James Arthur McDonald Jr., 52, was arrested last Saturday at a residence in the city of Port Orchard in Kitsap County, according to a news release from according to the United States Attorney’s Office in the Central District of California.

McDonald appeared Monday in United States District Court in Tacoma, CNBC reported. He was ordered held without bail Monday by a Tacoma judge, who ruled the defendant was a flight risk. McDonald agreed to be transferred from the state of Washington to California within weeks to face federal charges.

McDonald had been considered a fugitive since at least November 2021, after he failed to appear before the United States Securities and Exchange Commission (SEC) to testify after allegations arose he had defrauded investors. The agency stated in its release McDonald appeared to have terminated his previous phone and email accounts and told one person that he planned to “vanish.”

A federal grand jury in Los Angeles in January 2023 returned a seven-count indictment against McDonald, the U.S. Attorneys said. He has been charged with the following crimes:

• One count of securities fraud
• One count of wire fraud
• Three counts of investment adviser fraud
• Two counts of engaging in monetary transactions in property derived from unlawful activity

Later in its release, the agency added that on April 21, a judge found McDonald liable for a total of over $3.8 million, which represented the profits he gained due to his alleged conduct.

Fraud ring: Leader of scheme related to pandemic sentenced to five years

McDonald frequently appeared as an analyst on CNBC, the cable news network that provides business news and real-time financial market coverage and business content, its website states. In its coverage of McDonald’s arrest, CNBC noted he appeared as a “paid contributor” on the network. A 2022 affidavit from an FBI agent seeking McDonald’s arrest acquired by CNBC states McDonald “appeared on CNBC programs several times in late 2020 and in 2021 …”

The statement from the U.S. Attorneys says if McDonald gets convicted of all charges, he would face a statutory maximum sentence of 20 years in federal prison for each securities fraud and wire fraud count, up to 10 years in federal prison on the monetary transactions derived from unlawful activity count, and up to five years in federal prison on the investment adviser fraud count.

Looking at McDonald’s last several years

According to the indictment, McDonald was the CEO and chief investment officer of two companies: Hercules Investments LLC, based in Los Angeles, and Index Strategy Advisors Inc. (ISA), based in Redondo Beach, California.

The U.S. attorneys explained McDonald’s troubles began in 2020 during the height of the COVID-19 pandemic when he made some risky investments and lost clients a significant amount of money.

“In late 2020, McDonald lost tens of millions of dollars of Hercules client money after adopting a risky short position that effectively bet against the health of the United States economy in the aftermath of the U.S. presidential election,” the release states. “McDonald projected that the COVID-19 pandemic and the election would result in major selloffs that would cause the stock market to drop. When the market decline didn’t occur, Hercules clients lost between $30 million and $40 million. By December 2020, Hercules clients were complaining to company employees about the losses in their accounts.”

Since McDonald’s compensation for his investment advisory services primarily was based on a percentage of assets under his management, the losses to Hercules clients meant the fees McDonald was entitled to collect dropped significantly, the agency explained.

Drama in Minnesota: After attempted bribe, jury reaches verdict in case of 7 accused of pandemic-era fraud

Then in early 2021, after losing millions of dollars for his Hercules clients, McDonald solicited millions of dollars’ worth of funds from investors for Hercules but allegedly misrepresented how the funds would be used and failed to disclose the massive losses Hercules previously sustained.

McDonald – a major football fan – said he planned to launch a mutual fund under the ticker symbol “NFLHX.” The losses to Hercules clients and the potential for litigation related to those losses jeopardized the success of that fund because any litigation would have had to be publicly disclosed, the agency said.

The U.S. Attorneys stated that in one case, McDonald obtained $675,000 in investment funds from one victim group in March 2021, and he allegedly misappropriated those funds in various ways, including spending money at a Porsche dealership and at a website that sells designer menswear, court documents state. In addition, nearly $110,000 was transferred to the landlord of a home McDonald was renting in Arcadia, California.

McDonald also allegedly sent clients of his firm ISA false account statements. One client who invested approximately $351,000 later needed the money to make a down payment on a home was informed by McDonald that much of the money had been lost. The investor never got his full investment back, according to the agency statement.

Steve Coogan is the lead editor of MyNorthwest. You can read more of his stories here. Follow Steve on X, or email him here.

CEO David Calhoun appeared before the Senate investigations subcommittee, which is chaired by Sen. Richard Blumenthal, D-Conn., a Boeing critic. Blumenthal opened the hearing by recognizing the relatives of the crash victims and the family of a Boeing whistleblower who died earlier this year.

“This hearing is a moment of reckoning,” the senator said. “It’s about a company, a once iconic company, that somehow lost its way.”

Calhoun’s appearance was the first before Congress by a high-ranking Boeing official since a panel blew out of a 737 Max during an Alaska Airlines flight in January. No one was seriously injured in the incident, but it raised fresh concerns about the company’s best-selling commercial aircraft.

Speaking out: Families of those who died in Boeing crashes press DOJ for prosecution

Calhoun sat at the witness table and fidgeted with his eyeglasses as Blumenthal spoke. Sen. Ron Johnson, R-Wisc., thanked the CEO for coming to face “tough questions.” Before giving his prepared opening statement, Calhoun stood and faced the people in the audience holding poster-sized photos of some of the 346 people who died in the 2018 and 2019 crashes.

“I apologize for the grief that we have caused,” he said.

Senators asked Calhoun if Boeing retaliated against employees who reported concerns and if he had ever spoken directly with any whistleblowers. He replied that he hadn’t but said he would.

The toughest line of inquiry came from Sen. Josh Hawley, R-Mo., who repeatedly asked Calhoun about the size of his salary. Calhoun, who has said he plans to retire at the end of the year, earned $32.8 million in compensation last year.

“You are cutting corners, you are eliminating safety procedures, you are sticking it to your employees, you are cutting back jobs because you are trying to squeeze every piece of profit you can out of this company,” Hawley said, his voice rising. “You are strip-mining Boeing.”

Asked by Hawley why he had not resigned, Calhoun answered: “Senator I’m sticking this through. I’m proud of having taken the job. I’m proud of our safety record. And I am very proud of our Boeing people.”

Hawley interrupted. “You’re proud of the safety record?” he asked with incredulity.

Calhoun responded, “I am proud of every action we’ve taken.”

Hawley shot back, “Frankly sir, I think it’s a travesty that you’re still in your job.”

Hours before Calhoun arrived on Capitol Hill, the Senate panel released a 204-page report with new allegations from a whistleblower who said he worries that “nonconforming” parts — ones that could be defective or aren’t properly documented — are going into 737 Max jets.

Sam Mohawk, a quality assurance investigator at the 737 assembly plant near Seattle, claims Boeing hid evidence of the situation after the Federal Aviation Administration informed the company a year ago that it would inspect the plant.

“Once Boeing received such a notice, it ordered the majority of the (nonconfirming) parts that were being stored outside to be moved to another location,” Mohawk said, according to the report. “Approximately 80% of the parts were moved to avoid the watchful eyes of the FAA inspectors.”

Previous coverage: Boeing tells federal regulators how it plans to fix aircraft safety and quality problems

The parts were later moved back or lost, Mohawk said. They included rudders, wing flaps and tail fins — all crucial in controlling a plane.

The FAA said it would “thoroughly investigate” claims raised in the Senate report. A Boeing spokesperson said the company got the subcommittee report late Monday night and was reviewing the claims.

