Consumers who lost money purchasing two popular skin creams which were labeled as ‘body slimming’ have been helped by a recent FTC ruling.  The Federal Trade Commission will be mailing over 10,000 checks to consumers which will refund them towards purchases of two skin creams which were marketed by the company L’Occitane, Inc..  Amounts sent to consumers will depend on how much spent on the product.

The refunds come on the heels of a January 2014 settlement that the company had agreed to with the FTC.  Details of the agreement were for the company to halt claims that the  Almond Beautiful Shape and Almond Shaping Delight skin creams have body-slimming capabilities and are clinically proven.  These creams are quite expensive with seven ounce bottles retailing for $48 when purchasing the Almond Shaping Delight and $44 for the Almond Beautiful Shape cream.

The settlement comes as part of ‘Operation Failed Resolution’  where the Federal Trade Commission spent considerable efforts to stop misleading claims for products and services that promoted easy weight loss and slimmer bodies.   Several companies and products were targeted including Sensa marketers, HCG Diet Direct and LeanSpa.

According to a press statement, L’Occitane launched an advertising campaign in 2012 claiming that Almond Beautiful Shape could “trim 1.3 inches in just 4 weeks,” and that it was a “cellulite fighter;” and that Almond Shaping Delight has “clinically proven slimming effectiveness,” and will “visibly refine and reshape the silhouette, to resculpt and tone the body contours.”  L’Occitane’s ads also claimed that both products could produce a “noticeably slimmer, firmer you … (in just 4 weeks!).”  More information on the settlements can be found here - https://www.ftc.gov/news-events/press-releases/2014/01/sensa-three-other-marketers-fad-weight-loss-products-settle-ftc

A recent study has determined that investors dealing with U.S. Treasury securities may want to check the calendar when investing.  The report notes the best time to invest in these securities is when the weather changes to springtime.

The data showed that October was the best month where monthly returns peaked on the securities and dropped by as much as 80 basis points over the winter months leading up to the lowest point in April.  The cause of the drop is suggested to be what researchers describe as seasonal depression or better know as SAD (seasonal affective disorder).

“Maybe it seems like a small number, but in the world of Treasuries, that kind of a systematic difference is huge,”  study co-author Lisa Kramer, an associate professor at the University of Toronto Mississauga was quoted as saying in a press statement.    She continues, “Maybe they’re not clinically-depressed and feeling the impulse to crawl back into bed but my own research suggests that they’re not as buoyant during some seasons of the year and it might not be very noticeable to an individual, but there do seem to be really broad effects.”

Kramer penned the research study on SAD along with Professor Mark Kamstra who is with York University’s Schulich School of Business.  Also part of the research was Professor Maurice Levi of the Sauder School of Business at the University of British Columbia.   Kramer had previously penned a 2011 paper titled “This Is Your Portfolio On Winter” describing the risks to those suffering from the SAD depression.

Gilbane Building Company has agreed to pay the sum of $1.1 million to satisfy claims of false claims for a company it merged with in 2010.  In November, 2010, W.G. Mills Inc and Gilbane Building company merged but had created a front company in order to gain a coveted contract with the Coast Guard.  W.G. Mills had setup a company known as Veterans Constructors Incorporated (VCI) to gain a contract specifically awarded to Service Disabled Veteran Owned Small Businesses (SDVOSBs).

The idea of a Service Disabled Veteran Owned Small Businesses (SDVOSBs) is that it is operated and managed by service-disabled United states veterans along with not being affiliated with a larger entity.  The case brought against W.G. Mills was that the company setup what appeared to be a SDVOSB but was actually just a front for the larger company.

In a press statement, U.S. Attorney A. Lee Bentley III said, “Those who apply for federal contracts must be honest and forthright in their dealings, especially when seeking contracts set aside for service-disabled veterans.  Working jointly with DOJ and our agency partners has allowed us to make substantial recoveries in these types of cases in recent months.  Our office remains committed to pursuing these matters vigorously.”

The lawsuit was filed in the Middle District of Florida and is captioned United States ex rel. Michael Jeske and Samuel McIntosh v. Gilbane Building Company, W.G. Mills, Inc., and Veterans Constructors Inc., Case No. 8:11-cv-1205 (M.D. Fla.).  The claims resolved by the settlement are allegations only; there has been no determination of liability.

The owner of a Los Angeles medical supply company has been found guilty on four counts of health care fraud in charges brought  by the U.S. Department of Justice.  The fraud was part of a $3.3 million scheme which involved the company and MediCare.

The announcement of the conviction returned by a federal jury in Los Angeles was made by several government officials including Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Stephanie Yonekura of the Central District of California, Special Agent in Charge Glenn R. Ferry of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Los Angeles Region and Assistant Director in Charge David L. Bowdich of the FBI’s Los Angeles Field Office.

