Economy Briefs

NEW YORK

Facebook hires Gowalla team; will phase it out

NEW YORK — Facebook has hired the team behind Gowalla, the location service that lets people share where they are using their mobile phones.

Gowalla started out in 2009 as a way for people to share their location with friends and strangers by “checking in.” Now, Facebook will wind down the service, as it often does when buying a startup to hire its talent.

Financial terms were not given. Gowalla co-founder Josh Williams says in a blog post that Gowalla will join Facebook in California.

Facebook says Mr. Williams, co-founder Scott Raymond and others at Gowalla will move to Facebook in January. Gowalla is currently headquartered in Austin, Texas. Facebook did not acquire the Gowalla service or technology.

MASSACHUSETTS

Hedge fund founder reports to prison

DEVENS — The hedge fund founder handed the longest prison term ever given for insider trading has reported to a federal facility in Massachusetts to begin serving his 11-year sentence.

Raj Rajaratnam reported to the Federal Medical Center in Devens on Monday, U.S. Bureau of Prisons spokeswoman Traci Billingsley said.

The 54-year-old Sri Lanka native and one-time billionaire lost his last-minute effort last week to get a federal appeals court to let him remain free pending appeal. He was convicted this year of trading on inside information from 2003 through 2009. Prosecutors say he made more than $70 million in illegal profits.

He had asked for leniency because of health problems.

The prosecution of the insider trading case resulted in the convictions of more than two dozen people.

MICHIGAN

Subaru, Honda recall car due to brake issue

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