The 737 Max has a troubled history. After the Max jets crashed in 2018 in Indonesia and 2019 in Ethiopia, the FAA subsequently grounded the aircraft for more than a year and a half. The Justice Department currently is considering whether to prosecute Boeing for violating terms of a settlement it reached with the company over allegations it misled regulators who approved the plane.

Mohawk told the Senate subcommittee that the number of unacceptable parts has exploded since production of the Max resumed following the crashes. He said the increase led supervisors to tell him and other workers to “cancel” records that indicated the parts were not suitable to be installed on planes.

The FAA briefly grounded some Max planes again after January’s mid-air blowout of a plug covering an emergency exit on the Alaska Airlines plane. The agency and the National Transportation Safety Board opened separate investigations of Boeing that are continuing.

The company says it has gotten the message. Boeing says it has slowed production, encouraged employees to report safety concerns, stopped assembly lines for a day to let workers talk about safety, and appointed a retired Navy admiral to lead a quality review. Late last month, it delivered an improvement plan ordered by the FAA.

During his Senate appearance, Calhoun defended the company’s safety culture.

“Our culture is far from perfect, but we are taking action and making progress,” Calhoun said in his prepared remarks Tuesday. “We are taking comprehensive action today to strengthen safety and quality.”

The drumbeat of bad news for Boeing goes on, however.

In the past week, the FAA said it was investigating how falsely documented titanium parts got into Boeing’s supply chain, and federal officials examined “substantial” damage to a Southwest Airlines 737 Max after an unusual mid-flight control issue.

Boeing disclosed that it hasn’t received a single order for a new Max — previously its best-selling plane — in two months.

Blumenthal first asked Calhoun to appear before the Senate subcommittee after a whistleblower, a Boeing quality engineer, claimed that manufacturing mistakes were raising safety risks on two of the biggest Boeing planes, the 787 Dreamliner and the 777. He said the company needed to explain why the public should be confident about Boeing’s work.

Boeing pushed back against the whistleblower’s claims, saying that extensive testing and inspections showed none of the problems that the engineer had predicted.

The Justice Department determined last month that Boeing violated a 2021 settlement that shielded the company from prosecution for fraud for allegedly misleading regulators who approved the 737 Max. A top department official said Boeing failed to make changes to detect and prevent future violations of anti-fraud laws.

Prosecutors have until July 7 to decide what to do next. Blumenthal said at the start of Tuesday’s hearing that he thinks the Justice Department should prosecute the company.

Families of people who died in the Boeing Max crash in Ethiopia have pushed the Justice Department repeatedly to prosecute Boeing.

“We will not rest until we see justice.,” said Zipporah Kuria, whose father died in the crash. She said the U.S. government should “hold Boeing and its corporate executives criminally responsible for the deaths of 346 people.”

As Carfax Editor in Chief Patrick Olsen explained, the recall is for nearly half a million Kia Telluride SUVs nationwide.

“It’s a popular three-row SUV and because of fears of a fire… it’s one of those rare but urgent recalls that they’re requiring owners or asking owners to park outside because of the fire risk,” Olsen said.

⚠️ CONSUMER ALERT ⚠️ Kia recalls more than 462,000 vehicles and advises owners to park outside.

More: https://t.co/pPrf9ef6LW pic.twitter.com/M8S9zPmnGG

— nhtsagov (@NHTSAgov) June 7, 2024

He said the federal government wants Telluride owners to avoid park in a garage, or any other structure.

Olsen said there’s an issue with the seat switch that moves the front seats.

“The powered front seat to lift it, raise it, moving forward and back, if it gets stuck, NHTSA says there is an elevated risk of fire,” Olsen said.

Other issues out there: Your car’s airbag might be a recall from over 10 years ago

Looking at the recall report more, it notes strong external impact to the recalled Tellurides’ front power seat side cover or seat slide knob can result in internal misalignment — and with continuous operation, that can cause overheating. People driving vehicles with the issue may find they can’t adjust the power seat, may notice a burning or melting smell, or see smoke rising from underneath the seat.

To fix this, dealers will install a bracket for the power seat switch back covers and replace the seat slide knobs at no cost. Until the vehicles are repaired, owners are being instructed to park their cars outside and away from buildings.

Kia has until July 30 to mail out notices and inform car owners and Olsen said, “The first thing owners need to do at this point is be patient.”

He said, “One of the issues with recalls in this country is that it’s a law that automakers must alert owners as soon as they are aware of a problem. But very often that is faster than they can come up with a remedy. I’m not aware if a remedy is in place for this yet or not. But it seems like it won’t be ready to roll out to owners until the end of July.”

Additional Kia recall issues

This isn’t the only recall impacting Kia Telluride owners. In March, Kia America said it would be recalling more than 427,000 of 2020-2024 Telluride SUVs due to a defect that may cause the cars to roll away while they’re parked.

Last fall, Kia and Hyundai announced previous “park outside” recalls for 3.4 million other car and SUV models due to the danger of engine compartment fires. Amid long-delayed repairs, many of those vehicles remained on the road months later, posing serious concerns from drivers and consumer safety advocates.

“Hyundai and Kia, back in September recalled 3.3 million vehicles for a potential issue with their anti-lock brakes,” Olsen said. “So, it’s a very different issue.”

Hyundai owns part of Kia, though the two companies operate independently.

More from Micki Gamez: Bellevue Police Department has had enough with traffic fatalities

The NHTSA offers additional tips for car owners looking to check for recalls.

• Use NHTSA’s recalls lookup tool to use a license plate number or vehicle identification number to search for any open safety recalls, including the urgent Kia recall.
• Download our SaferCar app and let it check automatically.
• If a vehicle does have a safety recall, call the automaker’s local dealer to schedule the free recall repair.
• Sign up at NHTSA.gov/alerts to be notified by email if a vehicle is affected by a future recall.

Contributing: The Associated Press

You can read more of Micki Gamez’s stories here. Follow Micki on X, formerly known as Twitter, or email her here.

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The most recent Seattle Transportation Levy Proposal by Seattle City Council Member and Transportation Committee Chair Rob Saka, introduced Tuesday, adds $100 million to Seattle Mayor Bruce Harrell’s proposed $1.45 billion plan.

Should Saka’s plan make its way into a fall ballot measure, it would pencil out to $499 a year to a property owner of an $866,000 home. That’s $30 more a year than the mayor’s plan and roughly $223 more than what the same owner is paying for the expiring 2015 Move Seattle transportation levy.

The yearly tax for the nearly $1 billion housing levy passed by city voters by a 69% to 31% margin in November would cost that same homeowner about $390 per year, an increase of $265 from the current housing levy.

Rising costs: Seattleites may have to pay $41 per month for transportation levy

Homeowners could pay nearly $1,000 more a year

Add it up, that’s roughly $900 per year for the owner of an $866,000 house, an increase of $488 from what they are paying now.

“That’s going to be sticker shock for a lot of Seattle homeowners,” former Seattle City Council member Alex Pedersen, speaking about the transportation levy, said.

He said over the last several years, Seattle has been in a mood of taxing itself with the doubling of the property tax portion that deals with parks, tripling the housing levy, raising money for crisis care centers, and bonds for an update to Harborview Medical Center.

