Peter O'Toole and Bonnie Dumanis seemed to have opened the Public Integrity Unit for the sole benefit of Cheryl Cox, going after Cox's opponents for the flimsiest of reasons. Money spend on defending public employees has never bothered Cheryl Cox. She spent huge amounts at Chula Vista Elementary School District.
Of course, at CVESD Cheryl was in charge of deciding who would be attacked, too. She was sort of a two-for-one deal: Bonnie Dumanis and Cheryl Cox wrapped up in one package. Castle Park Elementary still hasn't recovered from Cox's illegal actions and her expensive payments to lawyer to help her get away with it.
San Diego Union Tribune
City won't ask DA to reimburse legal bills
By Tanya Sierra
October 8, 2008
CHULA VISTA – Chula Vista officials won't ask the district attorney to reimburse the city $609,000 for legal bills one councilman said are from a “fishing expedition” that caught nothing.
The motion to ask for reimbursement failed on a 2-2 vote, after a heated discussion at last night's City Council meeting. Councilman John McCann was absent. Mayor Cheryl Cox and Councilman Jerry Rindone voted against requesting a refund, and Councilmen Rudy Ramirez and Steve Castaneda voted for it.
Reached Monday, McCann – who did not indicate he would be absent – said he did not know how he was going to vote, and he was still waiting for legal advice.
In the last two years, Chula Vista has spent more than $600,000 defending council members questioned or prosecuted by the district attorney's Public Integrity Unit.
Ramirez made the initial request last month. Over the course of several meetings, some residents criticized the city for agreeing to pay $194,000 for Castaneda's legal bills, which he incurred for his defense during a perjury trial in April. Castaneda was found not guilty on six counts and a mistrial was declared on four others...
Last month, Ramirez asked for the council's support in requesting reimbursement for legal bills. He said District Attorney Bonnie Dumanis has unfairly persecuted Chula Vista with investigations that have led nowhere.
In an interview Ramirez said: “When I go fishing, I pay for the fishing expedition.”...
Wednesday, October 08, 2008
Friday, October 03, 2008
Chula Vista Peaker Power Plant Protest October 2, 2008
The young man in the middle drew the colorful posters his family is holding.
The Russell Coronado family
Meanwhile, inside the council chambers, the hearing was taking place. The crowd outside could be heard now and then.
Protest planner Hugo Ivan Salazar at the hearing.
After dark, a crowd waited outside while the CEC (California Energy Commission)hearing went on.
Diana Vera spoke to the crowd.
Wednesday, October 01, 2008
Why do businesses give shoo-in Greg Cox such big campaign contributions?
The San Diego Reader's Susan Luzzaro has some questions, and some possible answers, about San Diego County Supervisor Greg Cox's campaign donors.San Diego Reader
Big War Chest, No War
By Susan Luzzaro
May 21, 2008
"...Greg Cox has been a San Diego County supervisor since 1995, and he will be a candidate again on the June 3 ballot. He represents District 1, the southern part of the county, which includes Chula Vista, where his wife is mayor, and Otay Mesa. Cox’s opponent, Howard Johnson, says his campaign has only $20,000.
"The total amount Cox has collected for his war chest, $280,000, is remarkable because it is so unnecessary. Why are people donating sizable amounts to a shoo-in? A look at Cox’s campaign donations between July 2007 and March 2008 is equally remarkable for what they reveal about what’s going on in his district.
"...In the second half of 2007, employees of San Diego Gas & Electric and its parent company, Sempra Energy, gave Greg Cox $6150. SDG&E has been pushing hard to get the Sunrise Powerlink project approved. Supervisor Cox and Mayor Cox have given strong public support to the controversial project.
"Worth mentioning is that the Coxes have investments in three companies located on Otay Mesa: Medtronic Inc., Copart Inc., and Ethos Environmental. Disgraced former port commissioner David Malcolm is a major stockholder in Ethos Environmental.
"Do campaign contributions affect the future? Ask the Coxes. A February 1995 Union-Tribune article reported, “In the six weeks before Greg Cox was appointed to the Board of Supervisors, he and his wife made campaign contributions to three of the four county supervisors who would select him to the coveted position.” Dianne Jacob, the one supervisor who did not receive contributions, said she would not have “accepted money under circumstances like that.… It carries the wrong message.”
Big War Chest, No War
By Susan Luzzaro
May 21, 2008
"...Greg Cox has been a San Diego County supervisor since 1995, and he will be a candidate again on the June 3 ballot. He represents District 1, the southern part of the county, which includes Chula Vista, where his wife is mayor, and Otay Mesa. Cox’s opponent, Howard Johnson, says his campaign has only $20,000.
"The total amount Cox has collected for his war chest, $280,000, is remarkable because it is so unnecessary. Why are people donating sizable amounts to a shoo-in? A look at Cox’s campaign donations between July 2007 and March 2008 is equally remarkable for what they reveal about what’s going on in his district.
"...In the second half of 2007, employees of San Diego Gas & Electric and its parent company, Sempra Energy, gave Greg Cox $6150. SDG&E has been pushing hard to get the Sunrise Powerlink project approved. Supervisor Cox and Mayor Cox have given strong public support to the controversial project.
"Worth mentioning is that the Coxes have investments in three companies located on Otay Mesa: Medtronic Inc., Copart Inc., and Ethos Environmental. Disgraced former port commissioner David Malcolm is a major stockholder in Ethos Environmental.
"Do campaign contributions affect the future? Ask the Coxes. A February 1995 Union-Tribune article reported, “In the six weeks before Greg Cox was appointed to the Board of Supervisors, he and his wife made campaign contributions to three of the four county supervisors who would select him to the coveted position.” Dianne Jacob, the one supervisor who did not receive contributions, said she would not have “accepted money under circumstances like that.… It carries the wrong message.”
