Wespac Financial Corp., Newport Beach, said Friday it has paid back investors the $5.25 million that two of the company's trust accounts lost through government securities transactions in 1984.
Losses included $3.75 million in principal and $1.5 million in interest. As sponsor of the two trusts--Wespac Investors Trusts II and III--Wespac Financial Corp. contributed $3.75 million in cash in January, 1985. Also, at the request of the trusts, Wespac committed two irrevocable letters of credit worth $1.5 million, which can be drawn by the trusts until Dec. 31, 1985.
Dorren Beckham, Wespac's marketing coordinator, also said Friday that in mid-April, the company will open a new trust program, Wespac IV. Shares in Wespac IV will cost $10 each, with minimum investments of $1,000, she said.
Wespac has refused to identify the brokerage from which the two money-losing trusts were purchased. Beckham said Wespac was not immediately informed of the losses by the brokerage, but it had "immediately terminated" investments with the firm when the losses were discovered last year.
Luther Medical Products Inc., Santa Ana, has agreed to test a new catheter material produced by an unidentified research company. Luther, which markets catheters using a patented insertion technology, said the new material under development would provide it with technology needed to enter a broader sales market.
Luther said projections of the financial impact of the agreement will not be available until the company completes its evaluation.
Covington Technologies, a Fullerton maker of pre-fabricated housing, will be one of the 99 companies added to the National Market System of the National Assn. of Securities Dealers, beginning Tuesday. The National Market System offers up-to-the-minute reports of trading in certain over-the-counter shares.