“These are all good causes, but the transportation levy is questionable because it doesn’t have to cost that much,” Pedersen, who served as the Council Transportation Chairman during his tenure, said.

Pedersen: New Seattle levy is ‘making same mistakes’

He said the new tax levy is “making the same mistakes as the old levy.”

“It has huge pet projects that are very expensive, rather than focusing on the basics such as repaving the roads, fixing our bridges, and building more sidewalks,” Pedersen said. “It’s unaffordable, inequitable, and ineffective.”

During Tuesday’s committee hearing by the Select Committee on the 2024 Transportation Levy, Saka promoted several aspects of his proposal, saying it includes accountability measures to make sure the money is well spent.

“It’s not an exaggeration to say that this levy quite literally has the ability to save lives,” he said. “Too many people are dying on our roads and streets, and we are growing further away from our Vision Zero goals.”

The chair’s amendment, as it’s being called, would increase spending on new sidewalks in areas where there are none, triple funding for safety improvements on public transit, and increase the number of electric vehicle charging stations, among other things.

More transportation: Vashon Islanders can’t wait another 4 years for new ferry

New transportation levy to reduce deadly crashes, fund repairs

The baseline proposal by Harrell sets aside the largest chunk of the levy money, $423 million, for repaving arterial streets that carry the most buses, trucks, and cars. While $221 million will go to keeping bridges in “reliable working condition,” $162 million to meet Vision Zero goals of reducing traffic collisions and fatalities at problematic intersections, $135 million to build and repair sidewalks and $114 million to expand Seattle’s protected bike lane network.

There are several more projects that round out the mayor’s levy total of $1.45 billion.

Pedersen said the council would better serve the public if the levy was broken up into separate ballot measures.

“Each idea should be able to stand on its own instead of being camouflaged or hidden by other components,” Pedersen said.

A final council vote on the complete levy package is scheduled for July 2, the last possible day for the levy to be submitted for the November 7 ballot.

Matt Markovich often covers the state legislature and public policy for KIRO Newsradio. You can read more of Matt’s stories here. Follow him on X, or email him here.

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The corporations have had to pay the AG’s Office over $40 million which is being returned to consumers who meet the criteria. To be eligible: consumers must live in Washington and have an income no greater than 175% of the federal poverty level. Single households will get a $50 check and households with two or more will get a $120 check.

The AG’s Office stated those who believe they are eligible but haven’t received a refund should submit a claim. The deadline is Wednesday, June 5. To submit a claim, go here.

However, the AG’s Office started sending out checks last December.

Previous coverage: Checks are out to 400,000 Wash. households from $40M price-fixing settlement

“When powerful interests break the law and harm Washingtonians, my office holds them accountable,” AG Bob Ferguson stated, stressing the importance of this restitution. “Washington families were cheated by corporate price-fixing conspiracies they knew nothing about.”

The refunds are specifically targeted to aid those Washingtonians most affected by the price-fixing schemes, Ferguson said. Examples provided by the AG’s Office include various family structures and income brackets, offering relief to those struggling due to corporate malpractice.

Ferguson faces criticism for refund disbursement

However, in January, Ferguson faced criticism for sending checks to dead people. Washington State Republican Representative Jim Walsh called out Ferguson for the process of distributing the refunds, saying they appear to be “sloppy and mismanaged.”

‘It’s not our list’: AG Bob Ferguson responds after state sent checks to dead people

Walsh called the money being sent out the “Fishy Fergie Checks.”

“Quite a few people who’ve been deceased for years or decades are getting the checks,” Walsh said.

Walsh claimed the number of people who contacted him about long-dead relatives receiving checks is in the hundreds. He also stated there are cases where non-low-income residents are getting refunds.

“It’s not exactly clear what mailing list or database the state attorney general is using to send the checks out,” Walsh added.

KIRO Newsradio asked Ferguson what went wrong.

“We worked with Experian, so it’s not our list,” Ferguson said. “We went to a data broker or somebody who would have, what we believed, to be as reliable a list as can exist for sending out 400,000 checks to Washingtonians. Obviously, on a data set that large, the system’s not going to be perfect.”

But there was something else that was raising eyebrows. Ferguson’s name is on the check and, on an accompanying note, that’s being distributed at a time when he’s running for governor.

“A cynic would say that he did this thing in an attempt to get his name on checks to people to encourage them to support his gubernatorial campaign,” Walsh said.

Ferguson said his name is only on the check so recipients know it’s a real government check, not part of a scam.

Around 402,200 Washington households are set to receive the reimbursements, benefitting over 1.2 million residents, constituting around 15% of the state’s population.

For any questions regarding the lawsuit and refund process, email refundcheck@agt.wa.gov, write to the Distribution Administrator, P.O. Box 91485, Seattle, WA 98111 or call 866-601-1516.

Contributing: Matt Markovich, KIRO Newsradio

Julia Dallas is a content editor at MyNorthwest. You can read her stories here. Follow Julia on X, formerly known as Twitter, here and email her here.

Heather Bosch is an award-winning anchor and reporter on KIRO Newsradio. You can read more of her stories here. Follow Heather on X or email her here.

According to a news release from the Washington State Office of the Insurance Commissioner (OIC) Wednesday, 13 health insurers filed an average requested rate increase of 11.3% in the individual market.

People who don’t get health insurance from their employers shop in the individual market. As cited in the release, an estimated 255,784 Washingtonians are currently enrolled in individual health plans and would be affected by the increase.

However, the OIC is still reviewing the proposed plans and their rates, and final decisions will be made in the fall.

More costs: Puget Sound Energy customers now paying more as rate hike takes effect

“I recognize that any proposed increase in price is deeply upsetting to those struggling to pay for coverage today,” OIC Commissioner Mike Kreidler said. “People should know that these rates are not final and my office will be carefully reviewing each request to validate the assumptions being made by our state’s insurers. We will do everything under our authority to ensure that any rate changes are justified.”

To see a list of proposed rate changes for the 2025 individual market, head here. The OIC also directed people to Washington’s online health insurance market to find financial subsidies that help lower monthly premiums, based on income.

According to the release, the state legislature directed the OIC to study different policy ideas that could lower the overall cost of healthcare. The findings are due Aug. 1.

Washington insurance transparency rule goes into effect Saturday

While on the topic of insurance, a transparency change rule for auto and homeowner insurance will also start June 1.

According to a press statement from the OIC, insurance companies will have to let policyholders know why their premiums have gone up. The rule is reportedly the first of its kind in the country.

“If your insurance company is going to increase your premium, you have a right to know why,” Kreidler said. “Hundreds of consumers, every year, have told us they are unable to get a clear answer from their insurance company about why they’re being charged more. This is pretty basic information that should be available, and now it will be.”

The rule will go into effect in two phases

Phase 1: Starting Saturday, insurance companies have to include a disclaimer on renewal notices or billing statements that tells the policyholder they can request more details about their premium increase. According to the release, the company then has 20 days from receiving a written request (through mail or email) to deliver a “clear, concise statement, in writing, providing a reasonable explanation for the premium increase.”

Earlier coverage: Yikes! Washington auto insurance rates blast past inflation

Phase 2: In three years, starting June 1, 2027, insurance companies must send a notice at least 20 days before renewing a policy with a 10% or more increase. The OIC also stated the requirements for explanations get more specific in this second phase. Insurance companies will have to provide a clear explanation using factors like claims history, discounts and base rate changes, among others.

