Salem Observer : Salem, court

Company to pay $3.4 million to settle lawsuit over stocks

Salem Editor — Wed, 09 Jan 2008 19:36:00 GMT

StockerYale Inc., a manufacturing company based in Salem, has agreed to pay $3.4 million to settle a class-action lawsuit that accused it of misleading investors by issuing two fraudulent press releases in 2004.

According to documents at U.S. District Court for the District of New Hampshire in Concord, the plaintiff’s lawyers were awarded 33 percent, about $1.13 million, in fees and $51,111 in reimbursement of expenses.

The remainder will go to 10,900 class members, investors who bought StockerYale stock between April 19, 2004, and May 24, 2005.

StockerYale is a designer and manufacturer of light-emitting diodes (LEDs), fiber optic, structured light lasers, fluorescent illuminated technologies and other products, according to the lawsuit.

The suit named the company, chief executive officer Mark W. Blodgett and his father, Lawrence W. Blodgett, a company director, as defendants.

On April 19, 2004, the company announced through a press release that it had received an order from BAE Systems to supply lasers for an airborne military missile defense system.

Following the announcement, the company’s share price surged. Mark Blodgett sold more than $1.6 million worth of shares and Lawrence Blodgett sold more than $350,000 worth of shares, according to the lawsuit.

Another press release issued on April 21, 2004, providing additional information about the order, also caused share price to rise, the lawsuit said.

The share price later decreased significantly, according to a published report.

The Securities and Exchange Commission investigated the company and settled a fraud case against it and Mark Blodgett in 2005.

“Specifically the complaint stated that StockerYale did not have any contract with BAE Systems for the development of a laser for missile countermeasure systems for commercial airplanes as part of the Homeland Security project,” the lawsuit said. “Nor was StockerYale developing such a system.”

Mark Blodgett agreed to pay disgorgement of $788,118 and a $120,000 civil penalty. He and the company did not admit to wrongdoing, have defended the press releases as accurate and have denied the plaintiffs’ charges in the class-action suit, according to a published report.

Tragic connection – Men involved in fatal crash may be alleged bird thieves

Salem Editor — Wed, 26 Sep 2007 21:39:00 GMT

BY DARRELL HALEN

An exotic baby bird stolen from a Salem pet store has been found, and one of two men accused of stealing it – a driver involved in a fatal crash the same day – has been arrested.

Joseph Connolly, 34, of Andover, Mass., was arraigned on Tuesday, Sept. 25, in Derry District Court, where bail was set at $5,000. He is charged with being an accomplice to shoplifting.

Salem Deputy Police Chief Bill Ganley said Connolly drove away after his passenger, Joseph Murabito, 35, of Lawrence, Mass., allegedly stole the bird from the Seaworld Pet Center in Salem on Tuesday, Sept. 18. An arrest warrant has been issued for Murabito for felony shoplifting.

A few days before Connolly’s arrest, police said they were investigating whether the theft of the 7-week-old baby macaw, valued at $1,900, is connected to the fatal crash.

Police said Connolly was traveling south on Route 38 when his vehicle crossed into the northbound lane, colliding with John Sweren, 54, the motorcyclist.

The motorcycle then collided with a vehicle being driven by Taryn Riley, 47, of Lowell, Mass., who was waiting to pull out of a car dealership parking lot.

Sweren was suffering from serious injuries when rescue workers reached him. He was transported to Lowell General Hospital and then airlifted to Boston Medical Center, where he died.

Connolly was treated at Southern New Hampshire Medical Center in Nashua and released. Riley was not injured.

Pelham Police Lt. Gary Fisher said Joseph Murabito fled from Connolly’s car, ran into the woods and was caught. He was treated for minor injuries.

Ganley said several factors led investigators to suspect there is a connection between the fatal crash and the bird theft.
The incidents happened about a half hour apart and the color and make of Connolly’s car – a silver Ford Taurus – is the same as the vehicle the bird thieves used when they fled from the pet store.