Tuesday, September 30, 2008
Recall Mayor Cheryl Cox press conference
September 30, 2008
Press Conference: Communities Taking Action, a new grassroots organization, takes the first steps to recall Mayor Cox
276 4th Ave Chula Vista, CA 91910 (map)
Joins us for our press conference where we announce that we are recalling Mayor Cheryl Cox. This will take place in front of City Hall at 6:00 PM.
Days earlier, Channel 10 covered another protest against Cheryl Cox.
Press Conference: Communities Taking Action, a new grassroots organization, takes the first steps to recall Mayor Cox
276 4th Ave Chula Vista, CA 91910 (map)
Joins us for our press conference where we announce that we are recalling Mayor Cheryl Cox. This will take place in front of City Hall at 6:00 PM.
Days earlier, Channel 10 covered another protest against Cheryl Cox.
Chula Vista Power Plant Protest
CEC Protest at Chula Vista City Hall
Thu, Oct 2, 5pm – 7pm
276 4th Ave Chula Vista, CA 91910 (map)
California Energy Commission meeting begins at 10AM in Chula Vista City Hall. You can come early if you wish. PROTEST begins at 5PM. Make sure to bring your kids, family, and friends. Plenty of parking on Davidson Street.
Thu, Oct 2, 5pm – 7pm
276 4th Ave Chula Vista, CA 91910 (map)
California Energy Commission meeting begins at 10AM in Chula Vista City Hall. You can come early if you wish. PROTEST begins at 5PM. Make sure to bring your kids, family, and friends. Plenty of parking on Davidson Street.
Open government=rule of law
"...[W]e have to deal with the big issues at hand: the loss of open government, the degradation of the rule of law..."
--Mike Copass
--Mike Copass
Saturday, September 27, 2008
Where did Bonnie Dumanis send former PIU chief Patrcik O'Toole?
In March 2007 (see photo above) San Diego District Attorney Bonnie Dumanis announced the formation of the Public Integrity Unit with much fanfare.
Bonnie Dumanis recently moved controversial Public Integrity Unit chief Patrick O'Toole out of the unit. But what is he doing now?
He continues to be absent from the District Attorney's office flow chart. But perhaps that is because he doesn't want to be seen as subordinate to Bonnie. He'd rather not be seen at all.
I guess Bonnie and Pat want to leave the matter of O'Toole's current assignment up to our imaginations.
Here are some possibilities I've come up with:
1. A new PIU has been formed, known as the "public intimidation unit" or, alternatively, the "political impact unit." It will continue to investigate political enemies, but in a secretive manner.
2. O'Toole's new job will continue to involve the tipster(s) who initiated the investigations of the Chula Vista city employee who took 2 hours off work to spy on mayor and former CVESD school board member Cheryl Cox's yacht party with David Malcolm, and councilman Steve Castaneda's claim that he never planned to buy a condo which he never bought.
3. O'Toole will ask for and receive assistance from his friends in the Bush Justice Department, an office which has proven to be expert in political prosecutions (Don Seligman), and hiring and firing based on ideology and politics (Anthony Gonzalez and Monica Goodling and the eight fired US attorneys).
4. O'Toole will prove to be an invaluable aid to Dumanis' political ambitions, or, alternatively, the two of them will go down in flames together when their secret shenanigans are exposed.
Friday, September 26, 2008
Chula Vista falling apart under leadership of Cheryl Cox and Steve Castaneda
Scott Lewis writes about Dave Garcia, the fired city manager of Chula Vista, and his relationship with mayor Cheryl Cox and Councilman Steve Castaneda. After attacking Cheryl Cox regarding perjury charges that were rejected by a jury, Castaneda seems to be working well with Cox in their joint effort to make questionable and secret charges against the city manager.
Help Wanted: Doctor, City of Chula Vista
By Scott Lewis
Sept. 18, 2008
...The dysfunctional City Council could not even agree to protect taxes and fees the city already charges. There will be more revenue losses.
There are some city managers who see it as their job to placate their nervous bosses on city councils -- giving them what they want (low taxes) and avoiding what they don't want (painful and unpopular cuts). And some of them are clever enough to push off budget obligations even in the toughest of times. David Garcia, whatever you think of him now, was not one of those managers. He spoke with a sense of reality about the situation all local cities are in and he didn't hide the necessary pain.
If the City Council, consumed with short term convictions, chooses someone the politicians can bully, Chula Vista will someday fall off the rails and ground to a halt.
So why do they even need to choose a new manager? Why was Garcia fired without an explanation? I don't know. A month ago, the local newspaper revealed that Chula Vista Mayor Cheryl Cox had officially chided Garcia for viewing what was called "inappropriate" images on his computer. Cox and Garcia agreed that the matter had been settled between the concerned employees who had complained and Garcia. The word "inappropriate" implies quite a spectrum. Managing a fantasy football team, for instance, could be "inappropriate" but so could viewing pornography.
The fact that the matter had been handled to supposedly everyone's satisfaction implied that whatever Garcia was viewing was more on the former side of the spectrum than the latter. Garcia's attorney, Bob Ottilie, said that the images were vacation photos. Again, "vacation photos" can include quite a spectrum of images. And there is no excuse or apologizing for a man who would create a hostile work environment by displaying nude pictures or something.
Unfortunately, the city has, to date, not released the details about what was inappropriate.
So only a few people know what was happening. And the one who seemed most interested in getting rid of Garcia and sharing what was supposedly inappropriate with reporters -- City Councilman Steve Castaneda -- did not return my call for comment.
