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Times Sq. Businesses All Shook Up 20100510-NEWS--0001-NAT-CCI-CN_-- 5/7/2010 8:25 PM Page 1 INSIDE REPORT TOP STORIES SMALL BUSINESS TBS to trot out Why your health care Conan for annual bill just soared 40% dog and pony show ® PAGE 13 PAGE 2 Foul play: protests over selling foie gras VOL. XXVI, NO. 19 WWW.CRAINSNEWYORK.COM MAY 10-16, 2010 PRICE: $3.00 PAGE 2 Trinity seeks Times Sq. businesses all shook up successor for the Bomb scares, evacuations keeping owners man who on edge—and spending more on security revived vendor who opened fire on police three city districts BY LISA FICKENSCHER officers with an automatic weapon was killed in the middle of a crowd PAGE 3 the attempted car bombing inci- of holiday shoppers. And just this dent on West 45th Street is just the past Friday, an abandoned cooler NY Stock Exchange latest crisis that businesses located in and a shopping bag prompted the has a Europroblem Times Square have had to contend evacuation of several streets and with over the past several months. bomb investigations. IN THE MARKETS, PAGE 4 In April, an Easter melee in- The rising tensions have area volved gangs of violent teenagers business owners on edge. Gentrifi- In Albany, at least who shot four people—33 were ar- cation has pushed out the prosti- landov 91 ways to punish rested. In early December, a street See TIMES SQUARE on Page 25 BLOCKADED: The NYPD shut down Times Square after defusing a smoking car bomb. big bad Wall Street OPINION, PAGE 11 Feds wring BUSINESS LIVES Spongetech chief exec NYCTea-Off Alleged ‘mini-Madoff’ Exasperated and ebullient, local Tea Partiers charged with fraud: fake orders, buyers organize to fight Big Apple’s liberal machine my country too much.” GOTHAM GIGS BY AARON ELSTEIN BY JEREMY SMERD Instead of heading south to drink piña co- His tanks give the city’s ladas in Puerto Plata, he joined Tea Party 365 skyline character P. 27 last week, the law caught up with wave chan, the son of Chinese immigrants, Inc. in Manhattan. Now he’s organizing rallies G ANNE FISHER sings the Michael Metter, a purveyor of kitchen didn’t recognize his country. The bank bailout and recruiting other volunteers from his two- praises of barter P. 27 sponges and stinky stocks with a long incensed him; health care reform sent him over bedroom apartment on the Lower East Side. history of evading angry creditors and the edge. “President Obama says if you want to repeal G MOVERS & SHAKERS clients. “I was going to renounce my American citi- this [health care] bill, bring it on,” Mr. Chan, a Jim Ryan will tune up In a criminal complaint, federal zenship and move down to the Dominican Re- real estate salesman, says.“Well, we the Tea Par- P. 28 Fresh 102.7 FM prosecutors charged the CEO of public,”says Mr.Chan,42.“But screw that;I love See NEW YORK CITY on Page 25 G GAEL GREENE dashes to Spongetech Delivery Systems Inc., a chef Huynh’s latest tiny Manhattan company that was NOT YOUR GREAT-GREAT-GREAT-GRANDFATHER’S eatery,DOB 111 P. 31 once a big advertiser at such places as TEA PARTY: The Manhattan and Staten Island groups Citi Field, Yankee Stadium and Madi- reflect the city’s diversity. son Square Garden, with conspiracy to commit fraud and obstruction of jus- INDEX tice.The feds allege no fewer than 99% of Spongetech’s purported sales were THE INSIDER _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _8 fake and Mr. Metter pocketed millions NEIGHBORHOOD JOURNAL _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _9 in illegal gains by pumping his compa- VIEWPOINT _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _10 ny’s stock price.He then sold billions of REAL ESTATE DEALS PLUS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _12 near-worthless shares to gullible in- vestors. If convicted, the 58-year-old CLASSIFIEDS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _22 faces up to five years in prison. FOR THE RECORD _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _24 Mr. Metter is intimately familiar EXECUTIVE MOVES _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _27 with courthouses.He