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Eric: Grvnder,
<br />File • ctloh Editor 040-8261
<br />Stockton
<br />BUSIfNESS'l Record
<br />Sunday. November 1, iM B-4
<br />Fraud alleged in Circuit Works deal
<br />Suit blames firm's demise on breach of contract
<br />R) Rill Cook
<br />Ihr gtrYk — n—d
<br />Server irk+ frami, deceit and hreoch of
<br />cnnrrarr were key faelan in the eloaing of
<br />the 160-empin)ec Circuit Workg Inc.
<br />pian in •ouch Srocklnn. t federal court
<br />Inw •uit Raimo.
<br />T'he ri.'I suit Overt thar a I'm (;at"
<br />Cnmpn'rr.tn(iware company. Scnrpinr'
<br />h
<br />Trcnnlogkg. bntmht Cimtit Works on
<br />1"11 11 in a deal Int nevlttg a IMrd crampo-
<br />nt ha.cA in Iltmg Kong. Semrion then
<br />reneged on in nhlitatin"% including prn-
<br />tiding an Infudnn of Operating money.
<br />and Ll
<br />rcuit Work 4 folded, the tui, al.
<br />Pete%.
<br />Circuit «nrki fnundcr. Jnhn P. "Ja)"
<br />I!noun. and a patlneT. Richard S. 1.961-
<br />t'nn, both of nircotery Rny. are reeking
<br />ttmperined dtmngm from Scorpion In
<br />the duh. One imider etttmated at much a+
<br />$1 mlllinn may be at stake.
<br />?leanwhtle. Chciih t off employee,.
<br />who Mgt own nrek, or .*gr. when the
<br />plane suddenly Pocked it% danrs Sept. 4.
<br />are trying to pick fill their lites.
<br />"It made it dragric change In my lire.
<br />I'll fell lent," raid Roger filar. Ie, of
<br />Lolhrnp. And Phar. a Clrroh Ar,,kl
<br />maintenance wfyrker ror eight I* M was
<br />heckler then mail of 'he firm % I(r(r ran
<br />heckler
<br />Aner a short time mllectim; un-
<br />employment benefits, he lined up another
<br />Job at on i ptrimenl eemplen.
<br />.'But I rook a Mg pay ear." Hine told.
<br />"Atmn+t one-half."
<br />Hine and other workers could file a
<br />Inwtnit to {el the moray owed them plus
<br />aeeroed -+cation and damages. said
<br />Duarte Moony, a egmsoltont irroosht In
<br />last Demuth" in an attempt to retrive Cir-
<br />enit works.
<br />"Rai In my persona) opinion. the work-
<br />ers arc dead" as far so getting cry money
<br />from the company, sok! Movnty.
<br />Clieult Worn riesurt reportedly left
<br />ereditcrs hold,ttg met then 3 mil M
<br />Unpaid bilk, and the Arm's eireels-hoard
<br />r:MM LOT: The parkhq tot et the 000 WOrtue plant remain h+sfdg. The dlehtot attorney ro" Sea fto tleUen
<br />on Frerslt West Clyde slIS empty, Clue hmzw*xm flltertNCeIS to hove them rarncrAd. - .
<br />DA may sue to force toxic cleanup
<br />at boarded -up manufacturing plant
<br />R BiII Conk
<br />f 1w : tnektoa Rermd
<br />Thr Can Joaquin Conroy district at -
<br />turner g Office is convideripg legal or-
<br />tinn toforte remmal nF hnsanlitua
<br />chemiealt from the closed Circuit
<br />Works.. - dfaclaringphow.
<br />"The molter Is ender Invatigatinn;'
<br />,old Deputy District Attorney Llsa
<br />Brown. "but no Charges have been
<br />filed."
<br />Rrnwn said the slttrolhtn was referred
<br />to the dhtm attorrsey't emimnrnenral
<br />prnreerinn mail by the county Health
<br />prpanmem end the oily of Stncklen.
<br />She drrlined to disco" further details.
<br />Some .ride and other ehemicals filed
<br />in the monaracture of printed Circuit
<br />!,nerds lett ctagdited It harardmits waste
<br />if they are leg osndlret far extended
<br />(the Circuli Warks plops xill become it
<br />ifederti) Sutperfund cleanup cite." talo
<br />Dunne %looney. who was chief npern
<br />Ins oBhet of the plant Incited Ju„
<br />north of French Camp.
<br />Moony) dorwnpinytel the real darusers
<br />of the eillanlc'n, however.
<br />"Thm ore plini,? dtemi,Irie, and
<br />drummed -up chemicals: corrosives,
<br />midi& They're considered hazardous
<br />water because they've been aimed In the
<br />ppinni fete more than 90 days. Are 'hey
<br />harinhros ro he people or S'acktony
<br />No. Are they harsrdant to she tnviras-
<br />went' No.”
<br />They are a nuisance, though. and
<br />they eon%! lee a very expensive nuisunee.
<br />Money tali.
<br />Betau+e the plain shut dowfi sudden-
<br />ly, in MANY. the chemicsls aged in tic
<br />•time etched circuit hnnrdt are still
<br />opus and pletlnS 111AWL Mooney aha.
<br />The Alan Baker Co. of South San
<br />Friatheo teased most of the equipment'
<br />toCiteuh Works. Bol Baker'sefforts to
<br />recover the :gvipment are bdri F11"'?
<br />tomplkated by that =00r"101111111 -
<br />The
<br />is ttre
<br />Walk wilh chemk'al,, itfoor" mid.
