Ex-KMart CEO ordered to pay up

It’s the season for restitution, I guess. (Better than the Couch of Restitution!)

DETROIT (AP) — The former head of Kmart Corp. has been ordered to pay more than $10 million for misleading investors about the retailer’s health before bankruptcy in 2002.

U.S. Magistrate Judge Steven Pepe (Payp) released a 70-page decision Thursday, nearly nine months after Charles Conaway was found liable in a civil trial in Michigan.

The case was a fresh look at Conaway’s brief tenure at Kmart and the desperate scramble to keep the company afloat before one of the largest bankruptcies in retail history.

The Securities and Exchange Commission had accused Conaway of failing to disclose that Kmart was delaying payments to suppliers to save cash.

Conaway will appeal the jury’s verdict and the financial penalties.

Attorney suspended over clients’ sex allegations

The Detroit News is reporting:

The Attorney Discipline Board has suspended an 83-year-old attorney after he allegedly asked his female clients to work off their legal fees by performing sex acts on his “couch of restitution.”

The board suspended the St. Clair Shores attorney, Murdoch Hertzog, for 180 days on Nov. 23 after three former clients testified he told them he would forgive or discount their legal bills if they engaged in the acts.

Hertzog denied the allegations in an interview Tuesday, saying the clients made up the stories. He cited his age and lack of sexual vigor as evidence the allegations are absurd.