Ganley said police received a tip that Connolly offered to sell a bird prior to the accident, and that an individual witnessed someone fleeing from a car after the crash.

Joanne Leone, the store’s manager, along with other employees and her dogs, found the bird in the woods off Route 38 on Friday, Sept. 21, three days after it was stolen.

The bird was in a tree and a soiled cardboard box that it was kept in was about 2 feet away.

Leone and others had previously made about five unsuccessful searches. After the bird was found, Leone came out of the woods sobbing.

A Pelham police officer, Lt. Brian McCarthy, escorted her and the bird to the pet store.

The bird was dehydrated and had a sore wing probably due to being stuffed in a box, Leone said.

“He’s going to make it,” she said the day after it was found. “I think that’s the thing everyone wanted to know – will this bird survive.”

She looked at the bird while it stood in a shopping carriage, and a Salem customer, Mike Mulloy, hugged Leone, offering his congratulations.

“I’m so happy,” she told him. “I’m telling you, it was truly, truly a miracle.”

A woman who wants to remain anonymous and whom Leone described as a devoted bird owner recently purchased the bird.
“She thought this baby should be coddled for the rest of its life after everything it went through,” Leone said. “We wanted the best for this bird.”

Leone said veterinarians have called the store, telling her that it’s amazing the bird survived.

Since its return to the store, people have brought in cupcakes and pizza. The bird is drawing the attention of customers who have followed its ordeal on the news.

“This was a story everyone was following,” Leone said. “It makes you have a little faith in human beings again. Last Tuesday, it was gone.”

Connelly was arrested on the accomplice to shoplifting charge when he was discovered trying to sell power tools in a store parking lot in Salem on Monday, Sept. 24. An arrest warrant had been issued for his arrest.

Connolly has not been charged in connection with the fatal crash. Fisher said he wants to obtain a warrant to have a vehicular autopsy done on his car.

Mail theft – Mailman charged with stealing money from cards

Salem Editor — Wed, 19 Sep 2007 22:11:00 GMT

BY DARRELL HALEN

Moyer was doing more than delivering mail in Salem on his postal route. He was allegedly swiping money from greeting cards.

Moyer, of 35 Appleton Lane, Hampstead, faces theft charges in U.S. District Court in Concord.

Sean Conway, postmaster of the Salem Post Office at 51 South Broadway, told postal service investigators around May 1 that he had received complaints from customers and letter carriers that Moyer filled in for on routes.

They complained of money missing from greeting cards and the back of cards being taped due to being tampered and opened.

From Aug. 3 to 4, Special Agent Suzanne Leone of the U.S. Postal Services’ Office of Inspector General observed Moyer opening seven greeting cards and examining their contents, according to an affidavit she wrote.

Leone observed Moyer taking money out of one card, sealing the envelope with tape and putting the money in his wallet.

On Sept. 10, Leone arranged to send two test pieces of mail to addresses on Moyer’s route. She put a $10 bill in one of the cards and recorded the serial number.

Later in the day, agents working with Leone observed Moyer, while on his route, pull into a parking lot and park by a dumpster in a secluded area for about 10 minutes, according to her affidavit.

After leaving, Moyer was arrested. An agent found the $10 bill in one of Moyer’s pockets and other agents discovered seven pieces of mail, collected by Moyer on his route, that had been opened and taped shut, according to Leone’s affidavit.

Moyer has been a full-time mailman in Salem since November 1995.

He is currently on unpaid leave, pending the outcome of a postal service investigation, according to spokesman Agapi Doulaveris of the Inspector General’s office.

If convicted, Moyer faces fines and up to five years in prison.

“Right now, we’re in the process of totaling up what he could have stolen,” she said.

Moyer is being represented by Bjorn R. Lange, a public defender. Lange declined to comment because he has not sought permission from his client to speak for him and he has not seen all the evidence that prosecutors have.

The case is being prosecuted by Mark S. Zuckerman of the U.S. Attorney’s Office in Concord.