The explanation can also include demographic factors like the policyholder’s age, credit history, education, gender, marital status and occupation. For auto insurance, companies might need to include the car’s garaging location, driving record, miles driver, the number of drivers and the number of vehicles on the policy. Homeowner insurance may factor in the property’s age, location and value.

The news release also noted that if policyholders believe their insurance company isn’t meeting the standards, or want to file a complaint, they can do so on the OIC’s website.

Editors’ note: This piece originally was published Thursday, May 30. It has been updated and republished multiple times since then.

Julia Dallas is a content editor at MyNorthwest. You can read her stories here. Follow Julia on X, formerly known as Twitter, here and email her here.

The Washington State Employment Security Department’s Worker Adjustment and Retraining Notification (WARN) showed Friday 172 employees will be impacted by an upcoming “closure.” The department reports the “layoff start date” as Aug. 1.

In a statement sent to KIRO Newsradio Friday afternoon, Amazon spokesperson Sam Stephenson confirmed the Tukwila warehouse will be closing while also emphasizing that despite the company’s decision to shutter the facility, existing employees will have the opportunity to move to other locations.

“We’re always evaluating our network to make sure it fits our business needs and to improve the experience for our employees, customers, partners, and drivers,” Stephenson said. “As part of that effort, we may close older sites, enhance existing facilities, or open new sites, and we weigh a variety of factors when deciding where to develop future sites or maintain a presence.  In this case, employees at our Tukwila facility are being offered opportunities to transfer to other facilities nearby, or support if they choose not to stay with Amazon.”

Amazon also confirmed that is working with employees to “accommodate their scheduling preferences during this process.”

The company also stated it will fulfilling customer orders from its existing sites.

Expedia cuts: 208 Washington employees included in round of layoffs

As Geekwire noted in its coverage, Amazon employs 75,000 people in the Seattle region, many of them corporate and tech workers. The online retail giant’s workforce has reached 1.52 million people around the world with a headcount rise of 4% year-over-year, as of March 31.

On a call with reporters in April following the company’s first quarter earnings release, Amazon CFO Brian Olsavsky said the year-over-year growth in headcount was mainly driven by its warehouse-related operations, Geekwire stated.

Recent Amazon layoffs

Amazon laid off 27,000 corporate workers in the first half of 2023 in various areas of the company.  However, warehouse jobs weren’t affected in those cuts of workers. The company’s workforce doubled during the COVID-19 pandemic in the midst of a hiring surge across almost the entire tech sector, The Associated Press explained. Other tech companies announced tens of thousands of job cuts last year as well.

National trend: Electronic Arts cutting about 5% of workforce with layoffs ongoing in gaming, tech sector

At the beginning of this year, Twitch, which also is owned by Amazon, said it had plans to cut more than 500 jobs in a bid to save on costs. The video streaming platform’s CEO Dan Clancy said in an email to employees that even with cost cuts and growing efficiency, the platform “is still meaningfully larger than it needs to be given the size of our business.”

Amazon-owned online audiobook and podcast service Audible also stated at the beginning this year it had plans to conduct layoffs, about 5% of its workforce. In a memo sent to employees, Audible CEO Bob Carrigan said that the company is in good shape, but faces an “increasingly challenging landscape.” In addition, Amazon’s Prime Video and MGM Studios unit, is trimming hundreds of employees as it cuts back in areas that are not delivering.

Contributing: The Associated Press

Steve Coogan is the lead editor of MyNorthwest. You can read more of his stories here. Follow Steve on X, or email him here.

The company and the union representing the firefighters, IAFF Local I-66, stated they’ve reached a tentative agreement on a contract, according to KIRO 7.

No details on the deal are yet available, as of this reporting.

Firefighters still have to vote on the contract. The results of the vote are expected Thursday afternoon. If the contract is approved, firefighters could be back on the job Saturday morning, according to KIRO 7.

Boeing firefighters rejecting earlier proposals

Boeing firefighters overwhelmingly rejected the company’s previous contract offer on May 22 to the union, IAFF Local I-66, after they stepped away from picket lines for the first time since May 4.

There are about 125 firefighters in the unit, stationed across the Puget Sound and Moses Lake and represented by the IAFF Local I-66 union.

“This round of negotiations resulted in Boeing presenting its second, ‘Best and Final Offer,’ a contradiction in terms, and a clear sign of the corporate giant’s complete lack of respect for our members,” IAFF General President Edward A. Kelly said, according to KIRO 7.

Boeing responded to the firefighter’s rejection with a prepared statement.

“It’s unfortunate the union’s leadership has continued its pattern of bad faith bargaining. The union earlier accepted and agreed to endorse our strong offer which provides an average of $21,000 in increased take-home pay and additional wage increases,” Boeing stated, according to KIRO 7. “Our contingency plan remains in place and ensures that we can provide the same levels of safety and emergency response with highly qualified firefighters indefinitely.”

Boeing said the four-year deal it offered would have raised the firefighters’ average pay 23.1% from $91,000 to $112,000 in the first year with additional pay raises to follow. The company also stated the offer included an “improved wage growth schedule.”

Boeing locked out its firefighters earlier this month after they threatened to strike. The firefighters had been on the picket line since, until the two parties agreed on a tentative deal May 29.

Previous coverage: Boeing locks out private firefighters in Seattle

Other union members show up to support Boeing firefighters

As KIRO 7 explained in a story published Saturday, around 300 union workers across Washington joined Boeing firefighters on the picket line in Seattle last Saturday. The first responders have been picketing in six different locations, including Renton, Seattle, Auburn and Everett.

Representatives from more than 400 state and local unions took turns to join the efforts in Seattle near the intersection of East Marginal Way South and 14th Avenue South, leaders said, KIRO 7 stated.

As dozens lined the street outside of Boeing, hundreds of others were preparing at a nearby site.

“This is really about safety. It’s inconceivable to me and to a lot of people in the labor movement that Boeing would choose to lockout their firefighters at a time where the whole world is watching their failure to provide safety in the workplace,” April Sims, president of the Washington State Labor Council, said, according to KIRO 7.

Sims added they wanted to stand in solidarity with Boeing firefighters as they urge the global company to negotiate “fairly with their firefighters.”

“This fight is about not just about the firefighters who are doing the work at Boeing today, but future firefighters who want to join this profession. This is about pay equity, dignity, and respect. And Boeing’s decision to lockout their firefighters puts all of their employees and rest of the workers at their plants at risk,” Sims said, KIRO 7 reported.

“It is the cornerstone of the work that we do to make sure when folks go to work, they can work in a safe environment and they can get home to their families that they love and care about,” Sims added.

‘We’re having a hard time keeping people in our department’

Boeing firefighters got to the picket line after contract negotiations broke down May 4 at 12:01 a.m. A member of the firefighters union’s executive team previously told KIRO Newsradio they are so underpaid that retaining qualified firefighters is nearly impossible.

Locked out: Local Boeing firefighters hit the picket line for livable wages

“Our guys are coming in at $25 per hour and are a couple thousand dollars away from being eligible for food stamps, right now,” union Vice President John Riggsby said.

Union leaders said that has led to a revolving door at Boeing’s private fire department and paramedics are included.

“They’re having to either work a second job or find employment elsewhere, so we’re having a hard time keeping people in our department because of that,” Riggsby said.

