ROANOKE TIMES
Copyright (c) 1995, Roanoke Times
DATE: Wednesday, December 13, 1995 TAG: 9512130051
SECTION: BUSINESS PAGE: B-8 EDITION: METRO
Company admits mislabeling
WASHINGTON - A carpet manufacturer pleaded guilty Tuesday in the first criminal prosecution ever brought under a 37-year-old law that prohibits the mislabeling of cheap, lower grades of carpeting as better quality material.
Diamond Rug and Carpet Mills Inc. of Eton, Ga., pleaded guilty to seven criminal counts before U.S. District Judge Robert L. Vining Jr. in Rome, Ga., and agreed to abide by a court order regulating its carpet labeling.
Diamond faces a fine of between $500,004 and $1,008,000. Sentencing was set for Feb. 29, 1996.
The case was the first brought under the 1958 Textile Fiber Products Identification Act. Diamond allegedly overcharged consumers about $360,000 on carpets sold from 1989 through 1991 by claiming they contained nylon when they actually were made of polyester or olefin, which are cheaper and less durable fibers.
Diamond also admitted to providing certain customers with guarantees asserting that the carpets were not misbranded even though they were, the department said.
- Associated Press
Inmate seeks term reduction
SINGAPORE - Lawyers for Nick Leeson, whose reckless financial trading and cover-up helped bring down Britain's famous Barings bank, appealed Tuesday for a reduction in his 61/2-year prison term.
A spokesman for defense attorney John Koh confirmed the appeal was filed. It was unclear when a decision would be made.
Leeson, 28, pleaded guilty Dec. 1 to two of 11 charges, and was sentenced the next day. Prosecutors dropped nine charges of fraud and forgery.
Even if his appeal is rejected, Leeson is unlikely to serve out 61/2 years. Good behavior could reduce his sentence by a third, and he is expected to get credit for the nine months he spent in a German jail before being extradited to Singapore.
Leeson pleaded guilty to misreporting the status of $460 million in Barings futures contracts, which led the Singapore International Monetary Exchange to release to Barings $115 million it wasn't entitled to. He also pleaded guilty to forgery.
- Associated Press
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