In other items: Biotech stock sale raises $4.1 million; no verdict yet in Ebbers trial; and defense scrutinizes HealthSouth executive's punishment.
Gov. Christine Gregoire is expected to name a new head of the state’s Department of Financial Institutions next week.
Industry sources say the new director will be either Scott Jarvis, currently Washington’s deputy insurance commissioner for consumer protection, or David Kroeger, who serves as director of banks within the financial institutions department.
The former director, Helen Howell, resigned effective Feb. 25. Gregoire’s office declined to comment yesterday, as did Jarvis and Kroeger.
Biotech stock sale raises $4.1 million
NeoRx said yesterday it has raised $4.1 million through a private stock sale.
The Seattle biotech company said it sold 3.3 million shares at $1.25 apiece, plus warrants to purchase 1.3 million more at $2 per share. The company plans to use the money to start clinical trials of NX 473, an experimental chemotherapy drug designed to have milder side effects.
Rodman & Renshaw acted as the placement agent for the financing.
No verdict yet in Ebbers trial
A jury began deliberations in New York but did not reach a verdict yesterday in the trial of former WorldCom chief Bernard Ebbers, accused of orchestrating the $11 billion accounting scheme that bankrupted the company.
The panel of seven women and five men spent about five hours discussing the case before adjourning for the week. They were to resume deliberations Monday morning.
Just before going home, the jury sent a note asking to review more than three dozen exhibits and portions of testimony from the trial, including some key testimony from star prosecution witness Scott Sullivan.
Sullivan, who was chief financial officer under Ebbers, testified that Ebbers pressured him into falsifying financial records at WorldCom from 2000 to 2002.
Defense scrutinizes exec’s punishmentRichard Scrushy’s lawyer began a combative cross-examination in Birmingham, Ala., of a former HealthSouth executive yesterday, suggesting the government witness got to play golf as part of his punishment for a $2.7 billion fraud.
Defense attorney Jim Parkman went on the attack as soon as former HealthSouth chief financial officer Mike Martin completed testimony over four days depicting Scrushy as a key player in the fraud while CEO of the medical-rehabilitation chain.
Martin has pleaded guilty in the scheme, and Parkman brought out that his punishment of six months of home detention included seeing his wife and children, watching a big-screen TV and once playing golf at a swanky country club.
Martin, whose sentence allowed him to work away from home, said he hates the sport but did it for business.
Compiled from Seattle Times business staff and The Associated Press