KIRO Newsradio has reached out to the firefighters union for an updated comment on the contract offer, but have not yet heard back.

Contributing: KIRO 7; James Lynch, KIRO Newsradio; Frank Sumrall, MyNorthwest

Steve Coogan is the lead editor of MyNorthwest. You can read more of his stories here. Follow Steve on X, or email him here.

“William Tell overture, circus, big top what you expect to hear at the circus, Count Dracula organs, and then there’s one more I don’t remember the name of,” Michael Deibert, who lives in the complex next to the Walgreens on Pacific and 84th, said. “I could have my headphones on music playing and I can hear that through the walls over my headphones.”

Walgreens sent KIRO 7 a statement about the loud music it plays at these locations: “The safety of our patients, customers, and team members is our priority. This Walgreens participates in a program designed to discourage loitering by playing music at select times.”

KIRO 7 spoke to some of the people staying in an encampment behind one of the Walgreens locations. The people staying there said they have no intention of leaving.

“They play Beethoven all day,” one of the men said. “Just block it out.”

• Follow this link to read additional stories from KIRO 7

A 7-11 is also using the same strategy to keep transients away. However, neighbors say the noise is more of a nuisance to them.

“All day long! It goes throughout the night,” Alicia Ratterree said. “I know what it’s for and I don’t necessarily stand for that.”

The City of Tacoma sent KIRO 7 more than a dozen noise complaints that have been filed between the three locations. So far, only one has been issued a citation by the Neighborhood and Community Code Enforcement.

Tacoma Police said citations like this do not fall under police jurisdiction and are typically issued by code enforcement. TPD said they are actively working on a resolution for these complaints because callers are being put through a revolving door without any tangible solutions or changes.

“We’re exploring the option of moving, but we’ve been talking about it for the last year between having to deal with the music, the transients,” Deibert said.

KIRO 7 is still waiting to hear back from 7-11 for comment.

• Follow this link to read additional stories from KIRO 7

The 56-year-old chain made the filing late Sunday, days after shuttering dozens of restaurants.

“This restructuring is the best path forward for Red Lobster. It allows us to address several financial and operational challenges and emerge stronger and re-focused on our growth,” said Red Lobster CEO Jonathan Tibus, a corporate restructuring expert who took the top post at the chain in March.

Red Lobster said it will use the bankruptcy proceedings to simplify its operations, close restaurants and pursue a sale. As part of the filings, Red Lobster has entered into a so-called “stalking horse” agreement, meaning it plans to sell its business to an entity formed and controlled by its lenders.

Red Lobster has been struggling for some time as it has had to deal with lease and labor costs piling up in recent years. The filing could help Red Lobster exit from some long-term contracts and renegotiate many of its leases, unnamed sources familiar with the matter told Bloomberg News last month.

The move comes after restaurant liquidator TAGeX Brands announced last week that it was going to auction off the equipment of over 50 Red Lobster locations that were recently closed as part of the seafood chain’s “footprint rationalization.” The locations span across more than 20 states — cutting back on Red Lobster’s presence in cities like Denver, San Antonio, Indianapolis and Sacramento, California. TAGeX Brands states it is selling equipment from five locations in Florida and California and four restaurants in Maryland and Colorado.

TAGeX Brands’ auctions began last Monday and ran through last Thursday. The sales were “winner takes all” — meaning that one winner will receive the entirety of contents for each location. Images on TAGeX Brands’ website indicated that includes ovens, refrigerators, bar setups, dining furniture and more.

TAGeX Brands called the liquidation “the largest restaurant equipment auction event ever.” In a statement, founder and CEO Neal Sherman said that the goal of such online auctions was to “prevent high-quality items from being discarded in landfills” and instead promote sustainable reuse.

It’s unclear if Red Lobster plans to shutter any additional restaurants in the near future. The Orlando, Florida-based company did not immediately respond to The Associated Press’ requests for comment before publishing its story Tuesday.

Silverdale location is closed; 9 Washington restaurants remain

On Red Lobster’s website, a handful of impacted locations were listed as “temporarily closed” or “unavailable” Tuesday morning.

The TAGeX Brands website indicated some the equipment it will be trying to sell comes from the location in Silverdale. Those who visit the Red Lobster website and head to the page for the Silverdale location will see the hours of operation are marked as “closed” for all seven days of the week.

The Red Lobster closures have not affected the other nine locations in the state of Washington. Restaurants in Federal Way, Kelso, Kennewick, Lynnwood, Olympia, Spokane, Tacoma, Vancouver and Yakima remain open as normal, according to the Red Lobster website.

In addition, the five locations in Oregon have not been affected by the closures. Restaurants in Eugene, Gresham, Medford, Salem and Tigard also are open as usual, the Red Lobster website states.

Have you eaten at one of these restaurants? 6 in Washington up for major culinary award

A sign announcing the closure of a Red Lobster restaurant is posted on the front of a Red Lobster restaurant on May 14, 2024 in Fremont, California. (Photo: Justin Sullivan, Getty Images)

Lingering difficulties for Red Lobster

Maintaining stable management has also proven difficult, with the company seeing multiple ownership changes over its history. Earlier this year, Red Lobster co-owner Thai Union Group, one of the world’s largest seafood suppliers, announced its intention to exit its minority investment in the dining chain.

Thai Union first invested in Red Lobster in 2016 and upped its stake in 2020. At the time of the January announcement on its plans to divest, CEO Thiraphong Chansiri said the COVID-19 pandemic, industry headwinds and rising operating costs had impacted Red Lobster and resulted in “prolonged negative financial contributions to Thai Union and its shareholders.”

For the first nine months of 2023, the Thailand company reported a $19 million share of loss from Red Lobster.

And then there’s been the problem of endless shrimp. Last year, Red Lobster significantly expanded its iconic all-you-can-eat shrimp deal. But customer demand overwhelmed what the chain could afford, which also reportedly contributed to the millions in losses.

Red Lobster’s roots date back to 1968, when the first restaurant opened in Lakeland, Florida. In the decades following, the chain expanded rapidly. Red Lobster currently touts more than 700 locations worldwide.

Editors’ note: This piece originally was published on Thursday, May 16, 2024. It has been updated and republished multiple times since then.

Contributing: The Associated Press; Steve Coogan, MyNorthwest

Seattle-based Nordstrom Inc. said its former chairman died at his home on Saturday. He was 90.

“Our dad leaves a powerful legacy as a legendary business leader, a generous community citizen and a loyal friend,” said a statement from his sons, Nordstrom CEO Erik Nordstrom and Pete Nordstrom, the company’s president.

The chain traces its roots back to a Seattle shoe store opened by Swedish immigrant John Nordstrom and a partner in 1901.

Bruce Nordstrom and other members of the third generation took leadership reins in 1968. They brought the company public in 1971 and expanded its footprint across the U.S. while also launching the lower-priced Nordstrom Rack stores.

Bruce Nordstrom retired from his executive role in 1995 as the third generation handed over leadership to the fourth. He retired as chairman of Nordstrom’s board of directors in 2006.

He was one of several Nordstrom family members who in 2017 made a push to take the company private, proposing to buy out the 70% of the department store’s stock they didn’t already own. Those talks failed in 2018 but earlier this year, his sons started another series of buyout negotiations.

In addition to two sons, Nordstrom’s survivors include his wife, Jeannie, his sister and fellow philanthropist Anne Gittinger, and seven grandchildren.