<br />The the -kill will hart to be tentoa-
<br />ed from the egniprneM, placed in ap-
<br />propriate containers, and disposed of
<br />aeeordittg to strict reseletions, alons
<br />with the chemicals still enersed In their
<br />W ill . l t:annhtem
<br />I think a private co toeId
<br />probably do the Joh for SIOB.000."
<br />lslaortry said.
<br />Because there may be disputes over
<br />the plant's ownership, and thus oho It
<br />responsible for and capable of finaltdng
<br />the ciesoup, Moroney ttelieves the Feder-
<br />al government may end tip psylllg for
<br />removal of the chemicals.
<br />. . -. IA -0 tt 1 _;n1I w
<br />evaomm wen cat ort without Mike.
<br />The customer oven found new sup-
<br />pliers, which insiders sty tinually elimi-
<br />nared any Chance that Circuit Works
<br />m ll e�halter." told bloomy. who
<br />was chief opertring officer of Cireuir
<br />Works when It shut dowel. "i'te seen
<br />Milhins tfils cvaeeiurM In my 30 )cors in
<br />rhe ikl4 This wits a total Joke"
<br />Mooney gold be espeets the Tiamcn-
<br />Sebattiae tell %ill be the first of a flurry
<br />atteg d eetforts.
<br />Tho sail chtrse+ that Scorpion, among
<br />athn Ihhgss, deceived the former Circuit
<br />Works natters. failed to provide promised
<br />nngneial help, failed to negotiate with
<br />ertditon, neglected Circuit Woks Ctrs-
<br />sonnets
<br />assonnets aw early abandoned ICYeah
<br />r
<br />The ,alt. Bled in U.S. bletrici Court In
<br />San 1oa, does not hnolte a third original
<br />(hecto Works partier. Stege A. hlartlno.
<br />who ciao thea in the Saenmrnlo-San
<br />loagsla Delta Cres.
<br />Waned M defeadil L In addhinn to
<br />SwaeCrIts president
<br />tad eh4f ty"ivir offkw. Terry htartht
<br />Bushless Promatbrrs Inter mtionni Lid..
<br />Phi Hong Kers Ilam, John T. Drtan of
<br />Stn lose. artarne for beth Scorpion and
<br />Bashsess promotions International: and
<br />Michael Horne, maarsins director of
<br />I!>tts oro Promotions Infl,mil IOMI,
<br />Marsh and Da+son have not -turned
<br />telephana alb by The Record.
<br />Tiro dirmisr of Clreoh Warkg wad rels-
<br />thtly gakk. The twrvait told the firm.
<br />wilkich no,- from the Snkern valley into
<br />the Crepe stainers Park trent French
<br />Cimh to years am had III errwkaI sn llud
<br />asks of $20 miltion. It hod h mt ■ little
<br />II'nhtete In trxet't years trot was tom rn-
<br />bast M47 late year.
<br />At thal time. Its emoloyets were work -
<br />Me Cheat SMRs a day. turning can mon
<br />them $I millbn womb of sopblirl"ted
<br />two. and three -le er printed circuit
<br />boan d. truth month for the msnufacteert
<br />ar eompoh" and other electronic egalp-
<br />mem.
<br />Who bappenad3
<br />the answers -- plead tosethrr from
<br />cog" rscat a end oeber docemettty plus
<br />Nottrskrra wills Mooney god other Insid•
<br />els -- astalls not only the alleged fouled -
<br />will silt to sea '10 but also itlerei ted
<br />camprtitkm and the sfpseeld I of Chctdl
<br />w kink credh Bora Ind cash flow.
<br />.m,id.Hgld,CYteh. Wok/' bigsM
<br />el1llplrlr, Cdtrtpug Camdllter. cancer
<br />No courtrgte, Mooney said the Inas of
<br />C'otrtpull dropped Circeil Works mootlm-
<br />ly past safes from about $1.2 million Is
<br />moelh to glowed 3800.080 a month.
<br />. The loss was reported to Clreull
<br />Works' rrstor bank. Comerks Bank, in
<br />San Jori. In reapongo. Mooney Laid, the
<br />bank edtred Cirtult Works' 11nt of «ed -
<br />It by 5600.11100. dropping it to 31.1 mil-
<br />lion, and pat Ihrsher rettrlcttotn on bor-
<br />roThh vedlt squeeze greatly hampered
<br />Hansen's ortemplf to minael new enstom-
<br />ert ton, a Compon. Plooney vild.
<br />Circuit Weeks tetphryees alfa kh the
<br />two"". Star Moa at. acramemo. who
<br />will the compin o npentlom director for
<br />hazardous waste, old 'hot in mid-1991.
<br />woken were eked to take pry cut, of 1
<br />Pelee ns to 20 percent. Wave shifts were
<br />kyr to Iwo a day. Mara sold.
<br />Bence Word. who hove mated to a
<br />roman town asc r Mount Luxn. nal Or -
<br />evil Worcs' director of anIioeged.f from
<br />Septern6et 1990 until It cl . . 1It oak!
<br />Compug's ptdkmt wet simply another
<br />symptom of lipid choosy in the indrrs
<br />U7ttryry chimps to which many U.S. Coni
<br />1 Maters did not adegaorely ad".
<br />`In the Isle'" and the'70%. II -am flit
<br />city few primed circuit -board manufaelar-
<br />ers," llellard recalls. "Profit margins
<br />OM 40.30 perttrr.
<br />"Then competition bean to detrMp in
<br />the U.S. end Kota. in Sin)tepnre. Tal -
<br />warm, the Pacific Rim. Overhead costs be -
<br />son to escalate, solvirs rasen
<br />. end the
<br />were mors regulatimos. Rol management
<br />III aeti" dHln't adapt in the new tircem-
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