
surpass the second-quarter pace.
Since consumer spending accounts
for two-thirds of total economic
activity, that would be good news for
the economy.
Steinberg cautioned, however, that
the steep discounting to reduce car
inventories and buyer concerns about
announced price hikes on the 1990
models would very likely translate
into lackluster car sales in the final
three months of the year and depress
consumer spending during that quar
ter. But Sandra Shaber, an economist
with the Futures Group, a
Washington consulting firm, said that
she expected other areas, such as
sales of clothing and consumer elec
tronics and more travel spending, to
take up the slack from an expected
drop in car sales.
"We have had some startling revi
sions in the economic data which
have chased away the recession fears
and put a whole different look on the
strength of the marketplace," she
said. "Consumer spending was twice
as strong as we earlier thought and
that strength seems to be continu
ing. The Bush administration is pre
dicting that the economy should
grow this year by a healthy 2.9 per
cent, a rate that private economists
are now agreeing is well within
reach.
c p Vf -'if f
A
new
place
for lunch
;with an
old friend
' Northern Italian Cuisine
Carr Mill Mall, Carrboro
Rating - Mobile Travel Guide
4 4
4
Send The DTH to
Mom and Dad
Call 962-1163
for details
tuft
ft
A
0 4
Make a
contribution to
life after death.
THE AMERICAN HEART
ASSOCIATION
MEMORIAL PROGRAM.
WERE FIGHTING FOR
MDURUFE
A
American Hoart
Association J
This spaqp provided as a public service.
u a i v y v y il
Stereo Sound's "Sweet Sixteen" Anniversary Sale! The world's best audio, video and car stereo components.
i nwin i ivmi ikj o koi pi iuco. nuo, i u yjjyi i ici iij ui ii iicifci iiijui luuiy, nuw iwwi ti id!
ERO DOWN.
EERO INTEREST &
ZERO PAYMENTS
FREE T-shirt
with purchase
of any item
Valued at $25
or more.
(Limit one per
customer.)
CD PLAYERS
Kenwood Remote-control CD
Player with 4x oversampling,
programmable, full-function remote.
(DP-2010) Reg. 279 Save $50 . . $229.95
NAD Remote-control CD Player.
High performance, no frills. (5325) .
Reg. 299 $279.95
I I I ;
I i V' u
L. nr- -.,r,i,lMKi
SPEAKERS
. Includes free
lO-year
warranty and
1-year speaker
trade-up
Boston Acoustics Speakers.
A40 Reg. 180 pr $83.95 ea.
A60 Reg.240pr $110.95 60.
Polk Audio Bookshelf Speakers.
Our best seller. (5 Jr.)
Reg. 370 pr $165.95 ea.
Klipsch Bookshelf Speakers.
A legend in sound. (KG-2)
Reg.420pr $195.95 ea.
(( ho
'til January, 1990!
Now through Sept. 30-qualified customers can
make any purchase of $300 or more with 0
interest and no payments until Jan., 1990.
m i
D
Yamaha Remote-control CD
Player. Our best seller. 8x oversampling.
18-bit digital filter. (CDX 520)
Reg. 329 $299.95
I Reg. 44Q
KEF Bookshelf
Speakers.
British sound-Uni-Q
desiga (C-35)
pr $190 ea.
CD CHANGERS
1
Kenwood Remote-control CD
Changer with 6-disc magazine, 4x
oversampling. (DP-M4010) Reg. 349
Save S50 $299.95
Yamaha Remote-control CD
Changer with 6-disc magazine plus 1-disc
tray. 4x oversampling. (CDC 500)
Reg. 499 Save S50 $449.95
RECEIVERS
Kenwood Remote-control
Receiver with 60 watts per channel,
equalizer, motor-driven volume control.
(KR-A5010) Reg. 299 $269.95
Yamaha Remote-control
Receiver with 50 watts per channel,
variable loudness, record-out selector.
(RX 530) Reg. 399 $369.95
VIDEO RECORDERS
Philips 4-headVHS VCR
with remote control, 8-event, 1-month
programming. (VR 6485)
Reg. 429 $359.95
Philips 4-head Hi-Fi VHS VCR
with 8-event, 1-month programming, on
screen programming. (VR 6585)
Reg. 599 $499.95
IT"
Kenwood Yamaha System
Kenwood KR-A4010 40 watt
Receiver
Kenwood DP-1510 Compact
Disc Player with 4x oversampling
Yamaha NS 535 3-way Speakers.
