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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883
John Stucke

John Stucke

Current Position: Asst. Managing Editor (Front Page)

John Stucke joined The Spokesman-Review in 2000. As Metro Editor, he directs local news coverage and oversees newsroom reporters. He has reported on business, health care, bankruptcy and agriculture for the paper.

All Stories

News >  Business

Motocross fans rally in the fields

FAIRFIELD – Farmer Al Anderberg peeled off his helmet, sweat trickling from his graying hair into the collar of his colorful shirt. A grin stretched across his face. Harvest may be bringing good times to Eastern Washington farmers this fall, but there's nothing Anderberg would rather do than speed old motocross bikes across 20 acres of bluegrass.
News >  Business

Adelphia deal may hearten Met creditors

A settlement requiring auditing firm Deloitte & Touche to pay $167.5 million to a special trust recovering money for Adelphia Communications Corp. creditors provides some buoyancy to the difficult task of recovering money from two large firms that audited Spokane's bankrupted Metropolitan Mortgage & Securities Company Inc. A trust established to collect all possible sources of cash for thousands of Metropolitan investors is now engaged in arbitration with Ernst & Young, and has sued PriceWaterhouseCoopers in U.S. District Court in Spokane.
News >  Business

The price of success

Farmers across Eastern Washington are keeping one eye on the paths of their combines as the huge machines cut valuable grain, and the other on federal legislation wending its way through Congress that they expect will sustain them if prices collapse. Every five years Congress passes a Farm Bill, the most important federal law for agriculture. It's expected to be a $40 billion heavyweight offering money for nutrition programs, including food stamps; conservation initiatives for farmers to return farm fields to wildlife habitat; and crop subsidies that guarantee farmers a paycheck for growing staples like corn, wheat, soybeans, rice and cotton.
News >  Spokane

A year of plenty

RITZVILLE – The first thing Ron Jirava does on this warm morning is slip a key into the ignition of his 3,000-gallon water truck and coax its old diesel engine to start. After a few minutes of idling, he kills the engine, hops back into his work truck, and drives a half-mile to prep a pair of combines.
News >  Business

Nelson leaves Empire Health

Turnaround executive Jeff Nelson has left Empire Health Services after bringing the Spokane hospital operator back to profitability and arranging the pending sale of Deaconess Medical Center and Valley Hospital and Medical Center. "It was pretty obvious his tenure with Empire was not going to be long-term. His duties were diminishing," said Ronald F. McKay, board chairman of Empire. "It's in both our interests that Jeff make the move that he's making."
News >  Business

Avista still relies on coal power

Concerned about global warming? Then turn off some lights and ease up on the air-conditioning this summer, because burning coal is lighting and cooling much of Spokane and North Idaho during the late summer months.
News >  Spokane

Diocese legal bill surpasses $10 million

Bankruptcy lawyers and accounting professionals have billed the Roman Catholic Diocese of Spokane $10.1 million for 2 1/2 years of work. The fees reflect what diocese leaders and lawyers have said for many months – that while the case is among the most expensive legal endeavors in Spokane history, it is serving the purpose of settling all claims of sexual abuse by clergy and other diocese employees while allowing the church to continue its Eastern Washington ministry.
News >  Business

Avista waterflow plan moves ahead

Avista Utilities' proposal to wash more water over the downtown Spokane River falls during the dry summer months is sufficient to quench the city's aesthetic desires, according to a new federal report released this week. Unlike years past, Avista proposed a minimum flow for the downtown wonder that goes from roaring waterfalls in spring to sad trickle in late summer as the utility diverts the river through electricity generating turbines.
News >  Business

Feds investigate 21 farmers

The U.S. Attorney's Office is investigating a group of Eastern Washington farmers suspected of gaming a federal program that pays for good conservation practices. The 21 grain farmers possibly defrauding the Natural Resources Conservation Service have had to pay the federal agency $564,197 in reimbursements and costs. Of the 21, seven farmers mediated settlements with the NRCS and others lost appeals.
News >  Business

Providence chief to get new role

Ryland "Skip" Davis will leave his post as the top executive of Providence Health Care, the regional organization made up of Sacred Heart Medical Center, Holy Family Hospital and other area Providence operations, to lead a new division created by the system's parent company. A national search has begun to find Davis' successor to lead Eastern Washington's largest hospital and the biggest private employer in Spokane at a time when its rival, Empire Health Services, has signed a letter of intent to sell to the nation's largest for-profit hospital chain.
News >  Business

Empire looks ahead

Community Health Systems Inc. has the money in place to buy Deaconess Medical Center and Valley Hospital and Medical Center. With a collection of big-name banks lined up to offer the company credit, putting together a nine-figure deal has more to do gaining the approval of regulators and medical community, and less to do with finding the cash, said Ron McKay, chairman of Empire Health Services, which operates the two hospitals.
News >  Business

Workers may not lose jobs

Empire Health Services intends to bring its housekeeping, laundry, food services and clinical engineering departments back under hospital management after the company it outsourced the jobs to four years ago announced Friday it was terminating its contract. The move affects about 245 employees, according to the Washington State Employment Security Department. It also comes at a time when Empire has entered into a letter of intent to sell its two hospitals to Tennessee-based Community Health Systems Inc.
News >  Business