I asked Mayor Cox in a dozen different ways to share some insight about what had happened. If Garcia had played better with Castaneda and others, would he have kept his job? What changed between when she seemed OK with the issue between Garcia and now when she joined the 4-1 majority that had him fired?
She wouldn't say.
OK. I went at it differently. Had Garcia's tough approach to balancing the budget created enemies?
"Any time you're involved in a situation in which you are in a hiring freeze and the employees are asked to do more and any time you're involved in layoffs or diminished opportunities the employees will tend to compete and there will be people who are concerned," Cox said.
In other words, yes.
So was this partly why Garcia was fired?
Again, she wouldn't say.
"The City Council believed we needed to make a change in order to move forward together. It became clear that this action was in the best interest of the city," Cox said.
"In order to move forward" is an interesting way to put it. This implies that whatever it was that some City Council members were not going to put behind them what had besmirched Garcia. The dysfunctional body would apparently function even worse.
Yes, that's the last thing Chula Vista needs.
The city is sick to the bone...
Help Wanted: Doctor, City of Chula Vista
By Scott Lewis
Sept. 18, 2008
...The dysfunctional City Council could not even agree to protect taxes and fees the city already charges. There will be more revenue losses.
There are some city managers who see it as their job to placate their nervous bosses on city councils -- giving them what they want (low taxes) and avoiding what they don't want (painful and unpopular cuts). And some of them are clever enough to push off budget obligations even in the toughest of times. David Garcia, whatever you think of him now, was not one of those managers. He spoke with a sense of reality about the situation all local cities are in and he didn't hide the necessary pain.
If the City Council, consumed with short term convictions, chooses someone the politicians can bully, Chula Vista will someday fall off the rails and ground to a halt.
So why do they even need to choose a new manager? Why was Garcia fired without an explanation? I don't know. A month ago, the local newspaper revealed that Chula Vista Mayor Cheryl Cox had officially chided Garcia for viewing what was called "inappropriate" images on his computer. Cox and Garcia agreed that the matter had been settled between the concerned employees who had complained and Garcia. The word "inappropriate" implies quite a spectrum. Managing a fantasy football team, for instance, could be "inappropriate" but so could viewing pornography.
The fact that the matter had been handled to supposedly everyone's satisfaction implied that whatever Garcia was viewing was more on the former side of the spectrum than the latter. Garcia's attorney, Bob Ottilie, said that the images were vacation photos. Again, "vacation photos" can include quite a spectrum of images. And there is no excuse or apologizing for a man who would create a hostile work environment by displaying nude pictures or something.
Unfortunately, the city has, to date, not released the details about what was inappropriate.
So only a few people know what was happening. And the one who seemed most interested in getting rid of Garcia and sharing what was supposedly inappropriate with reporters -- City Councilman Steve Castaneda -- did not return my call for comment.
I asked Mayor Cox in a dozen different ways to share some insight about what had happened. If Garcia had played better with Castaneda and others, would he have kept his job? What changed between when she seemed OK with the issue between Garcia and now when she joined the 4-1 majority that had him fired?
She wouldn't say.
OK. I went at it differently. Had Garcia's tough approach to balancing the budget created enemies?
"Any time you're involved in a situation in which you are in a hiring freeze and the employees are asked to do more and any time you're involved in layoffs or diminished opportunities the employees will tend to compete and there will be people who are concerned," Cox said.
In other words, yes.
So was this partly why Garcia was fired?
Again, she wouldn't say.
"The City Council believed we needed to make a change in order to move forward together. It became clear that this action was in the best interest of the city," Cox said.
"In order to move forward" is an interesting way to put it. This implies that whatever it was that some City Council members were not going to put behind them what had besmirched Garcia. The dysfunctional body would apparently function even worse.
Yes, that's the last thing Chula Vista needs.
The city is sick to the bone...
Risk factor for fraud: employees (like SEDC's Carolyn Smith) who never take a vacation
Why didn't Carolyn Smith take a day off? Maybe she was afraid fraud would be uncovered.
Why No Vacation is a Risk Factor
September 11, 2008
...The [SEDC] audit states that Smith claimed not to have taken a day off for sick leave or vacation because she enjoys her position.
The audit then says this:
A risk factor for fraud in any organization is present when key employees work for many years without taking time off.
I talked to a source of mine who is familiar with these kinds of issues and asked the source why this is a fraud risk.
The source said one reason why certain employees don't go on vacation is because they're afraid that someone will step in their place and "their whole scam will unravel."
"It is very common in fraud situations that you will find people will either not go on vacation or not relinquish their duties to someone else," the source said.
The audit did find fraud in SEDC's hidden system of bonuses; Smith continues to maintain that the documentation her agency provided was sufficient.
Update: I heard back directly from Denise Callahan, the Macias Consulting Group partner that led the audit. This is what she had to say:
A risk factor becomes present when employees do not take vacations because there could be a desire to hide or conceal inappropriate activity. In fact, fraud tends to be uncovered when key employees had to be on leave/vacation and were not able to continue to conceal the activity.
-- ANDREW DONOHUE
Why No Vacation is a Risk Factor
September 11, 2008
...The [SEDC] audit states that Smith claimed not to have taken a day off for sick leave or vacation because she enjoys her position.
The audit then says this:
A risk factor for fraud in any organization is present when key employees work for many years without taking time off.
I talked to a source of mine who is familiar with these kinds of issues and asked the source why this is a fraud risk.
The source said one reason why certain employees don't go on vacation is because they're afraid that someone will step in their place and "their whole scam will unravel."
