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Mayor Jailed on Sex Charges Will Relinquish Power

LOS ANGELES TIMES -- WATERBURY, CONN.

The mayor is in jail, accused of sex crimes involving two young girls.

Despite the severity of the charges, Philip A. Giordano for weeks has insisted he would be back at work any day. But in a deal cut Tuesday, the 38-year-old Republican agreed to relinquish his authority and not return to City Hall.

`He’s only mayor to the extent that he calls himself mayor to his friends in the penitentiary,” said board of Aldermen chief Sam S.G. Caligiuri, who has temporarily taken over Giordano’s job duties.

Exactly where that penitentiary is is not known. Giordano was whisked away late last month after federal agents arrested him for allegedly enticing 9- and 10-year-old cousins to perform sex acts.

He already was under surveillance in connection with a corruption investigation when the FBI charged him with using an ``interstate facility” -- apparently his computer or cellular telephone -- in the course of committing sex crimes.

Details of the allegations have not been revealed; a federal judge has denied Giordano bail and is keeping a tight lid on the case. But around here, the crimes are described asheinous, “off the radar,” in the view of Gov. John Rowland, a Waterbury native and fellow Republican.

Crooked officials are nothing new in financially troubled Waterbury, where Giordano is the third consecutive mayor to have trouble with the law. But the nature of the latest scandal has set this old mill town reeling.

``I think the whole city -- everybody here, especially parents -- is having trouble believing this,” Caligiuri said. ``Even his harshest enemies, and he has many, are surprised.”

If convicted, Giordano faces a minimum fine of $250,000 and up to 10 years in prison.

State officials also are considering action against the married father of three. And a Waterbury attorney representing the girls has said he will sue both Giordano and the city.

But, lawyer Gerald Harmon acknowledged, it might be hard to collect much from a city that is nearly bankrupt.

Lucent Pulls Plug On Acquisition

THE WASHINGTON POST -- WASHINGTON

Lucent Technologies Inc. shocked Washington’s technology community last year when it paid $4.75 billion for an obscure fiber-optics firm in Herndon, Va. -- a large sum even by the standards of the tech bubble.

Just 15 months later, that company, Chromatis Networks Inc., is gone. Lucent Monday ceased production on its one product and laid off its 150 employees.

So ended Lucent’s expensive foray into the Washington optical networking business. It paid nearly $6 billion to buy two young firms here. The other was Yurie Systems Inc. of Landover, Md., which Lucent bought with $1.1 billion in cash in 1998.

Both companies had technologies that promised to make the Internet faster. Now, both have been largely dismantled in Lucent’s drive to regain profitability.

Lucent informed Chromatis’s two customers and its employees Monday evening it would halt manufacturing immediately and close its doors in coming months. The cost of the acquisition will be absorbed as part of the $7 billion to $9 billion in write downs the company plans to log during its fourth quarter, said Frank Briamonte, a spokesman for Lucent.

The majority of the employees work out of Chromatis’s Israeli office, Briamonte said, declining to comment how many employees remain in the Herndon office.