In brief: Pyramid scheme alleged in U.S., China

WASHINGTON – U.S. regulators have charged two companies and three individuals with operating a pyramid scheme that made about $129 million from preying on investors in China, Taiwan and the U.S.

The Securities and Exchange Commission announced the civil fraud charges Friday against eAdGear Holdings Limited, based in Hong Kong; California-based eAdGear Inc.; and Charles Wang, Qian Cathy Zhang and Francis Yuen. A federal court in San Francisco authorized the SEC’s request to freeze the defendants’ assets and bar them from soliciting investors.

The SEC says eAdGear claimed to be a successful online marketing company, but nearly all its revenue came from investors, not products or services. Starting in December 2010, the company sold “memberships” and “business packages,” opening accounts with tens of thousands of mostly Chinese investors.

The regulators allege the three individuals ran a pyramid scheme, using money from new investors to pay earlier investors – and to buy million-dollar homes for themselves.

Ford Motor Co. has issued a recall for 850,000 cars with airbags that might not deploy in the event of a crash.

The carmaker said some of its 2013 and 2014 Ford C-Max, Fusion and Escape cars, plus some of its Lincoln MKZ luxury cars, have an electrical short circuit that could, in the event of a crash, disable the forward restraint systems and side-impact airbags.

If the short has occurred, the company said, a warning light will be visible. But depending on the location of the short, there also could be warning lights for other features, like stability control.

The company said it is not aware of any accidents or injuries related to the safety recall issue, and that dealers will replace the affected parts at no cost to the vehicle owners.

Uber hits roadblock to service in Germany

BERLIN – The popular ridesharing service Uber is facing more legal issues in Germany after a Berlin court upheld the capital’s ban on the app.

Berlin authorities in August banned Uber, saying it put customers at risk by allowing them to ride in cars that hadn’t been checked, and with drivers neither vetted nor properly insured.

The Berlin regional court agreed Friday, saying the San-Francisco based company isn’t “a mere facilitator of travel services” and had an obligation to ensure passenger safety.

Already, a Frankfurt court this month issued an injunction banning Uber nationwide after a suit brought by a German taxi association was filed. The ban was lifted last week on appeal, but the suit still is pending.

Consumers’ confidence growing, measure says

WASHINGTON – A measure of U.S. consumer confidence reached its highest level since July 2013, led by greater optimism that the economy will grow and incomes will rise.

The University of Michigan said Friday that its index of consumer sentiment rose to 84.6 in September from 82.5 in August. That’s the second-highest level in the past seven years, although the index rarely has topped 85 since the recession. Before the downturn, it typically stood above 90.

Still, the sunnier outlook could spur consumers to spend more, which would accelerate economic growth.