Compiled by Julie Leupold
TOP STORIES
Stephen Scarborough, chief executive of Standard Pacific Corp., stepped down from the Irvine-based homebuilder. He was replaced by Jeffrey Peterson, a director since 2001 and lead independent director since 2004. The company said Scarbor-ough is retiring after 27 years with Orange County’s largest homebuilder. The change comes as Standard Pacific has been working to cut its debt and sell land and housing projects amid the downturn. The company had a market value of about $340 million last week, down from more than $2 billion in mid-2005.
H & R; Block Inc. said it has a deal to sell what’s left of Irvine-based subprime mortgage company Option One Mortgage Corp. for $1.1 billion. The Kansas City-based tax preparer said it will sell Option One’s mortgage servicing business to distressed-asset investor Wilbur Ross. The deal could close by May 30. Most of the proceeds of the sale, or nearly $700 million, are expected to go to pay off Option One’s debt.
Roland Arnall, founder of former subprime lender Ameriquest Mortgage of Orange, died at the age of 68 of cancer. Arnall was one of the pioneers of the subprime mortgage industry. Ameriquest and related companies under his Orange-based ACC Capital Holdings Corp. once were the top lenders to borrowers with imperfect credit.
TECHNOLOGY
Jeff Benck, a former IBM Corp. executive recruited to eventually take over running Aliso Viejo-based QLogic Corp., resigned (see story page 3). Chief Executive H.K. Desai is set to take over Benck’s duties.
Former Broadcom Corp. executive Yossi Cohen, who stepped down from heading the mobile group at the chipmaker, has taken the top spot at a San Diego chip startup. Cohen is chief executive of Symwave Inc., a maker of chips for PCs and consumer electronics. He’s set to lead Symwave in developing its first products, gaining customers and growing sales. Chief Executive Scott McGregor temporarily has taken on Cohen’s job until a replacement is found.
HEALTHCARE
The University of California, Irvine Medical Center in Orange named Maureen Zehntner as chief executive. She had been serving as the teaching hospital’s interim boss since early 2006, after the resignation of Ralph Cygan. He stepped down in the wake of a scandal involving UCI Medical Center’s liver transplant program.
Cameron Health Inc., a San Clemente medical device maker, raised $14.1 million of a planned $50 million fifth round of funding, according to venture capital sources. Cameron is developing an implantable defibrillator that administers shocks to the hearts of people who are at risk of a heart attack.
Valeant Pharmaceuticals International said its drug to treat hepatitis C liver disease had “encouraging” results in a second-phase clinical trial. Aliso Viejo-based Valeant’s taribavirin, also known as viramidine, saw mixed results in earlier trials.
A federal court said medical device maker Cook Inc. didn’t infringe on patents held by Irvine-based Edwards Lifesciences Corp. Cook, based in Bloomington, Ind., was granted a summary judgment in its favor. Edwards had alleged patent infringement on four of Cook’s Zenith endovascular stent-grafts. An Edwards spokeswoman said the company could appeal.
APPAREL
Pacific Sunwear of California is laying off 158 workers in Anaheim as part of its plan to close a warehouse at its headquarters. The layoffs by the Anaheim-based retailer are due by April 18. The warehouse operations are moving to Olathe, Kan.
FINANCE
Loan losses continue to mount for Newport Beach-based thrift operator Downey Financial Corp. Downey said 10.9% of its loans were in default at the end of February, up from 9.1% at the end of January.
Irvine-based Impac Mortgage Holdings Inc. said that Chief Investment Officer Andrew McCormick and Chief Operating Officer Richard Johnson have resigned. The company also said in a filing with the Securities and Exchange Commission that it’s delaying the filing of its 2007 annual report because it is in negotiations to settle part of its repurchase liabilities and refinance its remaining warehouse borrowings.
GOVERNMENT
A federal judge ruled that an ordinance regulating how and where wireless telecommunication towers and other devices can be placed in Irvine violates federal law. In response, the city has suspended all pending applications. The City Council is set to meet Tuesday to decide whether to appeal the ruling or to create a new ordinance. Seattle’s NewPath Networks LLC sued the city after the Planning Commission denied its December application to install 23 light poles with cellular antennae in Turtle Rock. Nearby residents worried that the towers would lower property values and be a safety hazard.