The owner of the medical supply company know as Colonial Medical Supply - Hakop Gambaryan - was convicted on the four counts due to cash payments made known as ‘kickbacks’ between March 2006 and December 2012.  The payments were made to medical clinics in return for fraudulent prescription for medical equipment such as power wheelchairs which were not medically necessary for patients.

Several of the patients were able to walk without the need for assistance but had powerchairs delivered personally by Hakop Gambaryan.  One patient lived in a second floor apartment with no elevator but was provided with a powerchair.  Another patient’s home could not fit the powerchair so the defendant left the unit in the garage of the patient.  Even more shocking was the defendant adding patient signatures to consent forms when in two cases the patients had passed away.

Hakop Gambaryan billed $3.3 million in false and fraudulent claims to Medicare according to the case filed in court and received $1.7 million from these claims.

Sentencing is scheduled for later in 2015.

A new report issued by the Center for Social Development (CSD) in the Brown School at Washington University in St. Louis shows that American homeowners kept most of their wealth during the Great Recession.  Those that rented on the other hand, suffered great losses during the period.

“The proportion of homeowners who lost net worth was larger than the proportion of renters who did so; however, renters were more likely than owners to lose at least 25 percent of their net worth during this time,” said lead author Michal Grinstein-Weiss, PhD.  The study, Homeownership, the Great Recession, and Wealth: Evidence From the Survey of Consumer Finances,” appears in the journal Housing Policy Debate.

SOme interesting observations resulted from the report.  While many of the homeowners did lose net wealth during the time period as compared to renters, the report found that renters lost more wealth overall, up to 25%.  The findings showed a difference in each household depending on if it was owned or rented.

Ethnic groups were also scrutinized during the study which showed similar losses of net worth across groups.  Hispanics were reported to have a 32% loss in net worth while African-Americans just slightly below at 31%.  White Americans were the lowest in net worth loss at just 15% drop as found in the study.

According to Grinstein-Weiss, “About a third of black households lost at least half of their 2007 net worth, and almost half lost at least 25 percent of their 2007 net worth.  The proportions with such losses were substantially higher among black homeowners than among those in the other groups.”

Apple announced three models of the new Apple Watch which brought some experts to wonder if the company had made a mistake in its announcement.  The basic Apple Watch, known as the Sport version, will be available to consumers for just $349.  But those looking for the 18-karat gold premium edition will be forced to pay another $16651 for the top of the line model.

The only reported difference between the top model and the entry level is the material the device is made out of.  The Apple Watch Sport model is made from aluminum while the premium model is 18 karat gold.  But the hidden item from the announcement is that Apple has now entered the luxury watch market with the release.

“Apple Watch is the most advanced timepiece ever created,” Tm Cook, Apple CEO stated in the Apple Watch announcement held in California. “It’s a revolutionary new way to connect with others and a comprehensive health and fitness companion.”

The new device has long been rumored for Apple and several features were announced during the press event this week in San Francisco.  The Apple Watch will have multiple types of bands and colors along with case material made from stainless steel.  Sensors included in the device are for heart rate and accelerometer.  The watch is compatible with the iPhone models 5, 5c, 5s, 6 and 6 Plus.  The face of the device is to be made of a very hard material known as sapphire crystal which Apple says is the second hardest material on earth with diamond being the first.

Availability is set for April 24 with pre-orders slated for April 10.

While most people are concerned for their online accounts for credit cards and bank accounts, new information reveals that hackers are now targeting rewards program cards held by consumers.  While not holding specific monetary value, the hackers are looking to these programs for two simple reasons - passwords and the rewards themselves.

Reports indicate that many people use the same password or passwords for their online bank accounts or credit cards as they do for the rewards programs.  Hackers accessing this information use it for access to credit card and bank accounts.  In addition, these hackers have been known to also steal rewards points transferring them to other accounts in order to gain bonuses or even cash out on these bonuses.

Several companies have sent alerts to members regarding these intrusions.  American Airlines as well as United Airlines both sent out notices to frequent flier members that an attack had been made on their systems holding mileage rewards and that some accounts had their miles transferred away to other accounts.  Hilton Hotels also notified customers to a data breach of its rewards program last year.

Reports indicate that consumers have been shocked at the news that rewards programs are the new target of thieves.  Experts strongly warn consumers to create different passwords for each program and that these passwords differ from anything related to accounts or credit card online access.  Keeping these separate will be more complex for users to remember but can help lower the risk for unauthorized access.

Some experts even suggest foregoing such programs as well as online access in any form.  Consumers are constantly being asked for personal information such as email address, phone numbers and address information at checkout lines or when signing up for programs at stores.  With the recent data breaches at several large corporations, experts wonder how secure this data is and what other methods hackers will use with the data breached.

A recent report by the American Pet Products Association showed how much Americans love their pets.  Spending on these animals topped $58 billion in 2014 which includes everything from goldfish to dogs and reptiles.  Americans care for a reported 397 million pets as found in the recent survey.