"It is very common in fraud situations that you will find people will either not go on vacation or not relinquish their duties to someone else," the source said.
The audit did find fraud in SEDC's hidden system of bonuses; Smith continues to maintain that the documentation her agency provided was sufficient.
Update: I heard back directly from Denise Callahan, the Macias Consulting Group partner that led the audit. This is what she had to say:
A risk factor becomes present when employees do not take vacations because there could be a desire to hide or conceal inappropriate activity. In fact, fraud tends to be uncovered when key employees had to be on leave/vacation and were not able to continue to conceal the activity.
-- ANDREW DONOHUE
CCDC's Nancy Graham charged with ethics violations and conflict of interest
Why didn't Bonnie Dumanis' Public Integrity Unit file charges in this case?
Criminal Charges Brought Against Nancy Graham
By ROB DAVIS
Sept. 12, 2008
City Attorney Mike Aguirre's office has charged former Centre City Development Corp. President Nancy Graham with three misdemeanors, alleging that she improperly used her position and failed to disclose her potential conflicts-of-interest.
The charges, filed Wednesday in San Diego Superior Court, say Graham participated in a decision in which she had a financial interest. Graham also faces two counts of violating local ethics rules. One count alleges that Graham influenced the negotiations of a downtown condominium and hotel project at CCDC, the city's downtown redevelopment agency, when she knew it could benefit a former business partner.
The other count says Graham failed to accurately disclose her economic interests. Before moving to San Diego in 2005, Graham worked as a developer in Florida, where she had a business relationship with The Related Group, a large Florida development company. Together, they built a mixed-use condominium project, a partnership that Graham estimated had paid her almost $3 million as of last summer -- including a $125,000 payment that came in mid-2007. Graham did not subsequently report that income on the annual conflict-of-interest form that public officials are required to submit to the city.
The charges say that Graham and her husband began receiving income on March 7, 2006 and continued receiving payments through April or May of 2007.
Graham received the money while she participated in negotiations at CCDC about a city-subsidized $409-million, 41-story hotel and condominium project proposed by The Related Cos., an affiliate and part owner of Graham's Florida business partner. CCDC selected the company as the project's preferred developer in March 2007.
The project at 7th Avenue and Market Street downtown would have been built atop city land and included an $8.7 million city subsidy for including affordable housing. CCDC's board unanimously voted Wednesday to kill that project, citing Graham's involvement and undisclosed business partnership.
State and local laws prohibit public officials from influencing decisions that can benefit themselves, their spouses or their business associates. The laws extend the prohibition for a year after receiving money from a source...
Criminal Charges Brought Against Nancy Graham
By ROB DAVIS
Sept. 12, 2008
City Attorney Mike Aguirre's office has charged former Centre City Development Corp. President Nancy Graham with three misdemeanors, alleging that she improperly used her position and failed to disclose her potential conflicts-of-interest.
The charges, filed Wednesday in San Diego Superior Court, say Graham participated in a decision in which she had a financial interest. Graham also faces two counts of violating local ethics rules. One count alleges that Graham influenced the negotiations of a downtown condominium and hotel project at CCDC, the city's downtown redevelopment agency, when she knew it could benefit a former business partner.
The other count says Graham failed to accurately disclose her economic interests. Before moving to San Diego in 2005, Graham worked as a developer in Florida, where she had a business relationship with The Related Group, a large Florida development company. Together, they built a mixed-use condominium project, a partnership that Graham estimated had paid her almost $3 million as of last summer -- including a $125,000 payment that came in mid-2007. Graham did not subsequently report that income on the annual conflict-of-interest form that public officials are required to submit to the city.
The charges say that Graham and her husband began receiving income on March 7, 2006 and continued receiving payments through April or May of 2007.
Graham received the money while she participated in negotiations at CCDC about a city-subsidized $409-million, 41-story hotel and condominium project proposed by The Related Cos., an affiliate and part owner of Graham's Florida business partner. CCDC selected the company as the project's preferred developer in March 2007.
The project at 7th Avenue and Market Street downtown would have been built atop city land and included an $8.7 million city subsidy for including affordable housing. CCDC's board unanimously voted Wednesday to kill that project, citing Graham's involvement and undisclosed business partnership.
State and local laws prohibit public officials from influencing decisions that can benefit themselves, their spouses or their business associates. The laws extend the prohibition for a year after receiving money from a source...
To Regina Petty, SEDC lawyer: Don't let the door hit you on the way out
Voice of San Diego
by WILL CARLESS
September 25, 2008
Regina Petty, corporate counsel of the Southeastern Economic Development Corp., will not seek to continue as the agency's lawyer, Petty told SEDC's board at last night's meeting.
Petty will stay at the agency while SEDC searches for new legal representation, said SEDC board Chairman Cruz Gonzalez. The board voted last night to issue a request for proposals to find a new attorney for the troubled agency, but Petty said she would not apply to be the agency's lawyer.
"It has been a privilege for me to be SEDC's attorney, and, although I continue to be well qualified to serve -- better qualified actually than when I started as counsel -- in order to have a proper attorney-client relationship, you have to have board members that are willing to reasonably listen to your advice, and care about complying with the law. It's not clear to me that that is currently the case with this board." Petty said.
Petty has been criticized by at least one member of the board. In July, Derryl Williams sent a letter to Mayor Jerry Sanders criticizing the culture of SEDC and the way board meetings have been run.
Williams wrote:
Using corporate counsel and Special Agency Counsel, the President of SEDC controlled questions and the flow of information so that board members could not obtain sufficient answers to assist in making good judgments.
Petty was also criticized by City Attorney Mike Aguirre at an SEDC Executive Committee meeting last week.