A spokesman for Spirit AeroSystems confirmed the layoffs at its Wichita, Kansas, plant on Thursday that would trim its workforce of just over 13,000 people. Spirit is Boeing’s most important supplier on the 737s because it makes fuselages and installs door plugs like the one that flew off the plane. But it’s not clear whether Spirit or Boeing employees were the last ones to touch that panel.

“The recent slowdown in the delivery rate on commercial programs compels a reduction to our workforce in Wichita,” Spirit spokesman Joe Buccino said to The Associated Press (AP).

Spirit also released a short statement on its website that can be linked to from its homepage. It began the same way as Buccino’s statement to the AP did by noting the delivery rate slowdown. It added that it plans to inform workers that will be affected soon.

“In the coming weeks, we will inform affected employees,” the statement reads. “We are committed to implementing this transition in as compassionate a manner as possible.”

Boeing confirmed this spring that it is in talks to buy Spirit, which was once a part of the plane-maker before it was spun off. Buying Spirit back would reverse a longtime Boeing strategy of outsourcing key work on its passenger planes. That approach has been criticized after problems at Spirit disrupted production and delivery of popular Boeing jetliners, including 737s and 787s.

Previous coverage: Boeing says it’s in talks to buy Spirit AeroSystems, key supplier on troubled 737 Max

The International Association of Machinists and Aerospace Workers union expressed concern about the layoffs and said it would try to help workers who lose their jobs in the coming weeks.

“Together, we will continue to work to protect the strength of the aerospace industry in Wichita and ensure our members receive the assistance and resources they need to overcome this challenge and emerge stronger,” the union said.

Contributing: The Associated Press; Steve Coogan, MyNorthwest

Homelessness is up 23% in King County

According to the PIT Count, the number of people experiencing homelessness in King County, the most populated county in Washington, has gone up 23% since 2022. There were 7,685 unsheltered people (57%) and 5,683 sheltered people (43%) for a total of 13,368 in 2022. There were 9,810 unsheltered people (60%) and 6,575 sheltered people (40%) for a total of 16,385 in 2024. However, KCRHA said the numbers are a severe undercount.

The Washington State Department of Commerce has yet to release homeless numbers for the entire state of Washington.

Related news: Washington youth homelessness has dropped 40% but gaps remain, report says

The KCRHA stated homelessness in King County continues to disproportionately affect communities of color. Out of the people experiencing homelessness, 19% identify as Black/African American, but 2020 U.S. Census data shows only 6% of King County’s population identifies as Black/African American.

The KCRHA also noted that “similarly, 7% of people experiencing homelessness identify as American Indian, Alaskan Native, or Indigenous, but that group makes up only 1% of King County’s population.”

“As our community continues the dialogue about race and equity, it is important to recognize that homelessness is an outcome of structural racism and racial inequities,” the KCRHA stated.

According to the National Alliance to End Homelessness, African Americans have been systemically denied rights and opportunities. The statement echoes numbers in Washington’s Housing Advisory Plan.

Washington plans half a million affordable homes in 20 years

At the beginning of this week, the state released a plan to tackle the housing crisis. The plan outlines how the state is preparing to add more than a million new homes in Washington in the next 20 years, with half of those being affordable housing. It also provides a roadmap of the housing crisis, along with recommendations.

The state determined those who make less than 50% of the median family income (MFI) qualify for affordable housing. The U.S. Department of Housing and Urban Development (HUD) created a map showing different levels of income throughout Washington in 2022.

Map of HUD Median Family Income by County in 2022. (Image courtesy of Washington State Department of Commerce)

“Gov. Jay Inslee and legislature have taken significant actions in recent years to address this housing shortage. However, housing development is a complex challenge, and additional state and local actions are still needed to ensure that an abundance of new housing options become a reality in Washington’s communities,” the plan stated.

The plan was put together by the Affordable Housing Advisory Board (AHAB) with assistance from Commerce and BERK Consulting.

According to the plan, homelessness got worse in all of Washington’s counties from 2016 to 2022 except for Clark, Cowlitz, King and Klickitat. The AHAB also found that while renting is getting more affordable, homeownership is becoming less affordable. In addition, progress toward reducing racial disparities is slow.

It also found that while Washington housing has dramatically increased, it isn’t creating enough middle and multifamily housing.

Other news: Washington sees decline in new housing permits for second straight year

Recommendations to increase affordable housing are gathering more funding to lower housing costs, reworking zoning laws for building houses, making administrative work more efficient and making construction less expensive. It also recommends increased Housing Trust Fund flexibility, supporting low-income home ownership and fostering more support for relocation assistance.

What led to the Washington housing crisis?

“Much of the problem comes down to a mismatch between the demand for housing and the limited supply available to meet that demand,” the plan explains. “We can trace this most recent period of housing price escalation back to the Great Recession and housing market collapse in 2008-2009.”

AHAB also attributed COVID-19 to the housing crisis, saying housing production was halted and people lost their jobs.

“The housing construction industry was slow to recover and significantly lagged behind the high demand for housing from new workers. In fact, the rate of new home production has yet to reach its earlier peak in 2005-2007,” the plan reads.

But people become homeless for different reasons. Within the plan, people who reside in Washington shared their stories. Juanita had to leave her home because of domestic violence; Abdul experienced a mental health crisis and was hospitalized; Tiarha couldn’t find affordable alternative housing for her and her daughter due to application fees and income requirements.

The path to home security also looks different for each person.

More on housing: Luxury tiny homes creating a stir in Washington home market

Juanita and her family recently found help through a voucher program; Abdul connected with a social worker at a hospital who led him to a counselor; Tiarha and her daughter were able to connect with a resource navigator.

Along with the earlier recommendations, AHAB added that aging, memory care and nursing homes to serve low-income individuals or people moving out of homelessness should be studied.

Julia Dallas is a content editor at MyNorthwest. You can read her stories here. Follow Julia on X, formerly known as Twitter, here and email her here.

According to CBS News, Costco now sells around $200 million a month in gold and silver. Wells Fargo equity analyst Edward Kelly told CBS sales have climbed because of “Costco’s aggressive pricing and high level of customer trust.”

Costco sells tubes of 25, 1-ounce Canada Maple Leaf Silver Coins, priced at about $680. The coins have a maple leaf on the front and King Charles III on the back.

The silver coins come after the company started selling gold bars last October.

In a company earnings call in October 2023, according to The Associated Press, CFO Richard Galanti claimed the gold bars, sold exclusively online, are “typically gone within a few hours” of appearing on Costco’s website. There is a two-bar limit per member.

Financial expert: Costco’s 1-ounce gold bars are a ‘mug’s game’

The AP reported the one-ounce gold pieces, offered in two designs, were selling for just below $2,000 — slightly more than the current market price of gold, which was around $1,835 per ounce last October.

But Jason Royal, a principal writer and editor for the financial services company Bankrate, previously told MyNorthwest the gold bars are more of a novelty than an investment.

“You’re basically in the hole 10-12% as soon as you purchase,” Royal said. “The returns are a lot a lot more spotty than stocks, and you have to keep it safe.”

However, according to USA Today, Costco sold over $100 million in gold bars in a three-month period ending Nov. 26. The national outlet added the same trend is happening to the silver coins, which were sold out in March.

USA Today also reported that, according to Costco, the coins may be available at local warehouses at a lower price. Members can buy a maximum of five tubes of coins which are nonrefundable.

