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Archive for December, 2011

STORMTRACK 3: Severe weather signals a return to winter

Wednesday, December 7th, 2011

SOUTHEASTERN NC (WWAY)– A strong cold front produced a line of severe thunderstorms across eastern North Carolina Wednesday evening. Storm winds in excess of 45 mph brought down trees in several counties, including Bladen and Robeson. Spotty power outages were reported all the way to the coast. Rain transitioned into snowfall in the North Carolina mountains, where an inch is possible in higher elevations.

The threat of severe weather will diminish later Wednesday night as the cold front slides offshore. Temperatures will drop quickly behind the front, with highs in the 50’s and lows in the 30’s for the rest of the week.

Chief Meteorologist Jerry Jackson

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Burgaw’s Christmas parade is Saturday

Wednesday, December 7th, 2011

Burgaw celebrates its annual Christmas Parade at 6:30 p.m. Saturday, Dec. 10.

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New owners wait for ABC permit to reopen bars downtown

Wednesday, December 7th, 2011

WILMINGTON, NC (WWAY) — Two downtown Wilmington bars are in the process of opening back up, but what they need the most they still don’t have. Orton’s Pool Hall and the former Rox night club are in the middle of remodeling, but neither of has a liquor license from the state.

The words new bar or new nightclub grab the attention of many in downtown Wilmington. In the past year the city has made it clear it wants to limit the number of alcohol permits downtown by setting new policies and procedures. One rule is that anyone applying for a liquor permit must undergo a review by the city’s ABC Policy Review Committee. The committee does not make a decision on if a business gets a permit, but it does make a recommendation to the state ABC Board, which makes the decision.

Two former downtown businesses are looking to reopen and will soon go through that review process: the Rox nightclub, which the new owner is renaming the Brikhouse, and the historic Orton’s Pool Hall, which will be known as Orton’s Underground.

“We have just been working on bringing it back to its luster and glory,” Orton’s manager Rich Anderson said.

Orton’s Underground includes Orton’s Pool Room and Longstreet’s Top Shelf Bar. Despite the recent troubles of other businesses when it comes to alcohol permits, Anderson says orton’s is in compliance with the city.

“We shouldn’t have any problem,” he said. “A lot of things are not done right now, but it’s all coming together in the next week or so. We’re not changing the use down here, so it should be good to go in a couple of weeks.”

Currently the city limits the number of permits downtown for new businesses, but but both Orton’s and the Brikhouse are not viewed as new because they are opening up within a year since they closed and will essentially be used for the same purpose.

Eddie Peabody, who is trying to open up the Brikhouse, says his business will be a live music venue that will also play top 40 dance music, bringing in a different crowd then Rox.

Peabody is scheduled for a review of his alcohol permit application Friday. Orton’s hopes to meet with the committee soon as well. Both businesses hope to be open for business by New Year’s Eve.

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ONLY ON 3: Nursing home running without water

Wednesday, December 7th, 2011

NEW HANOVER COUNTY, NC (WWAY) — We discovered a nursing home with no running water when a concerned family member called us and told us about problems at a facility in New Hanover County.

Christopher Rackley’s father lives at the Hermitage House in Castle Hayne. During a recent visit, Rackley and his girlfriend noticed something unusual.

“When me and her were leaving,” he said, “we seen them carrying jugs and stuff, so me and her got suspicious.”

He soon found out the nursing home did not have running water.

“My daddy said they had cereal, and that’s all they had for breakfast ’cause of the issue they’ve got going out there with no running water,” Rackley said.

Management confirms the water is turned off. In fact, it’s been off for a little more than a week. That’s because during routine tests they found bacteria in the water.

Alan Osborne with Meridian Senior Living, the management company for Hermitage House, says they immediately turned off the water and began work to get rid of the bacteria, but it’s a slow process.

“You put chemicals in the system. They have to remain in there 24 hours, then you test it, and if it tests clean after the initial test you have to wait 18 hours, and you have to run a second test,” Osborne said.

The second test still showed some bacteria, so the process had to start over again. In the meantime the Hermitage House is bringing in five gallon jugs of water for cooking, cleaning and drinking.

“We have been told it’s OK to shower, but we haven’t done that. We’ve actually taken residents to another community nearby for showers,” Osborne said.

Rackley says that’s inconvenient. Osborne agrees.

“I’m sure the residents are getting quite impatient to have running water in the rooms back, and we understand that we just want to make sure it’s safe running water,” Osborne said.

The goal is to have the water back on by the end of the week.

We contacted the New Hanover County Health Department. It has been kept up-to-date about what’s going on. In fact, it plans to visit the Hermitage House tomorrow for another update.

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Construction company owner pleads guilty to mortgage fraud scheme

Wednesday, December 7th, 2011

RALEIGH, NC (NEWS RELEASE) – United States Attorney Thomas G. Walker announced
that in federal court today DANIEL P. OSTBY, 41, pled guilty
before United State District Judge Terrence W. Boyle to wire fraud,
in violation of Title 18, United States Code, Section 1343, and
money laundering, in violation of Title 18, United States Code,
Section 1956(a)(1)((A)(i).

According to the Criminal Information filed on October 28,
2011, OSTBY and his co-defendant, Curt Vanderzee, formed DC
Development of North Carolina, LLC, which held itself out as
providing construction services. OSTBY and Vanderzee developed a
scheme to “flip” houses, in which they would buy real property,
improve the property by building on it, and then quickly sell the
property for a profit. OSTBY also solicited friends and
acquaintances to go into business with him by telling them they
could “flip” houses and make $20,000.00 to $40,000.00 per property.
Over 17 business-LLC’s were formed with family members and

The investigation revealed that once the businesses were
established, OSTBY took the business partners to an individual who
“specialized” in obtaining credit for start up businesses. Once
the business credit cards were obtained, cash advances were taken
and used to open a business LLC bank account. OSTBY told the
business partners that they could draw a monthly salary, and pay
personal expenses with the account to help build up their credit.
The money used to pay for those items were either credit card
withrawals or lines of credit obtained at various banks since the
businesses had no source of income.

From 2007 to January, 2009, OSTBY and Vanderzee charged over
$1,025,000.00 on the business credit cards, which were all linked
to various businesses either owned by OSTBY and/or Vanderzee or
linked to other businesses to which they had some financial
interest. Once the money was received, they would funnel the money
back to the businesses bank accounts and then use the money to pay
their monthly salaries, personal expenses, the minimum monthly
credit card payments, and in many instances fund the down payments
of lots and properties being purchased. Additionally, OSTBY and
Vanderzee submitted mortgage applications to purchase real estate,
which had misrepresentations of their employment, monthly income,
and assets. The financial institutions, relying on the information
submitted, approved the applications, and either mailed or wired
the funds to the closing real estate attorney’s bank account. It
is estimated that OSTBY and Vanderzee committed over $3.7 million
in mail and wire fraud.

Acting Special Agent in Charge Kay B. Jernigan stated, “IRSCriminal
Investigation will continue to use the full resources of
our agency to expose the perpetrators and vindicate the victims of
complex financial frauds.”

The maximum penalty for wire fraud is up to 30 years’
imprisonment. The maximum penalty for money laundering is up to 20
years’ imprisonment.

Vanderzee was charged in a Criminal Information on August 30,
2011. He pled guilty on September 29, 2011. Sentencing is
currently set for January 3, 2012.

Investigation of this case was conducted by the Internal
Revenue Service and the United States Secret Service. Assistant
United States Attorney Felice McConnell Corpening is serving as
prosecutor for the government.

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