"I want to look Carolyn in the face and I want to say 'Regina, it's time for both of you to go,' in my opinion," Aguirre said. "I've listened to several of the meetings, I've listened to the legal advice and I have to say the legal advice is skewed in favor of the existing management."
And the author of a damning audit of the agency, released two weeks ago, also mentioned Petty's legal advice. The lead auditor said some board members her team interviewed felt that Petty "would convey info they didn't believe was quite accurate." ...
by WILL CARLESS
September 25, 2008
Regina Petty, corporate counsel of the Southeastern Economic Development Corp., will not seek to continue as the agency's lawyer, Petty told SEDC's board at last night's meeting.
Petty will stay at the agency while SEDC searches for new legal representation, said SEDC board Chairman Cruz Gonzalez. The board voted last night to issue a request for proposals to find a new attorney for the troubled agency, but Petty said she would not apply to be the agency's lawyer.
"It has been a privilege for me to be SEDC's attorney, and, although I continue to be well qualified to serve -- better qualified actually than when I started as counsel -- in order to have a proper attorney-client relationship, you have to have board members that are willing to reasonably listen to your advice, and care about complying with the law. It's not clear to me that that is currently the case with this board." Petty said.
Petty has been criticized by at least one member of the board. In July, Derryl Williams sent a letter to Mayor Jerry Sanders criticizing the culture of SEDC and the way board meetings have been run.
Williams wrote:
Using corporate counsel and Special Agency Counsel, the President of SEDC controlled questions and the flow of information so that board members could not obtain sufficient answers to assist in making good judgments.
Petty was also criticized by City Attorney Mike Aguirre at an SEDC Executive Committee meeting last week.
"I want to look Carolyn in the face and I want to say 'Regina, it's time for both of you to go,' in my opinion," Aguirre said. "I've listened to several of the meetings, I've listened to the legal advice and I have to say the legal advice is skewed in favor of the existing management."
And the author of a damning audit of the agency, released two weeks ago, also mentioned Petty's legal advice. The lead auditor said some board members her team interviewed felt that Petty "would convey info they didn't believe was quite accurate." ...
Tuesday, September 09, 2008
Wall Street Journal Endorses Mike Aguirre
'The Garden at This Skunk Party'
September 8, 2008
San Diego's political scene was buzzing this weekend over this Wall Street Journal editorial praising City Attorney Mike Aguirre for his battle against public employee pensions.
The paper describes all of the troubles that have befallen San Diego city government, from run-ins with the IRS and SEC to the $1.2 billion pension deficit.
Then it says:
The garden at this skunk party is City Attorney Mike Aguirre, who has made himself very unpopular with the political establishment by suing to rescind the 1996 and 2002 pension promises. Though a liberal Democrat normally sympathetic to unions, he says the benefits were granted as part of "the largest municipal securities fraud in American history," and so taxpayers shouldn't have to honor them.
It goes on to talk about similar pension problems in New York and New Jersey, and closes like this:
Taxpayers in those states need a rabble-rouser like Mr. Aguirre willing to stand up to union interests. The San Diego attorney faces a tough re-election battle in November, but he's setting off an alarm that voters across America need to hear.
-- ANDREW DONOHUE
September 8, 2008
San Diego's political scene was buzzing this weekend over this Wall Street Journal editorial praising City Attorney Mike Aguirre for his battle against public employee pensions.
The paper describes all of the troubles that have befallen San Diego city government, from run-ins with the IRS and SEC to the $1.2 billion pension deficit.
Then it says:
The garden at this skunk party is City Attorney Mike Aguirre, who has made himself very unpopular with the political establishment by suing to rescind the 1996 and 2002 pension promises. Though a liberal Democrat normally sympathetic to unions, he says the benefits were granted as part of "the largest municipal securities fraud in American history," and so taxpayers shouldn't have to honor them.
It goes on to talk about similar pension problems in New York and New Jersey, and closes like this:
Taxpayers in those states need a rabble-rouser like Mr. Aguirre willing to stand up to union interests. The San Diego attorney faces a tough re-election battle in November, but he's setting off an alarm that voters across America need to hear.
-- ANDREW DONOHUE
Do CCDC officials cover up until they can't cover up any more?
The following story from Voice of San Diego contains an audio link.
Voice of San Diego
Outrageous
If you're following the Nancy Graham story, you should listen to her comments at an April board meeting of the Centre City Development Corp., the downtown redevelopment agency she once led. (Thanks to Ian Trowbridge and Pat Flannery for the audio.)
AUDIO: Nancy Graham's Statement
At the April 23 CCDC meeting, Graham read a statement into the record about concerns that had been raised that Graham may have had a conflict by participating in the negotiations of a proposed downtown skyscraper. CCDC's board defended Graham at the meeting.
(We later revealed that Graham had received money from an affiliate of the project's developer at the same time she was involved in those negotiations.)
In April, Graham said:
I can guarantee you and I think you all know me well enough to know right now that there's no truth to those allegations whatsoever. ...
Most importantly, I think what they were not aware of is that I did not negotiate this deal, but brought in two people that have impeccable credentials. ... I asked Jerry (Trimble) and Murray (Kane) to come in and negotiate this particular transaction. ... I personally think it would be an absolute insult to the members of the negotiating team to suggest that in any way they would not work to protect CCDC and the Redevelopment Agency's interests or that I could sway them to do something. These guys have incredible integrity. I did not negotiate this transaction. However, having said that, while I think the whole issue is a red herring like they say in law school, I nevertheless feel it's important for me to recuse myself from participating in any further action or discussions with regard to 7th and Market.