Contributing: Frank Sumrall, MyNorthwest

Julia Dallas is a content editor at MyNorthwest. You can read her stories here. Follow Julia on X, formerly known as Twitter, here and email her here.

In a LinkedIn post published over the weekend, Schultz said many people had reached out to him after Starbucks reported weaker-than-expected quarterly sales and earnings last week.

The Seattle coffee giant said revenue dropped 2% in the January-March period as store traffic slowed around the world. It was the first time since 2020 that the company saw a drop in quarterly revenue. Starbucks also lowered its sales and earnings guidance for its full fiscal year.

Schultz, who bought Starbucks in 1987, is credited with growing the company into the global behemoth it has become with nearly 39,000 stores worldwide. He has been the chairman emeritus of the company since last fall, when he stepped down from Starbucks’ board.

Schultz remains Starbucks’ largest individual shareholder, holding shares that were valued at $1.5 billion at the end of last year.

More on Starbucks: Original Pike Place location reopens after vandalism

In his post, Schultz said senior leaders – including board members – need to spend more time talking to baristas in the company’s stores.

“I have emphasized that the company’s fix needs to begin at home: U.S. operations are the primary reason for the company’s fall from grace,” he said. “The stores require a maniacal focus on the customer experience, through the eyes of a merchant. The answer does not lie in data, but in the stores.”

Laxman Narasimhan, who became Starbucks’ CEO last spring, has been working a half-day shift in Starbucks stores once a month.

At some points in his post, Schultz seemed to be questioning Narasimhan’s turnaround plans. In a conference call with investors last week, Narasimhan mentioned several new products he thinks will drive customers to stores later this year, including boba drinks, sugar-free options and the brand’s first energy beverage.

But Schultz said coffee is what differentiates Starbucks and reinforce the company’s premium positioning.

“The go-to-market strategy needs to be overhauled and elevated with coffee-forward innovation,” he said.

‘What’d you say?’: Starbucks attempts to tamp down the noise

Narasimhan did announce plans for coffee pop-up stores in the U.S. and elsewhere last month. Starbucks plans to use the stores to experiment with limited-edition coffee drinks, teach younger customers about coffee and learn about customers’ preferences.

Schultz also said the company should update its mobile ordering and payment platform to “once again make it the uplifting experience it was designed to be.” He didn’t specify the changes he thinks should be made. Narasimhan said last fall that Starbucks is accelerating the introduction of new digital features and trying to personalize the customer experience within its app.

“We always appreciate Howard’s perspective. The challenges and opportunities he highlights are the ones we are focused on. And like Howard, we are confident in Starbucks long-term success,” Starbucks said Monday in a statement.

Schultz has a history of stepping in when he see Starbucks struggling. He retired as CEO in 2000 and became the company’s chairman, then returned as CEO in 2008 when the company was dealing with the recession.

Schultz stepped down again in 2017 but returned to lead the company on a temporary basis in 2022. In 2023, he named Narasimhan, a former PepsiCo executive, as CEO. Schultz left Starbucks’ board last fall and became chairman emeritus.

Starbucks shares were flat Monday. The company’s stock price has fallen more than 20% since the start of this year.

The eight-year, $1.45 billion levy would fund transportation safety and maintenance in Seattle, according to a news release from the Office of the Mayor.

The news release states the proposal was composed following a public comment period and is “shaped by community input.”

“Over the last month, we’ve received feedback from thousands of Seattle residents who want a transportation system that is safe, connected, and well maintained — this proposal will help get us there,” Harrell said in the news release. “With a focus on the essential needs of our city and its residents, this levy proposal will deliver projects and improvements to keep people moving and to keep people safe. No matter your preferred method of transportation, these investments are designed to make trips safer, more reliable, and better connected, so every Seattleite can get where they need to go.”

Friday’s proposal asks for an additional $100 million. The current levy costs residents, with a median home with a tax-assessed value of $866,000, $24 per month. The proposed levy would be an additional $17 per month.

Harrell’s office said the extra funds are needed for sidewalk construction and repairs, enhanced pedestrian and bicyclist connectivity to light rail stations, transit access and reliability, bridge maintenance and long-term replacement planning, and maintenance and modernization of Seattle’s streets.

How would the sum of more than billion dollars be used?

The largest chunk of the $1.45 billion — $423 million — would go toward repaving main roads that carry the most buses, trucks and cars. It would also improve infrastructure for people walking, rolling, biking and taking transit.

Travel alert: Washington ferry prices have gone up amid wave of riders

The second largest amount, $221 million, would go to keeping the city’s bridges in working condition and preparing for future bridge projects.

Over $150 million would go to community-requested safety improvements to streets, sidewalks, intersections, and crossings to reduce traffic collisions, severe injuries and fatalities

Around $140 million would go to connecting people safely to transit hubs like the Link light rail and bus stops and lessening delays on bus routes. Another $135 million would go to building and preparing sidewalks, crossings and curb ramps.

Everything bike, from expanding protected bike lanes to connecting schools to bike paths, would get $114 million.

Nearly $70 million would be for activating public spaces with business districts and another $100 million would go to installing and upgrading traffic signals.

Reducing air pollution and creating sustainable transportation options would take $59 million.

Last, $25 million would go to supporting trucks delivering goods and $5 million would establish a Transportation Funding Task Force, along with increasing sidewalk repairs.

“After a month of consultation with the public, Mayor Harrell has made the transportation levy proposal even better with additional investments in walking, biking and transit,” said Seattle Department of Transportation (SDOT) Director Greg Spotts. “The revised proposal would give SDOT 17% more purchasing power to maintain our modernize our streets than the current levy to Move Seattle.”

Next steps for Seattle transportation levy

Next, Seattle City Council member Rob Saka will chair the Select Committee on the 2024 Transportation Levy. According to a news release from Saka’s office, the committee is made up of all nine council members tasked with reviewing and updating the mayor’s proposal and putting forth a final proposed levy package before voters this fall.

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The first meeting of the committee is Tuesday.

“We have an incredible opportunity right now to roll up our sleeves and build a better future for Seattle. Building and maintaining bridges, roads, sidewalks, bike lanes and buses may seem like the boring work of government, but few things shape the way we interact with our city and connect with each other more. We have a tremendous responsibility to get this right and deliver the everyday basics in an extraordinary way,” Saka said in the news release.

Once approved by the committee, the proposal will go to the council for a final vote. If approved, the levy will be on the ballot this November.

According to Harrell’s office, Seattle’s current transportation levy provides around 30% of SDOT’s budget and expires this year.

Julia Dallas is a content editor at MyNorthwest. You can read her stories here. Follow Julia on X, formerly known as Twitter, here and email her here.

The ruling, issued Wednesday, follows a complaint filed in 2022 by the National Labor Relations Board that accused Jassy of crossing the line during sit-down interviews in which he said that workers were better off without a union.

In the ruling, National Labor Relations Board Judge Brian D. Gee pointed to statements Amazon’s chief executive made on CNBC’s television program “Squawk Box,” and during two summits organized by Bloomberg News and The New York Times.

More on Amazon: Protests at headquarters object to use of fossil fuels in Oregon

Gee said predictions Jassy made about unionization changing the employee-employer relationship were lawful. But other statements about how employees would be less empowered under a union, “find it harder to get things done quickly and would be better off” without one ran afoul of federal labor law, the judge said.

