Court Appointed PACE Bankruptcy Trustee, Edwin Allman III, has subpoenaed  for seven Pace accounts held by Platte Valley Bank of Platte City, Mo. It appears Allman is still trying to unravel who owns what and who owes what in the case of the imploded PACE Airlines. Allman states he considers the owners to be William Rodgers and Lee Booth although earlier reports said Rodgers had signed away his ownership.

If anyone is following the case and has taken the time to pull any public records please feel free to comment or upload anything you have.

U.S. Prosecutors claim Mexican drug cartels laundered hundreds or even billions of dollars through one of the largest banks in the United States. For four years, between May 2003 and May 2007, Wachovia Bank traded with Mexican exchange houses which served the laundering of drug trafficking groups.

The Justice Department claims that Wachovia traded well over $350 Billion with Mexican "casas de cambio” (currency- exchange houses) between 2004 and 2007. These exchange houses are used by “immigrants” to send money back to Latin American but prosecutors claim drug cartels also use these same facilities to laundry and transfer their own money. Prosecutors further claim Wachovia transferred over $4 Billion in bulk cash from foreign Latin exchanges to Wachovia accounts in the U.S.

Prosecutors claimed the Bank does not have proper controls in place to prevent the use of these money exchanges for illegal activity. The Lead Prosecutor in Miami U.S. Attorney Jeffrey H. Sloman actually stated Wachovia blatantly disregarded the banking laws:

"Wachovia’s blatant disregard for our banking laws gave international cocaine cartels a virtual carte blanche to finance their operations by laundering at least $110 million in drug proceeds. Corporate citizens, no matter how big or powerful, must be held accountable for their actions."

The $160 million fine represents the biggest penalty ever imposed under the Bank Secrecy Act, which requires financial institutions to carefully track transactions to detect suspicious activity. Wachovia has agreed to pay $110 million which constitutes the profits from these transactions and $50 million in fines while the actual prosecution has been delayed for 12 months while Wachovia meets it’s obligations under the settlement.

Verizon is putting the final touches on it’s new plans and for the most part if you want any type of phone that does more than dial a number you WILL buy a data plan. Overall Verizon says this will average out for most users so the monthly cost are about the same yet they also admit they see the revenue per user continuing to rise.

In what is the final act for PACE Airlines Judge Thomas Waldrep has entered PACE into involuntary Bankruptcy. On December 2, 2009 multiple creditors filed a petition to start the liquidation of PACE Airlines almost a year and half after PACE stopped paying it’s lease agreement with Smith Reynolds Airport. Interesting enough nobody representing PACE Airlines showed up at the December hearing.

We posted back on October 27th that it had been reported that CEO William Rodgers had signed away any interest in the company. What information was available appeared to point to Lee Booth had taken various assets and was likely setting up shop in Burlington however that is about all that was known or maybe rumored would be better. It appears the attorney appointed by the courts to handle this case is as much in the dark as everyone else as he was quoted as saying, “I will examine corporate officers under oath to determine the ownership.” Edwin Allman III who was appointed as Trustee further went on to say if he can recover any assets the legal fees will be paid first then creditors with the 400 or so employees owed back pay “would be pretty high up" the list of creditors”. While I would like to think he is right I have enough experience with things like this to know employee back pay will be considered  unsecured debt while the multiple companies owed $10 million or more will likely be seen as secured debt  and secured debt always gets paid first.

Of course there are still charges against William Rodgers for failure to pay insurance premiums while months later the N.C. Labor Department is still “investigating” the failure to pay wages.

My last comment on this is at what point is the Airport Commission called to the carpet on allowing PACE to go a year without paying it’s lease obligations? Remember the Airport Commission is also in hot water for allowing it’s contractor in charge of runway expansions per a 1997 Grant to not pay it’s subcontractors. I’ve not heard or seen anything else on this and the Journal certainly hasn’t covered this.

Reports and rumors are coming out that Verizon will be releasing multiple new phones in the upcoming months. From the much anticipated iPhone to more Android based phones it looks like Verizon has finally decided it’s time to upgrade their less than unique phone lineup.

The latest rumor to show up is all about a new Android phone from Motorola called the Devour. Basically it appears to be a slightly less advance version of the Motorola Droid so expect to see pricing be slightly lower although it will run Android 2.1.

It also appears HTC will be releasing an update for the Eris to push it to Android 2.0 or 2.1. Of course how quickly Verizon will make the update available is anyone’s guess. If your wondering why running Android 2.x is such a big deal it has several major updates such as supporting multiple Exchange accounts as well as a browser update.

Of course with CES coming up there’s always a lot of news and rumors about new products and not to be outdone Palm is rumored to have a new Palm Pre Plus ready for Verizon. This will be a slightly larger and newer version of the Palm Pre.

Lastly will there be an iPhone for Verizon? It was a given last year but as the year ended most had cast doubts on Verizon’s iPhone plans. There are those however that still see an iPhone in Verizon’s future probably sometime in the summer as Apples releases it’s newest version of the huge successful iPhone. With little to go on the belief is the new iPhones will be smaller, have a 5MP camera, be built by AsusTek vs. Hon Hai which makes the current models, use a Qualcomm hybrid CDMA/WCDMA chip that allows multiple cell carrier signal types  and show up mid year.

Of course let’s not forget to warn anyone looking at Verizon for a new phone they have enacted a new $350 cancellation fee on their “Smartphone” line so if your thinking of buying now and switching if and when they release an iPhone you may want to change those plans.

Word is Dell will keep the Winston-Salem plant open for a few more months allowing around 400 workers a little more breathing room. No further information is out there as of yet but I’m sure we will see local leaders take all the credit somehow.

Dell has informed the state that it believes it met the requirements during it’s years of operating in North Carolina and will not repay those monies. Governor Bev Purdue and other state representatives have said Dell would be forced to repay all the incentive money they were given however Dell has claimed some $6 million is covered in the agreements and will not be repaid. The Governor’s Office has released a “corrected” statement saying Dell may be able to keep some North Carolina taxpayer money.

Animated map showing unemployment rates growing across the nation.