That statement and decision drew effusive praise from CCDC board member Jennifer LeSar:
I think it's incredibly unfortunate. I've always found Nancy to be incredibly transparent, very ethical, I've never been surprised by anything that she's done, she's an excellent communicator and has been always forthcoming about the things that have been going on in her life that could have any impact. And I just find this really, really unfortunate. For whoever's behind this behavior, I think it's atrocious. And I guess I just want to say that I think Nancy is taking the higher road here. ... Nancy, I guess I just want you to know, I'm very proud of you. I talk about you in places I do this kind of work. I think we're lucky to have you. In my mind, these going-ons don't taint my impression of you, your leadership here or the work you've done.
CCDC board chairman Fred Maas weighed in, too:
Some of the things that have been said and the tactics and conduct of people who have tried to impugn and indict Nancy has been outrageous. It's been upsetting to me as a person, let alone as chair, for the kind of tactics and untruths which have been circulated regarding this project. ... To make these accusations by whoever for whatever reasons I think is an outrage and it is worthy of scorn by this board and everybody in the community. She has my unqualified support.
Both Maas and LeSar have since been more contrite.
-- ROB DAVIS
Monday, September 8, 2008
The Un-Refuted Claim
At an April board meeting, former Centre City Development Corp. President Nancy Graham addressed concerns about her potential conflict of interest with the affiliate of a business partner working to build a city-subsidized skyscraper downtown.
"I can guarantee you and I think you all know me well enough to know right now that there's no truth to those allegations whatsoever," she said. "... I did not negotiate this transaction."
But as we've since documented, Graham was in fact involved in negotiations -- at the same time she was receiving money from the developer's affiliate.
James Lough, an outside attorney CCDC hired to investigate Graham's involvement, drew the same conclusion. In a staff report for Wednesday's CCDC meeting, Lough wrote: "Ms. Graham was involved in the negotiations of the potential [development and disposition agreement]."
Lough's conclusion came after reviewing CCDC files and interviewing the agency's staff. But the CCDC staff -- many of whom also had been involved in the negotiations -- did not publicly raise any concerns about the obvious discrepancies in Graham's explanation.
I asked Fred Maas, the CCDC chairman, whether he was concerned by the lack of disclosure. He said:
Lots of mistakes and unfortunate circumstances happened during that period of time. In retrospect I think we all wish we had done things differently, but we didn't. We recognize the omissions and errors and are doing our best to correct them.
-- ROB DAVIS
September 8, 2008
Voice of San Diego
Outrageous
If you're following the Nancy Graham story, you should listen to her comments at an April board meeting of the Centre City Development Corp., the downtown redevelopment agency she once led. (Thanks to Ian Trowbridge and Pat Flannery for the audio.)
AUDIO: Nancy Graham's Statement
At the April 23 CCDC meeting, Graham read a statement into the record about concerns that had been raised that Graham may have had a conflict by participating in the negotiations of a proposed downtown skyscraper. CCDC's board defended Graham at the meeting.
(We later revealed that Graham had received money from an affiliate of the project's developer at the same time she was involved in those negotiations.)
In April, Graham said:
I can guarantee you and I think you all know me well enough to know right now that there's no truth to those allegations whatsoever. ...
Most importantly, I think what they were not aware of is that I did not negotiate this deal, but brought in two people that have impeccable credentials. ... I asked Jerry (Trimble) and Murray (Kane) to come in and negotiate this particular transaction. ... I personally think it would be an absolute insult to the members of the negotiating team to suggest that in any way they would not work to protect CCDC and the Redevelopment Agency's interests or that I could sway them to do something. These guys have incredible integrity. I did not negotiate this transaction. However, having said that, while I think the whole issue is a red herring like they say in law school, I nevertheless feel it's important for me to recuse myself from participating in any further action or discussions with regard to 7th and Market.
That statement and decision drew effusive praise from CCDC board member Jennifer LeSar:
I think it's incredibly unfortunate. I've always found Nancy to be incredibly transparent, very ethical, I've never been surprised by anything that she's done, she's an excellent communicator and has been always forthcoming about the things that have been going on in her life that could have any impact. And I just find this really, really unfortunate. For whoever's behind this behavior, I think it's atrocious. And I guess I just want to say that I think Nancy is taking the higher road here. ... Nancy, I guess I just want you to know, I'm very proud of you. I talk about you in places I do this kind of work. I think we're lucky to have you. In my mind, these going-ons don't taint my impression of you, your leadership here or the work you've done.
CCDC board chairman Fred Maas weighed in, too:
Some of the things that have been said and the tactics and conduct of people who have tried to impugn and indict Nancy has been outrageous. It's been upsetting to me as a person, let alone as chair, for the kind of tactics and untruths which have been circulated regarding this project. ... To make these accusations by whoever for whatever reasons I think is an outrage and it is worthy of scorn by this board and everybody in the community. She has my unqualified support.
Both Maas and LeSar have since been more contrite.
-- ROB DAVIS
Monday, September 8, 2008
The Un-Refuted Claim
At an April board meeting, former Centre City Development Corp. President Nancy Graham addressed concerns about her potential conflict of interest with the affiliate of a business partner working to build a city-subsidized skyscraper downtown.
"I can guarantee you and I think you all know me well enough to know right now that there's no truth to those allegations whatsoever," she said. "... I did not negotiate this transaction."
But as we've since documented, Graham was in fact involved in negotiations -- at the same time she was receiving money from the developer's affiliate.
James Lough, an outside attorney CCDC hired to investigate Graham's involvement, drew the same conclusion. In a staff report for Wednesday's CCDC meeting, Lough wrote: "Ms. Graham was involved in the negotiations of the potential [development and disposition agreement]."
