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Byline: - Staff and Wire Services

State says firms deceived seniors

State officials on Thursday sued several financial planning firms and their executives for more than $110 million, accusing them of bilking thousands of elderly Californians by conning them into making sometimes ill-advised investments.

The firms named as defendants in the lawsuit, filed in Los Angeles Superior Court, are Woodland Hills-based Family First Advanced Estate Planning, Family First Insurance Services, American Investors Life Insurance Co., Group Legal Services Inc. and attorney Thomas R. Lee of West Hills.

The lawsuit, brought by the offices of Attorney General Bill Lockyer and Insurance Commissioner John Garamendi, contends that the defendants engaged in unlawful business practices, fraud and deception in a scheme to lure elderly Californians into buying living trusts they didn't really need. None of the defendants was available for comment.

Consortium gives hospital millions

MISSION HILLS - A consortium of business and charitable foundations joined to give Providence Holy Cross Medical Center more than $2 million, the hospital announced Thursday.

Browning-Ferris Industries, Sigue Corp., Health Net of California and the Ahmanson, Bill Hannon and Ralph M. Parsons foundations all chipped in for the campaign to expand the hospital's 28-year-old trauma center.

GM issues recalls for safety defects

DETROIT - General Motors Corp. is recalling nearly 200,000 vehicles because of various safety defects, federal regulators said Thursday.

The largest recall is of 155,465 pickups, vans and sport utility vehicles - including the Hummer H2 - because of possible brake malfunctions, the automaker and federal safety regulators said.

All of the affected vehicles are from the 2004 and 2005 model years and have Bosch hydro-boost brake assemblies. They are the Chevrolet Avalanche, Express, Silverado and Suburban; the GMC Savana, Sierra and Yukon XL; two commercial trucks, the GMC Topkick and Chevrolet Kodiak; and the Hummer H2, according to the National Highway Traffic Safety Administration.

In addition, GM is recalling 19,924 Cadillac XLR coupes, SRX SUVs and Pontiac Grand Prix sedans from the 2004 model year because the accelerator pedal might not work properly in extremely cold temperatures, requiring more braking.

GM also is recalling 17,815 Buick Rainiers, Chevrolet TrailBlazers, GMC Envoys and Isuzu Ascenders from the 2005 model years because the windshield isn't properly fitted and could fall out in a crash.

Dealers will make free repairs, the NHTSA said.

30-year mortgage rates decline again

WASHINGTON - Rates on 30-year mortgages fell for a sixth consecutive week as lower-than-expected employment gains helped keep the lid on inflation worries.

Freddie Mac's weekly survey of mortgage rates released Thursday showed that rates on 30-year, fixed-rate mortgages averaged 5.57 percent for the week ending Feb. 10, down from 5.63 percent last week.

Rates on 15-year, fixed-rate mortgages, a popular option for refinancing, fell to 5.10 percent, down from 5.14 percent the previous week. Rates on one-year, adjustable-rate mortgages dipped to 4.11 percent, down from 4.23 percent last week.

Barbecue lighters may be fire hazard

WASHINGTON - Arett Sales Corp. of New Jersey is recalling about 2 million multipurpose barbecue lighters because they fail to meet federal standards for child-resistant mechanisms, so they could pose a fire hazard, the Consumer Product Safety Commission said Thursday.

The lighters, marketed under the brand name Kitchen Works, were sold at Dollar stores nationwide from January 2001 through July 2004 for about $1.

Consumers should stop using the lighters immediately and return them to the place of purchase for a full refund. Lighters should not be incinerated or punctured. Consumers can call ASC at [phone] for more information.

Aetna profits up 22% for quarter

HARTFORD, Conn. - Health insurance giant Aetna Inc. reported on Thursday a 22 percent rise in fourth-quarter profits from a year ago, citing increased premiums and fees. It boosted its forecast for the year and its shares rose more than 4 percent.

Aetna said net income rose to $300.7 million, or $1.95 per share, in the last three months of 2004 from $249.5 million, or $1.56 per share, during the same period a year earlier.