AG finds utility acted lawfully, but was remiss

An investigation by Attorney General Martha Coakley into surging electricity rates found Western Massachusetts Electric Co. acted lawfully, but did a poor job warning industrial and commercial users. Delivery charges for those customers jumped an average of 55 percent in January 2007, which Coakley blamed on transmission and other costs needed to ensure system reliability. At least three companies cited surging power costs as factors in shutting down paper mills. (Robert Gavin)

A former Massachusetts money manager, whose clients said he stole $1.6 million from them, was charged with fraud, state and federal officials said. The US attorney in Massachusetts, the Securities and Exchange Commission, and Massachusetts' securities regulator filed charges against Stephen Lewis Hochberg, accusing him of offering investments in a fake real estate fund. The officials said he used the money to support his lifestyle. Hochberg, who was not registered as an investment adviser, could not be reached for comment. (Reuters)

The Tannery shoe store plans to open its fifth and biggest shop this fall at 711 Boylston St., the former site of Restoration Hardware, which closed last week. Brothers Tarek and Talal Hassan, who own the business and the Boylston Street building, decided to take over the two-story, 16,000-square-foot space. The Tannery will keep open its shop at 402 Boylston St. (Jenn Abelson)

A wireless industry proposal under consideration by the government that would make it easier for cellphone customers to break up with their service providers was met with withering criticism yesterday from consumer advocates. The plan would give consumers a break on fees charged when they quit their service early, but let cellphone companies off the hook in state courts, where they are being sued for hundreds of millions by angry customers. Cellphone companies routinely charge $175 or more for dropping service early. Under a proposal being reviewed by the Federal Communications Commission, the wireless industry would give consumers the opportunity to cancel service without penalty for up to 30 days after they sign a contract or until 10 days after they receive the first bill. The proposal would require companies to reduce fees month by month over the course of a contract, based on how much time is left on the agreement, according to people familiar with the offer who spoke on condition of anonymity because the FCC has not approved it. (AP)

Natick-based BJ'S Wholesale Club Inc., the third-largest US warehouse retailer, said first-quarter profit rose 26 percent as sales grew 12 percent. Shares fell $1.20, or 3.1 percent, to $37.65 but have gained 11 percent this year. Net income increased to $17.2 million, or 29 cents a share, from $13.7 million, or 21 cents, a year earlier. Analysts predicted 28 cents, the average of six estimates Bloomberg compiled.

Talbots Inc. net income declined 69 percent to $1.64 million, or 3 cents a share, on expenses to stop selling men's and children's clothing and other restructuring costs. Profit excluding some expenses was 21 cents, exceeding the average analyst estimate of 12 cents. Revenue at the Hingham company for the quarter ended May 3 dropped 5.4 percent, to $542.4 million, the third straight quarterly decline. Sales at stores open at least a year fell 9.8 percent, including a 7.4 percent decline at Talbots stores. Same-store sales dropped 20 percent at J. Jill. Shares rose 44 cents, or 5.9 percent, to $7.88.

Eaton Vance Corp. said fiscal second-quarter earnings more than doubled on lower sales costs and a stock market rally in April that helped increase assets and fees. Net income in the three months ended April 30 climbed to $53.2 million, or 43 cents a share, from $23.1 million, or 17 cents, a year earlier. The average estimate of eight analysts surveyed by Bloomberg was 44 cents a share. Assets rose 6 percent from a year earlier, to $159.1 billion. Net new flows into funds rose to $4.9 billion from $3.6 billion in the first quarter. The Boston asset manager's stock fell 4.3 percent, to $38.76.

Abiomed Inc. reported a wider-than-expected fiscal fourth-quarter loss due to a surge in expenses. The Danvers medical device maker lost $15 million, or 46 cents a share, compared with $6.3 million, or 22 cents, in the year-ago period. Excluding items, losses totaled 22 cents per share in the latest period. Revenue rose 26 percent to $17.5 million from $13.9 million in the prior-year period. The results fell short of estimates from analysts surveyed by Thomson Financial, who expected a loss of 19 cents per share on revenue of $18.8 million. Shares fell a penny to $13.90. (Wire services) .content>