has been sued re- THE WEEK ON THE WEB _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _30 peatedly over the years, instigated liti- THE WEEK AHEAD _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _31 gation of his own and declared person- See FEDS WRING on Page 26 19 5 ELECTRONIC EDITION buck ennis 71486 01068 0 20100510-NEWS--0002-NAT-CCI-CN_-- 5/7/2010 8:24 PM Page 1 IN BRIEF Chasing the grail: ad rate NEW YORK STATE’S PUBLIC PENSION FUND WON A $624 MILLION CLASS-ACTION SETTLEMENT with Countrywide Financial Corp., pending approval by a California federal judge.The parity with broadcast TV state’s $129 billion Common Retirement Fund and five city pension funds led a class-action lawsuit that accused the mortgage lender of Cable guys argue their to $8.7 billion, and 22% for cable, to $8.2 misstatements and omissions about its home- billion, according to a recent report by loans business. According to the settlement, shows are just as good as Credit Suisse. Countrywide—now owned by Bank of America—will pay $600 million, and the networks’—and deserve Broadcast ad rates are double lender’s auditor, KPMG, agreed to pay $24 some love at upfront broadcasters have lots to brag about million, the city’s Law Department reported. too, with breakout hits like Glee Countrywide denied any wrongdoing. on Fox, and NCIS: Los Angeles BY MATTHEW FLAMM on CBS.But the main reason AWARD-WINNING RESTAURATEUR MARCUS that broadcast will have a SAMUELSSON IS OPENING HIS NEXT EATERY IN the conan o’brien national live comedy bigger payday is because it Harlem. He recently signed a 15-year deal at tour has added a stop. The red-haired for- sells more inventory in 310 Lenox Ave., between West 125th and West mer Tonight Show host,who moves to TBS the upfront market 126th streets.The former executive chef at in the fall, will appear next week at Turner than cable does— Scandinavian restaurant Aquavit and Top Chef Entertainment’s upfront presentation— and because the ad Masters is planning a café and bar on the the dog and pony show where networks rates for its prime- ground level, and jazz and fine dining pitch advertisers on their new lineups time shows are tra- downstairs. “It’ll be American fare, but it will and set the mood for negotiations. ditionally double draw upon his diversity of experiences and Turner is hoping he kills. that of cable’s. training,” said Derek Fleming, a director for Even those broadcast and cable NEW FACES OF CABLE: Cable executives Mr. Samuelsson. executives who don’t have a hot Oprah Winfrey, Conan say the gap has closed for comic at their upfront shows O’Brien and Burn Notice sports programming, and A SMALL DOCUMENTARY THAT JUST OPENED IN are looking forward to a better is down to between 10% THEATERS HAS AN UNUSUALLY LARGE than usual sales period.Adver- and 30% for original marketing campaign behind it. Babies—a tisers are expected to increase And in addition to shows like Burn Notice documentary directed by French filmmaker spending on next season’s Mr. O’Brien, TBS and The Closer. Observers Thomas Balmes that follows the first year of schedules by can boast a partner- say it won’t be long before life for infants in Mongolia, Namibia, San more than 20% ship with CBS to that gap closes too. Francisco and Tokyo—is opening in 534 over last year. carry the National “TNT, USA, Bravo, theaters across the country, a big release for a Some of the top Collegiate Athletic As- FX, History—these net- specialty film, especially a documentary. Similar cable networks are also sociation men’s basket- works are increasingly films typically start their run at one or two hoping to take advantage of the ball tournament next competitive with broad- theaters in New York and Los Angeles. upswing and finally convince year. cast,and in some instances advertisers that their big new “We are getting to are delivering more demo- shows are just as good as the the point now where media graphically appealing audi- BY THE NUMBERS broadcast networks’—and de- buyers will end up buying ences,” says media economist serve to be priced the same.
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