May 7, 2002

Arthur Andersen agreed again to pay $217 million to compensate investors in fraudulent Arizona Baptist Foundation charity whose financial statements Andersen certified, even after former employees of charity said fraud was involved; it is unclear that all money will be paid, given perilous condition of accounting firm, but $11.2 million was paid and Andersen agreed to schedule by which it is to pay $10 million per month through October, when balance will be due; agrees to give up its license to work in Arizona if it does not meet its obligations; Jay Ozer, Andersen partner in charge of foundation audit, and Ann McGrath, manager of audit, will give up their licenses to practice accounting in Arizona; they will not be held individually liable for any of damages (M)

Manhattan Supreme Court Justice Lucindo Suarez issues order that would more than double hourly rate paid to private lawyers assigned to represent poor in New York City courts; lawyers have long sought to raise fees, which are among lowest in nation; under order, lawyers would be paid $90 per hour for work in and out of court; fees are currently $40 for courtroom work and $25 for out-of-court work (M)

Preview of trial of Michael Skakel on charges he killed Greenwich, Conn, neighbor Martha Moxley in 1975 when they were teenagers; case reviewed; photo (M)

Article on new details about FBI's pursuit of Albert Einstein contained in new book The Einstein File: J Edgar Hoover's Secret War Against the World's Most Famous Scientist by Fred Jerome; book, to be published this month, is result of Jerome's successful suit against government to obtain less censored version of FBI file; chronology; photos (L)

Man who investigators believe used alias escapes from Bronx police station interrogation room in latest embarrassing episode of prisoner escape from authorities in last several weeks; subject was to be questioned in string of sexual attacks in Manhattan, Bronx and Queens (M)

Some Wall Street firms have advised securities regulators investigating possible conflicts of interest among stock analysts that they have not retained e-mail messages as required by law; Federal securities laws require brokerage firms to retain electronic mail relating to brokerage firm's overall business for three years; e-mail messages are being sought by investigators for National Association of Securities Dealers Regulation, nation's largest regulator of Wall Street firms (M)

Recording-breaking $115 million weekend for Columbia Pictures' Spider-Man film leaves question whether it was aberration or sign of more blockblusters to come; fundamental changes in movie theater business--particularly rise in huge megaplexes that allow films to be shown on half-dozen or more screens--have played central role in explosion of big opening weekends in recent years; Spider-Man opened on 7,500 screens; everyone is looking expectedly ahead to May 16 opening of Star Wars: Episode II--Attack of the Clones, film that most had expected to be summer's biggest hit; officials at Lucasfilm say that writer-director George Lucas, who is picky about where his movies are shown, does not intend to open his latest Star Wars installment on as many as 7,500-plus screens that Spider-Man occupied last weekend; chart; photo (M)

Telefonica Moviles becomes Mexico's second-largest cellular phone provider after buying 65 percent of Pegaso, Mexican wireless unit of Leap Wireless International, for $87 million; Pegaso will retain its 35 percent stake, while Sprint Corp, Leap Wireless and Qualcomm sell their shares (S)

Pim Fortuyn, maverick right-wing populist and leading candidate in upcoming national elections in Netherlands, is shot and killed by gunman in parking lot of radio station in town of Hilversun, where he had given interview; police arrest unidentified 33-year-old Dutch citizen, who reportedly confesses; murder deeply stuns nation that sees itself as peaceful and egalitarian; raises specter of violence stalking European politics; Prime Wim Kok condemns murder in deeply emotional speech to nation; calls it tragedy not only for nation, but for its democracy; Fortuyn's rise in Dutch politics discussed; former sociology professor wanted to become country's first gay prime minister; carried same strong anti-immigrant message that has propelled resurgent far right to political triumphs elsewhere in Europe; recently stunned Dutch political establishment by winning power in Rotterdam, country's second largest city; public opinion polls predicted he would win one-fifth of vote in May 15 elections, and that his group would have been crucial to formation of next government; map; photo (M)

Harvey Araton Sports of The Times column contends that late Croatian New Jersey Nets player Drazen Petrovic was among first foreigners to play in NBA;; is nominated to Basketball Hall of Fame nine years after dying in car crash in Germany; photo (M)

Defense Sec Donald H Rumsfeld will cancel Army's $11 billion Crusader artillery system without further review, setting stage for showdown with weapon's influential supporters in Congress and embattled Army Sec Thomas E White, who fought to save it; lawmakers say mobile artillery vehicle that would shoot 10 155-millimeter artillery shells per minute up to 31 miles would provide three times firepower of current Paladin system and could do it further and faster with one-half of airlift requirement; proponents say Army must have dedicated artillery firepower, ready around the clock and in all weather; opponents say military can provide more efficient fire support on battlefield by using precision-guided bombs or artillery fire from flying gunships like AC-130; say Crusader is too heavy at 40 tons to be sent quickly to hot spots; some Pentagon officials suggest accusations that Army officials inappropriately lobbied Congress after learning week ago of Rumsfeld's intentions could provide pretext for pushing Sec White, former Enron executive, out of job; criticisms of him by consumer advocates and lawmakers for not disclosing holdings of Enron and for having extensive contacts with Enron executives after becoming Army Sec in May 2001 noted; critics and backers of program say issue underscores Rumsfeld's efforts to bend individual armed services to his will by enforcing his priorities on weapons purchases; photo; map (M)

Class-action antitrust lawsuit will challenge computerized program that matches medical residents with teaching hospitals; charges defendants, including seven medical organizations and more than 1,000 private hospitals, with using program to keep residents' wages low and hours long; could place enormous financial liability on nation's health care system and force it to change way generations of doctors have been trained; more than 80 percent of first-year residency positions are offered exclusively through National Resident Matching Program, which bases matches on ranked lists submitted by hospitals and approximately 15,000 students; both sides agree in advance to accept match with no room for negotiations about wages, hours or other terms of employment; almost all first-year residents make less than $40,000 per year and often work 100-hour weeks; photo (M)