Reg.650 Save $15CH
$499.95
I
-
1
I- t
TVs AND BIG-SCREENS
Mitsubishi 13" Remote-control TV.
(CS-1346) Reg. 329.95 Save $50 .$279.95
mmm fBl
ml.
NAD Remote-control Receiver
with 50 watts per channel, power
envelope design producing 200 watts
per channel of tone burst power for
music. (Model 71CO) Reg. 749
Save $250. . .$499.95
(Slightly blemished-full warranty. Limited quantities.)
Mitsubishi 4-head Hi-Fi VHS VCR
with remote, rapid start, twin digital tracking.
New, but already our best seller! (HSU 51)
Reg. 699 $599.95
CASSETTE DECKS
Kenwood Dubbing Cassette
Deck with Dolby B and C. high-speed
dubbing. (KX 58) Reg. 229 $179.95
Yamaha Cassette Deck
with Dolby B and C (KX 230)
Reg. 269 .$249.95
Kenwood Autoreverse Cassette
Deck with Dolby B and C. Hx Pro. Q(X 3510)
Reg. 299 Save 70 . . $229.95
CAR STEREO
We offer professional car stereo
installation at all locations!
JVC KSR 130J Cassette Receiver.
Digital AMFM. 8 watts per channel, clock.
autoreverse. power fader control.
Reg. 219 $149.95
Alpine 7167 Cassette Receiver.
AMFM autoreverse. 12-preset tuner, clock.
Reg. 220 $199.95
I 1 ;s
X
Mitsubishi 26"
Remote-control
Stereo TV has
flawless reproductioa
includes sleep timer,
on-screen display and
more. (CS2656)
Reg. 699
Save $100 $599.95
Philips 27" Remote-control
Stereo TV Monitor with picture-in-picture.
on-screen menus, S-VHS input
(27J233) Reg. 899 Save $100 . . $799.95
31" to 60" big-screens are
on sale and ready for
immediate delivery.
Nakamichi Cassette Deck
Deck with Dolby B and C. Excellent sound at
a budget price. (CR-1A) $339.95
" Plus 2 FREE Nakamichi tapes
Yamaha YCR 420 Cassette
Receiver with 20 watts x 4. Dolby B.
continuously variable loudness.
Reg. 399 $325.95
Bazooka T-62 Bass Tubes.
6V2" bass tubes for big bass in any space.
Reg. 219 $189.95
ACCESSORIES
Ask about our Frequent Buyers Program-
a great way to save money on accessories.
Kenwood Special Purchase!
Refurbished components
Limited Quantities!
Kenwood Programmable CD
C h a n g e r with 6-disc magazine.
(DP-M97) Reg. $349 $179.95
Kenwood 130-watts-per-channel
Receiver with Dolby surround sound,
theatre and stadium effects. lO-watts-per-channel
rear amp, remote, spectrum
analyzer, equalizer, video inputs and lots
more. (KRV 127R) Reg. 699 . . . . $339.95
Kenwood Dubbing Cassette
Deck with Dolby B, high-speed dubbing.
(KX 57) Reg. 229 . . $99.95
Kenwood Dubbing Cassette
Deck with full logic, Dolby B. high-speed
dubbing. (KX 67W) Reg 299 . . . $139.95
Since 1974, A Total Commitment to Serve Our Customers
r7
I n-M , r.nn , , i , , , .
wwm
TDK SA-90 $1.59 ea.
Maxell XL II 90 . .... .$1.95 a.
Buy lO and get a waist pouch FREE.
Sony Lightweight Headphones.
Reg. 25 ... $9.95
Raleigh
7105 Glenwood Ave.
(Across from Hardee's) . . . (Next to Circuit City)
942-8546 Durham 782-41l1
3111 Shannon Rd.
(Across from Belk at South Square)
4VCJ-60VV
Chapel Hill
210 West Franklin St.
Easy
Financing
Available
AUDIO o VIDEO o GAR STEREO
Greensboro
2705 High Point Rd.
(Next to McDonalds)
292-7400
Winston-Salem
1608 S. Stratford Rd.
(In front of Circuit City)
768-C150
VISA
Regrettably, enon In prices and specifications do occur In printing. We reserve the right to correct such errors. Some Items similar to Illustrations. Some quantities limited.