The American Pet Products Association gathered statistics from several areas and reported that Americans focus on five distinct areas when spending for their pets.  Food accounted for the most money spent at $22 billion.  Next was veterinary costs for keeping a pet which topped $15 billion.  Supplies for the pets was third on the list at $14 billion.  Almost $5 billion was spent on miscellaneous needs which includes grooming, pet sitting, training and other related expenses.   Rounding out the list was $2 billion spent for the animal.

An interesting topic raised in the report centered around the spending on veterinarian care.  While the $15 billion amount spend annually did not change much from previous years, the type of services provided did change.  More expensive treatments were done on pets than in previous years possibly showing many pet owners will forego the costs in order to do what is best for their beloved pet.

Not surprisingly, pet food has jumped in quality with some of it even being considered good enough for humans to eat.  Manufacturers are focusing on much higher quality of ingredients for pets including organic, sugar-free and low calorie food supplies.

The most shocking numbers from the report in 2014 was the increase Americans spent on pets overall.  In the first year of the survey started in 1994, spending was just $17 billion.  Twenty years later, the spending has tripled to over $58 billion with no sign of slowing down.

AbbVie (NYSE: ABBV) and Pharmacyclics (NASDAQ:PCYC) entered into an agreement where AbbVie would acquire the drug manufacturer in a $21 billion dollar deal.  News of the deal rocked the stock market Thursday sending investors into a frenzy.  Many analysts expressed concern with the high stock price paid - $261.25 - which put the value of Pharmacyclics at $21 billion.

Known for the prescription medicine Imbruvica, Pharmacyclics has been the top drug for treating hematological malignancies.  The prescription is known as a BTK (Bruton Tyrosine Kinase) inhibitor that was approved for use in select types of blood cancers including lymphocytic leukemia, mantle cell lymphoma and Waldenstrom’s macroglobulinemia.  Approved by the FDA in the United States, Imbruvica received three breakthrough therapy designations by the FDA.  The drug is also approved in more than 40 countries around the world for treatment.

“The acquisition of Pharmacyclics is a strategically compelling opportunity.  The addition of Pharmacyclics’ talented and innovative team will add enormous value to AbbVie,” said Richard A. Gonzalez, chairman and chief executive officer, AbbVie.

The deal will allow AbbVie to purchase all the outstanding common stock of the Pharmacyclics company for $261.25 per share.  AbbVie will use both cash reserves and their stock for the purchase. The company makes the acquisition just after they attempted a takeover of Shire Pharmaceuticals in 2014 which fell through after U.S. government scrutiny.

In Thursday trading, Pharmacyclics stock rose over ten percent to $254.76 after the announcement was made this morning.

“Team Pharmacyclics is honored and enthusiastic to join the AbbVie organization.  We share a common purpose.  Together and as one, our focus remains to create a remarkable difference for patient betterment around the world,” said Bob Duggan, chairman and chief executive officer of Pharmacyclics.

AbbVie is the Chicago-based manufacturer of Humira, an autoimmune blocker prescription drug.

Best Buy (BBY), the large electronics retailer, saw fourth quarter 2014 profits rise by a whopping 77% which beat Wall Street predictions that were predicted for the company. Earnings for the quarter amounted to $519 million which translates into earnings of $1.48 per share, far above the predicted $1.35 per share earnings.  These numbers were fueled by high sales in areas such as cell phones and large screened televisions.   Just one year ago, the retailer posted fourth quarter earnings of $293 million  or 85 cents per share.

Along with higher than expected profits, the company also announced plans to reduce spending by as much as $400 million dollars over a three year period.  Best Buy CEO Hubert Joly discussed the program known as ‘Phase Two’ in a call with investors and analysts on Tuesday.  Joly also noted that the cost cutting initiative would not result in loss of jobs for employees.  Joly also told analysts that the company will be increasing investments in capital expenditures.  Figures announced detailed a jump from the current budget amount of $550 million and the 2015 budget of $650 million.  “To win, investing now is imperative,” Joly told investors during the conference call.  The money will be used to improve retail Best Buy locations as well as  for marketing and online growth.

Key to the success of Best Buy after the PC market dried up was creating a store within a store approach.  Walking into many retail locations, the Best Buy store will have several areas dedicated to manufacturers such as Samsung and Microsoft which are dedicated to the products from these companies. Often, these areas are visually attractive and massive in size compared to other similar products being sold which has increased sales for these types of products. In addition, Best Buy has zeroed in on appliance sales adding more inventory and choices at retail stores as these purchases are most often done there rather than online.

Best Buy’s stock price has doubled under CEO Joly  who is credited with the massive turnaround.  At one point stock was at a low of $11 per share in 2012  but has gone upwards to a high of $39 share.