In a prepared statement, Amazon spokesperson Mary Kate Paradis said the company strongly disagrees that “any part of these comments” were inappropriate and intends to appeal the ruling within the administrative law system.

“The decision reflects poorly on the state of free speech rights today, and we remain optimistic that we will be able to continue to engage in a reasonable discussion on these issues where all perspectives have an opportunity to be heard,” Paradis said.

Jassy’s comments came amid increased unionization efforts at Amazon following a historic victory by the Amazon Labor Union during a union representation vote at a warehouse in New York City. The company has continued to appeal the union’s win and refused to come to the bargaining table.

In his ruling, Gee advised Amazon to avoid “threatening its employees” with similar comments in the future and to post a notice in its facilities nationwide that signaled the company’s compliance with the judge’s finding.

A judge credited Zhao for taking responsibility for his wrongdoing but said he was troubled by the now-former CEO’s decision to ignore U.S. banking requirements that would have slowed the company’s explosive growth. The sentence was far less than the three years prosecutors had sought, but defense attorneys had asked that Zhao spend no time in prison.

“Despite wealth, power or status, no person — regardless of wealth — is immune from prosecution or above the laws of the United States,” U.S. District Judge Richard A. Jones told Zhao.

Zhao pleaded guilty in November to one count of failing to maintain an anti-money-laundering program and stepped down as Binance agreed to pay $4.3 billion to settle related allegations. U.S. officials said Zhao deliberately looked the other way as people conducted transactions that supported child sex abuse, the illegal drug trade and terrorism.

“I failed here,” Zhao told the court Tuesday. “I deeply regret my failure, and I am sorry.”

No one has ever been sentenced to prison time for similar violations of the Bank Secrecy Act, defense attorneys Mark Bartlett and William Burck told the judge. But prosecutors argued that if Zhao did not receive time in custody for the offense, no one would, rendering the law toothless.

Binance allowed more than 1.5 million virtual currency trades, totaling nearly $900 million, that violated U.S. sanctions, including ones involving Hamas’ al-Qassam Brigades, al-Qaeda and Iran.

Bartlett and Burck said there was no evidence Zhao personally knew of any specific transaction that would have been barred by U.S. regulations or sanctions. Also, they argued, the number of suspicious transactions Binance handled was a miniscule proportion for a company whose total transactions were about $500 million a day. And they noted that Zhao began making changes to make Binance a model of compliance with banking transparency regulations before stepping down.

In a letter to the court, Zhao wrote that there was “no excuse for my failure to establish the necessary compliance controls at Binance.”

“I wish I could change that part of Binance’s story. But under my direction, Binance has now implemented the most stringent anti-money laundering controls of any non-U.S. exchange, and those controls have been in place since 2022,” he added.

Previous coverage: Binance CEO pleads guilty to money laundering in Seattle federal court

Prosecutors said no one had ever violated the Bank Secrecy Act to the extent Zhao did.

“He says in hindsight he should have done a better job,” Justice Department lawyer Kevin Mosley told Jones. “This wasn’t a mistake. When Mr. Zhao violated the BSA he was well aware of the requirements.”

Zhao knew that Binance was required to institute anti-money-laundering protocols, but instead directed the company to disguise customers’ locations in the U.S. in an effort to avoid complying with U.S. law, prosecutors said.

Zhao, his legal team and family members left after Tuesday’s hearing without speaking to reporters.

The cryptocurrency industry has been marred by scandals and market meltdowns. Most recently. Nigeria has sought to try Binance and two of its executives on money laundering and tax evasion charges.

Zhao was perhaps best known as the chief rival to Sam Bankman-Fried, the founder of the FTX, which was the second-largest crypto exchange before it collapsed in 2022. Bankman-Fried was convicted last November of fraud for stealing at least $10 billion from customers and investors and sentenced to 25 years in prison.

Zhao and Bankman-Fried were originally friendly competitors in the industry, with Binance investing in FTX when Bankman-Fried launched the exchange in 2019. However, the relationship between the two deteriorated, culminating in Zhao announcing he was selling all of his cryptocurrency investments in FTX in early November 2022. FTX filed for bankruptcy a week later.

Zhao’s attorneys pointed to his willingness to come from the United Arab Emirates, where he and his family live, to the U.S. to plead guilty, despite the UAE’s lack of an extradition treaty with the U.S.

They also argued that he would not be safe in prison. Because he is not a U.S. citizen, he is ineligible for placement in a minimum security facility. Given his high-profile status and wealth, as well as Binance’s cooperation with U.S. law enforcement in certain investigations, he might be a target for violence in a medium security prison, they suggested.

The judge said he took that into account in sentencing Zhao to four months, instead of the five-month sentence recommended by U.S. Probation and Pretrial Services.

The combined companies say they now plan to sell 579 stores across several states for $2.9 billion, letting go of the most in the state of Washington: 124. That’s 20 more stores than their previous merger plan which the Federal Trade Commission (FTC) and the state of Washington are suing to stop.

The company tapped to buy the stores is C&S Wholesale Grocers, a New Hampshire-based company that includes the Piggly Wiggly Supermarkets chains as part of its portfolio.

Under the initial divestiture plan, announced in September, C&S had planned to purchase 413 stores for $1.9 billion.

Kroger, which would be the acquiring entity in the merger of the giant chains, would sell the Haggen banner. C&S would also license the Albertsons banner in California and Wyoming and the Safeway banner in Arizona and Colorado. C&S would also get access to some private-label brands in the stores. Under the proposal, C&S would keep all of the stores open and honor any labor agreements.

“We are confident this expanded divestiture package will provide the stores, supporting assets and expert operators needed to ensure these stores continue to successfully serve their communities for many generations to come,” C&S CEO Eric Winn said in a statement.

Ferguson has previously expressed fear about the merger

KIRO Newsradio has reached out to Washington State Attorney General Bob Ferguson to see if it’s a big enough move to allay his fears about the merger.

“If Kroger and Albertson’s merge, they will – simply put – dwarf the competition,” Ferguson said when he filed a lawsuit on behalf of the state in January. “Shoppers will have fewer choices and less competition, and that results in higher prices.”

Ferguson has claimed C&S is a small operation he predicts would be quickly overwhelmed by competition from the newly combined Kroger-Albertsons stores.

He compared it to when Albertsons merged with Safeway in 2015. Under a divestiture plan, they sold 146 stores to regional supermarket chain Haggen, which went bankrupt a year later.

The FTC also said the initial plan to divest 413 stores to C&S was “inadequate” and would give C&S a hodgepodge of unconnected stores and brands, leaving it ill-equipped to compete with a combined Kroger and Albertsons.

Kroger, Albertsons try to bolster their case

In a news release issued Monday, Kroger and Albertsons bolstered the case for C&S saying the companies’ divestiture package provides enough corporate and office infrastructure to ensure the company can operate the stores “competitively and cohesively.”

“Importantly,” the statement continued, “the updated divestiture plan continues to ensure no stores will close as a result of the merger and that all frontline associates will remain employed.”

Kroger and Albertsons first announced their proposed merger in October 2022. The companies have said they plan to close the deal in the first half of Kroger’s fiscal year.

Number of stores to be sold in the Kroger-C&S Wholesale plan

Contributing: The Associated Press; Steve Coogan, MyNorthwest

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