Broker faces Montana charges

Montana officials have accused Spokane stockbroker Richard H. Westerman of making about 155 unauthorized trades in a four-year span to earn $16,331 in commissions from a Missoula, Mont., client. The busy buying and selling within the Missoula investor's Individual Retirement Account — which had an average value of about $37,907 — raised warning flags at Westerman's employer, Raymond James Financial Services.
News >  Business

Sterling says U.S. owes it millions

Sterling Financial Corp. says the United States owes it $63 million for breaching contracts dating back to the savings and loan debacle of the 1980s. The U.S. Justice Department says the government owes Spokane-based Sterling perhaps $900,000.
News >  Spokane

Hospital deal near

The pending sale of two Spokane hospitals to a Wall Street powerhouse would plow millions of dollars into aging Deaconess Medical Center and remake it into a tough competitor, say supporters of a deal with Community Health Systems Inc.
News >  Business

Avista agrees to class action settlement

Avista Corp. has agreed to a $9.5 million settlement to end a class action lawsuit filed by investors five years ago who alleged the company and senior executives engaged in fraud and other securities law violations. The pending settlement, announced this week, needs the approval of U.S. District Judge Fred Van Sickle of Spokane.
News >  Spokane

Turner convicted in Met case

SEATTLE – A federal jury convicted former Metropolitan Mortgage & Securities Co. executive Thomas Turner of three felonies Friday morning. It took the jury several hours to reach its guilty verdict in a complicated case that boiled down to whether they believed Turner was an honest dealmaker for Metropolitan. They didn't and convicted him of lying to and hiding information from Metropolitan's outside auditors, Ernst & Young LLP.
News >  Business

Trial of ex-Met exec goes to jury

SEATTLE – Former Metropolitan Mortgage executive Thomas Turner is either a scapegoat for shoddy and negligent auditing work, or a sophisticated white-collar criminal.
News >  Spokane

Turner says he obeyed his boss

SEATTLE – Former Metropolitan Mortgage & Securities Co. executive Thomas Turner testified in his criminal trial Wednesday that he was only doing the bidding of his boss, C. Paul Sandifur Jr., when he signed off on a controversial real estate deal that helped bring the company down. Turner, 56, said Sandifur and another Metropolitan executive, former Controller Robert Ness, as well as the outside accounting team of Ernst & Young LLP, knew the details of the troubled 2002 real estate deal that exploded into an accounting scandal in the weeks leading up to Metropolitan's bankruptcy. Yet only Turner has been charged with crimes.
News >  Spokane

Diocese officially on new footing

Bishop William Skylstad and other church officials signed documents for 11 hours Thursday and wired $20 million to a special trust – actions that allowed the Spokane Catholic Diocese to emerge from Chapter 11 bankruptcy protection. The diocese now has essentially a clean slate, enabling it to continue its ministry in Eastern Washington, diocese attorney Shaun Cross said Friday.
News >  Spokane

Former auditor grilled by ex-Met executive’s lawyer

SEATTLE – Metropolitan Mortgage & Securities Co.'s former auditor Jack Behrens once told the U.S. Securities and Exchange Commission that he thought just about everyone in the defunct Spokane company was untrustworthy. Lawyers defending former Metropolitan Mortgage executive Thomas G. Turner seized upon Behrens' statements from 2004 to tell a jury that he was trying to deflect all blame for a major accounting scandal from his firm, Ernst & Young LLP.
News >  Spokane

Auditor testifies Metropolitan needed ‘extra attention’

SEATTLE – Ernst & Young LLP charged Metropolitan Mortgage & Securities Co. a hefty $1 million each year for auditing services, betting its reputation that it could handle a firm that was losing money and known for risky business dealings. The accounting firm also charged the Spokane financial conglomerate for tax advice and business consulting services.
News >  Spokane

Met Mortgage auditor says exec misrepresented sale

SEATTLE – Metropolitan Mortgage & Securities Co.'s financial auditors counseled executives of the Spokane company again and again about special accounting rules designed to prevent financial fraud, one auditor testified Wednesday at the criminal trial of Met's No. 2 executive. Yet one of the executives allegedly brushed aside the advice, orchestrated a questionable property sale, lied about it and got caught, according to federal prosecutors and the Ernst & Young auditor, a key witness in the trial.
News >  Spokane

Testimony begins in Met exec fraud trial

SEATTLE – Federal prosecutors called a former executive of Metropolitan Mortgage & Securities Co. a liar who schemed to mask losses at the Spokane financial conglomerate by deceiving auditors. The executive's attorneys, however, tried to direct at least some of the blame for the company's failure toward those auditors.
News >  Spokane

Met trial set to begin

The criminal trial of a leading executive of defunct Spokane financial conglomerate Metropolitan Mortgage & Securities Co. begins Tuesday in Seattle, three years after the company filed for bankruptcy amid an accounting scandal. Thomas Turner worked as president of Summit Securities Inc., a sister company of Metropolitan, controlled by common owner C. Paul Sandifur Jr.