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New Merger Advisor For LBM
Lonnie Schield. former c.e.o. of Terry Lumber, has joined rvith trvo private equity and investment banking professionals to form a mergers and acquisitions advisory firm specializing in the U.S. building materials industry.
Based in Los Angeles, Ca.. Building Materials Partners, LLC advises buyers and sellers of building materials companies with $10 million to $500 million in revenues. The firm assists owners in exploring exit alternatives and confidentially selling their businesses. It also works with industry and financial buyers to help locate suitable acquisitions and/or management-led buyouts.
Schield retired from Terry Lumber after the l4-unit chain rvas acquired by Stock Building Supply in 2000. Partner Matt Ogden had been rvith Southeast Acquisition Partners. LLC. and Alex Hodgkin rvith Headwaters MB LLC and Salomon Smith Barney.
BMP will serve all channels of the industry, including dealers, rvholesalers, component plants, manufacturers, sarvmills, builders, contractors and service providers.
"We believe there is currently a void in transaction advisory services for orvners of middle-market building materials companies." said Ogden. "Wall Street investment banks have traditionally underserved this market by focusing on only the largest transactions. rvhile business brokers historically haven't had the industry expertise and netrvork of industry buyer contacts that we believe is critical in achieving business owners' objectives in a sale."
Ecoterrorist Suspects Caught
Three alleged ecoterrorists have been arrested and charged rvith setting fires that caused nearly $l million of dama_9e at the offices of three Oregon timber companies.
"We intend to aggressively investigate and prosecute ecoterrorism here in Oregon," said U.S. Attorney Karin J. Immergut.
Trvo of the suspects. Stanislas Meyerhoff. 28. and Daniel Gerard McGorvan, 31. rvere charged rvith a Jan. 2001 fire at Superior Lumber Co.. Glendale, and a May 2001 fire in the offices and a truck shop at Jefferson Poplar Farm. Clatskanie. If convicted. both men face life in prison.
Sarah Kendall Harvey. 28. rvas charged in a Dec. 1998 blaze at U.S.
Forest Industries, Medford. and could receive up to 20 years if convicted. The Earth Liberation Front took responsibility for all three arracks.

"I'm exceptionally happy if. in fact. they have found somebody rvho set the fire." said Jerry Bramrvell. retired president of the norv defunct U.S. Forest Industries. "We cannot allotv that kind of behavior and acrion to dictate what go€s on in our society."
Although the company's assets rvere later liquidated and sold. said Bramrvell. the decision had nothing to do rvith the fire.
"My hope is that these individuals are prosecuted to the full extent of the larv and face the stiffest penalties if convicted." said Steve Srvanson. president of Srvanson Group. parent of Superior Lumber. "Arson is one of the most serious crimes out there. lt's only a matter of time until innocent people are injured or killed by ecoterrorists."
Though all of the fires occurred at night and no one rvas hurt. Superior's 6.000-sq. ft. office building rvas nearly destroyed. "Primarily because of the diligence and sacrifice of the staff. they kept rvorking." said Srvanson. "They literally rvorked out of their cars for a rvhile."
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Lumber Exec Pleads Guilty
After fighting the charges for four years, the owner of Petaluma, Ca.based Golden State Lumber has pleaded guilty to five counts of tax evasion for under-reporting more than $l million in income between 1996 and 2fiX).

"l will not try and justify my actions," said Lee Nobmann, 55, owner and c.e.o. "The fact is. I screwed up and intend to take full responsibility." Under an agreement reached with federal prosecutors, he faces up to 21 months in prison and must pay $330.000 in taxes. interest and penalties. Sentencing is scheduled for April.
Nobmann told a U.S. District Court judge in San Francisco that he allowed more than $910,000 of personal expenses to be paid by Golden State and deducted as the company's business expenses. The charges included fishing trips to Alaska, a cruise to Turkey, payments on his $3.6 million Cessna jet, legal bills for his niece, credit card bills for his rvife.
a sound system for his home. and tennis lessons for his son.
Nobmann also admitted depositing rebate checks from vendors directly into his personal bank account, rvithout reporting them as either personal or business income.
"This case is an example of somebody using the company as a piggy bank." said Mark Lessler. special agent rvith the IRS. "This rvas not a mistake."
The IRS rvas alerted by Jim O'Brien. Golden State's former corporate financial officer. In a court statement. O'Brien said he rvas fired after questioning the company's practices and making a $200,000 quarterly tax payment against Nobmann's rvishes. In Oct. 2001. IRS agents began their investigation.
Golden State Lumber. which rvas founded by Nobmann's father and has four Bay Area locations, does more than $400 million in sales annually. Despite Nobmann's legal challenges, operations rvill continue as normal.