A longtime Ann Arbor IT firm overstated its earnings by nearly $130 million over the course of four years due to accounting fraud perpetrated by one of its former executives, according to federal documents released today.

The digital archiving firm formerly known as ProQuest and one of its former executives were charged with accounting fraud today.

The U.S. Securities and Exchange Commission announced it has charged ProQuest, now called Voyager Learning Co., and a former ProQuest executive with accounting violations that caused the company to lose $437 million in market capitalization from February 2006 to April 2006 when the news was first revealed.

The ex-executive, Scott Hirth, served as vice president of finance and chief financial officer for ProQuest's information and learning division. He was accused of artificially inflating ProQuest's financial figures from at least 2001 to 2005 by altering spreadsheets to include false information about the company's performance.

Ann Arbor is in the running to land K-Dow, the planned joint venture between a Kuwaiti company and Dow Chemical Co. that would employ 800 people in its headquarters, according to local real estate sources.

Officials from Midland-based Dow Chemical [NYSE:DOW] were in town July 17 looking at several sites, including one on South State Street, one near Dixboro Road and the Pfizer facility near University of Michigan's North Campus, sources said.

Local brokers said the company was looking for between 150,000 and 200,000 square feet of office space. K-Dow is also reportedly considering a Farmington Hills site.

First Martin Corp. is seeking a speculative tax abatement on its building at 201 Depot St. in order to make it more attractive to potential tenants.

The Ann Arbor City Council is to set a public hearing on the abatement proposal on Monday. The proposed date for the hearing is Aug. 7.

The Saline-based food company that produces Flatout bread for all the major retailers in the country is spending $1.1 million to upgrade its manufacturing capabilities.

The firm, legally called Pattco Inc. but typically known as Flatout, is adding equipment to improve its automated processing ability, said co-founder Mike Marsh.

The company tonight is requesting a five-year tax abatement from the city of Saline for an investment totaling $1,110,732.

Eight Michigan companies landed a total of $51.41 million in venture capital in the second quarter of 2008, but that's still only good for 26th place nationally.

Venture capitalists invested $7.4 billion in the United States in the second quarter, according to the latest quarterly report from PricewaterhouseCoopers and the National Venture Capital Association, based on data provided by Thomson Reuters.

At that rate, the companies said, VC investment is on pace to about equal last year's $30.7 billion annual tally.

Jim Gartin is leaving his post as business development director at Ann Arbor SPARK to lead the Lenawee Economic Development Corp. in Adrian.

Gartin has been with SPARK, the economic development agency for Ann Arbor, since August 2006.

Gartin is expected to start in Adrian in mid-August. He has also worked for Ypsilanti Township.

Liberty Square, the building formerly known as Tally Hall adjacent to a city parking structure on Liberty Street, will likely dodge the wrecking ball as the McKinley real estate company rethinks its redevelopment plan.

The company, which redeveloped the corner of Liberty and Division just a few buildings away into its headquarters, had received city council approval in January to tear down part of the Liberty Square building and put up a new, two-story structure.

Six Michigan health systems were named to the 100 Most Wired list in the July issue of Hospitals & Health Networks magazine.

The Most Wired Survey and Benchmarking Study is in its 10th year of analyzing and benchmarking of health care information technology. The study included 556 completed surveys, which represented 1,327 hospitals.

Robert RameyMartin Bouma of Bouma Group.

"You sort of go back to Real Estate 101," said Sharon Snyder, owner of Prudential Snyder & Co. "Every agent here is probably working harder, and always trying to regroup and work smarter."

Paula Gardner is editor of Michigan Business Review in Ann Arbor and Oakland.

This deal could be the first significant tenant for the soon-to-be-vacated Ann Arbor campus, home to 2 million square feet of offices and highly specialized labs.

I don't speculate lightly - and I'm not trying to foist false hopes onto a state that, this week, is reeling from the latest sign that we don't even know how bad it will get for General Motors Corp. through 2009.

However, some of the hints released Tuesday about the Dow deal are just too tempting to pass up a little round of "what ifs?" for Ann Arbor's key piece of redevelopment potential.

Robert RameySkip Cerier of Schoolpictures.com at the former Ave Maria site.

Skip Cerier, owner of Schoolpictures.com, purchased the school on Forest Street that had most recently been part of Ave Maria University, before it moved to Florida in 2007. The deal closed Monday.

Robert RameyAmerican Soy Products in Saline.

The Saline-based company expects the new equipment would increase its annual production capacity by about 56 percent, said President Ron Roller.

Backers of a new national journal for foundations and philanthropists aim to create greater transparency and sharing of best practices.

The Foundation Review, to be published quarterly in print and online (www.foundationreview.org) beginning in December, will offer case studies on projects undertaken by foundations nationwide that submit peer-reviewed papers.

Robert RameyMichael Appel and Celeste Hawkins at Parkhurst Apartments in Ann Arbor.

"We'd like to have a sustainable organization - a stronger organization - by combining the two, and combining the portfolios," said Tim Bracco, president of the WAHC board.

Bob Gibbs

The Birmingham-based, nationally recognized retail planner and consultant was involved in the Calthorpe planning process, Domino's Farms and work on the University of Michigan's North Campus. He's preparing to visit Harvard University as a featured speaker and program instructor for a three-day workshop at its Graduate School of Design.

Gibbs spoke about retail development in Michigan, Michigan's downtowns and the impact of gas prices.