Lough's conclusion came after reviewing CCDC files and interviewing the agency's staff. But the CCDC staff -- many of whom also had been involved in the negotiations -- did not publicly raise any concerns about the obvious discrepancies in Graham's explanation.
I asked Fred Maas, the CCDC chairman, whether he was concerned by the lack of disclosure. He said:
Lots of mistakes and unfortunate circumstances happened during that period of time. In retrospect I think we all wish we had done things differently, but we didn't. We recognize the omissions and errors and are doing our best to correct them.
-- ROB DAVIS
September 8, 2008
Friday, September 05, 2008
Mike Aguirre wins regarding police retirement payments
A court has dismissed a lawsuit by police against San Diego City Attorney Mike Aguirre. Aguirre has been trying to reduce pension benefits given away in 2002 by Mayor Dick Murphy, with support from Ann Smith of the MEA. The purpose of the giveaway was to keep unions quiet about a billion-dollar underfunding of the city pension system.Voice of San Diego
by WILL CARLESS
September 4, 2008
Court Loss for City Cops
In another legal loss for city cops, a federal court judge has dismissed a lawsuit brought by more than 1,500 city police officers against City Attorney Mike Aguirre and the city's retirement system.
The police officers had argued that their federal constitutional rights were violated when, in 2005, the city reduced or eliminated their employment benefits by mandating that police officers pay higher payments into their retirement plans, thus reducing the take-home pay of many officers.
In her decision yesterday, Judge Marilyn Huff dismissed the case, referring in her decision to an earlier decision she made in a related case brought by the Police Officers Association, the union that represents city police officers.
Huff ruled in that case that there was insufficient proof that the employment benefits that were reduced in 2005 were vested constitutional rights, and that the under-funding of the pension system doesn't implicate federal constitutional rights.
This was the second court loss for city police officers in two weeks. On Aug. 21, another federal court judge dismissed a lawsuit brought against the city by more than 700 officers for breach of contract and unpaid overtime.
"So much for Aguirre never winning a lawsuit," said Executive Assistant City Attorney Don McGrath, who represented Aguirre in the lawsuit. McGrath said that, by his count, the POA has lost six of the seven lawsuits it brought against the city and Aguirre.
by WILL CARLESS
September 4, 2008
Court Loss for City Cops
In another legal loss for city cops, a federal court judge has dismissed a lawsuit brought by more than 1,500 city police officers against City Attorney Mike Aguirre and the city's retirement system.
The police officers had argued that their federal constitutional rights were violated when, in 2005, the city reduced or eliminated their employment benefits by mandating that police officers pay higher payments into their retirement plans, thus reducing the take-home pay of many officers.
In her decision yesterday, Judge Marilyn Huff dismissed the case, referring in her decision to an earlier decision she made in a related case brought by the Police Officers Association, the union that represents city police officers.
Huff ruled in that case that there was insufficient proof that the employment benefits that were reduced in 2005 were vested constitutional rights, and that the under-funding of the pension system doesn't implicate federal constitutional rights.
This was the second court loss for city police officers in two weeks. On Aug. 21, another federal court judge dismissed a lawsuit brought against the city by more than 700 officers for breach of contract and unpaid overtime.
"So much for Aguirre never winning a lawsuit," said Executive Assistant City Attorney Don McGrath, who represented Aguirre in the lawsuit. McGrath said that, by his count, the POA has lost six of the seven lawsuits it brought against the city and Aguirre.
Saturday, August 30, 2008
SEDC refuses public records requests
SEDC Won't Produce Documents
August 29, 2008
Voice of San Diego
by Will Carless
The Southeastern Economic Development Corp. has, for almost two months, refused to provide documents and information that would shed light on when and how its various clandestine bonus programs were introduced.
SEDC President Carolyn Y. Smith has consistently claimed that the bonus programs pre-date her arrival at SEDC, and that she was merely following agency protocol when she approved hundreds of thousands of dollars in bonuses for herself and her staff.
But the agency has repeatedly declined to provide any documentation that would prove such claims. And a story in The San Diego Union-Tribune earlier this month quoted Smith’s three predecessors at the agency as saying that they do not remember any such bonus programs being in place during their tenure...
August 29, 2008
Voice of San Diego
by Will Carless
The Southeastern Economic Development Corp. has, for almost two months, refused to provide documents and information that would shed light on when and how its various clandestine bonus programs were introduced.
SEDC President Carolyn Y. Smith has consistently claimed that the bonus programs pre-date her arrival at SEDC, and that she was merely following agency protocol when she approved hundreds of thousands of dollars in bonuses for herself and her staff.
But the agency has repeatedly declined to provide any documentation that would prove such claims. And a story in The San Diego Union-Tribune earlier this month quoted Smith’s three predecessors at the agency as saying that they do not remember any such bonus programs being in place during their tenure...
Is the CCDC a charitable organization for San Diego developers?
By Ian Trowbridge, Mission Hills
Voice of San Diego
August 29, 2008
On Tuesday, the mayor will ask the City Council to confirm his reappointments of three CCDC Board members, Fred Maas, Kim Kilkenny and Robert McNeely whose terms have expired even as several investigations of CCDC are underway and it is important to know whether any of these board members are implicated in the growing scandal at CCDC. With the collusion of Council President Scott Peters, these reappointments have been placed on the consent calendar.
..Maas is a Republican political operative turned developer and a confidante of Nancy Graham -- meeting with her according to her calendar for the whole of Wednesday mornings for weeks.
As befits a political operative, he currently has the role of distancing the CCDC Board from Graham even though they appointed her, gave her a $65,000 bonus for unknown services, and allowed her to run CCDC as if it were a charitable organization for downtown developers.
