Nasdaq Plans to Delist Fog Cutter

Nasdaq has notified Fog Cutter Capital Group, Portland, Ore., of its intention to delist the company effective July 29, an action that follows an agreement by Fog Cutter with its convicted chief executive officer, Andrew Wiederhorn, the company has reported.Fog Cutter said it will challenge the delisting decision. Mr. Wiederhorn became embroiled in a controversy related to the activities of Wilshire Credit Corp., a Portland company he owned in partnership with Lawrence Mendelsohn that traded in debt-related investments, Fog Cutter said. That company became insolvent following the Russian crisis of 1998, and on June 3, 2004, Mr. Wiederhorn pleaded guilty to two felony violations relating to its activities and received an 18-month prison term in addition to a monetary penalty. Fog Cutter then entered into a leave-of-absence agreement to prevent adverse consequences to the company. If Mr. Wiederhorn leaves his position as CEO and chairman of Fog Cutter, the minority shareholders of George Elkins Mortgage Banking, a commercial mortgage banker and broker, will have the right to buy FogCutter's 51% stake in George Elkins at a "significant" discount to its current market value, Fog Cutter said.