Maas refuses to release documents detailing the goals set for Graham and how she achieved them to warrant the $65,000 bonus even though the board violated the Ralph M. Brown Act (Government Code Section 54957) in conducting and voting on her compensation in closed session. Kilkenny is an executive of a major developer of Otay Ranch who seems to have little concept that he is supposed to protect the public interest. McNeely was on the selection committee that chose Nancy Graham...
Voice of San Diego
August 29, 2008
On Tuesday, the mayor will ask the City Council to confirm his reappointments of three CCDC Board members, Fred Maas, Kim Kilkenny and Robert McNeely whose terms have expired even as several investigations of CCDC are underway and it is important to know whether any of these board members are implicated in the growing scandal at CCDC. With the collusion of Council President Scott Peters, these reappointments have been placed on the consent calendar.
..Maas is a Republican political operative turned developer and a confidante of Nancy Graham -- meeting with her according to her calendar for the whole of Wednesday mornings for weeks.
As befits a political operative, he currently has the role of distancing the CCDC Board from Graham even though they appointed her, gave her a $65,000 bonus for unknown services, and allowed her to run CCDC as if it were a charitable organization for downtown developers.
Maas refuses to release documents detailing the goals set for Graham and how she achieved them to warrant the $65,000 bonus even though the board violated the Ralph M. Brown Act (Government Code Section 54957) in conducting and voting on her compensation in closed session. Kilkenny is an executive of a major developer of Otay Ranch who seems to have little concept that he is supposed to protect the public interest. McNeely was on the selection committee that chose Nancy Graham...
CCDC Attorney Resigns
CCDC Attorney Resigns
Voice of San Diego
By Rob Davis
Aug. 29, 2008
Helen Holmes Peak, the corporate counsel for the Centre City Development Corp., has resigned, citing concerns about a potential conflict of interest.
Peak, who is a partner with Lounsbery Ferguson Altona & Peak LLP, an Escondido law firm, participated in discussions about the proposed Ballpark Village from 2005 to 2007, while one of her partners represented Lennar Corp., one of the project's developers.
She did not disclose the relationship on her statements of economic interest until 2007. Even when she did report it, she did not recuse herself from meetings and discussions about Ballpark Village, a massive mixed-use project proposed by JMI Realty and Lennar.
Peak disclosed receiving more than $10,000 from Lennar in 2007, according to her annual conflict-of-interest disclosure forms. But she didn't subsequently recuse herself from discussions about Ballpark Village, saying that she didn't know Lennar was involved.
Lennar is essentially a silent partner in the project; it is part owner of the underlying land but is not listed documentation submitted about the project...
Voice of San Diego
By Rob Davis
Aug. 29, 2008
Helen Holmes Peak, the corporate counsel for the Centre City Development Corp., has resigned, citing concerns about a potential conflict of interest.
Peak, who is a partner with Lounsbery Ferguson Altona & Peak LLP, an Escondido law firm, participated in discussions about the proposed Ballpark Village from 2005 to 2007, while one of her partners represented Lennar Corp., one of the project's developers.
She did not disclose the relationship on her statements of economic interest until 2007. Even when she did report it, she did not recuse herself from meetings and discussions about Ballpark Village, a massive mixed-use project proposed by JMI Realty and Lennar.
Peak disclosed receiving more than $10,000 from Lennar in 2007, according to her annual conflict-of-interest disclosure forms. But she didn't subsequently recuse herself from discussions about Ballpark Village, saying that she didn't know Lennar was involved.
Lennar is essentially a silent partner in the project; it is part owner of the underlying land but is not listed documentation submitted about the project...
Wednesday, August 27, 2008
Courts shouldn't have to depend on the memories and truthfulness of board members--Brown Act requires closed sessions be recorded
It appears to me that many, if not most, unlawful strategies are decided by public entities during closed sessions in board meetings.
Good for Briggs and Trowbridge, who are working to bring those discussions to light.
Lawyer to SEDC: Record Meeting
Cory Briggs, a local attorney who filed a lawsuit last week against the Southeastern Economic Development Corp., has written a letter to the agency's corporate counsel, Regina Petty, asking her to ensure that the closed session of SEDC's board meeting tomorrow is recorded.
Briggs' letter says his client, activist Ian Trowbridge, wants the meeting recorded because the closed session discussion could become evidence in his lawsuit against the agency. That lawsuit alleges that SEDC's board violated state open meetings law, known as the Brown Act, when it voted in closed session last month to pay outgoing SEDC President Carolyn Y. Smith a $100,350 severance payment.
The Brown Act forbids the board from discussing a termination payment in private... the open session discussion is preceded by a closed session item that's listed on the meeting agenda as "Public Employee PerformanceEvaluation/ Discipline/ Dismissal/ Release."
Briggs' letter reads:
"The need for a neutral, objective record of tomorrow’s closed-session discussions should be obvious at this point. The discussions are likely to be evidence in the above-referenced matter and may become evidence in other proceedings. The best protection for my client, your client, and especially the public is for there to be a clear record of what is discussed -- one that doesn’t rely on the memories or truthfulness of persons accused of breaking the law -- in the event that the discussions become relevant at a later date...
"[N]ot preserving a contemporaneous record of the discussions could constitute the spoliation of evidence and subject your client (and possibly even you) to sanctions."...
by WILL CARLESS
August 26, 2008
Good for Briggs and Trowbridge, who are working to bring those discussions to light.
Lawyer to SEDC: Record Meeting
Cory Briggs, a local attorney who filed a lawsuit last week against the Southeastern Economic Development Corp., has written a letter to the agency's corporate counsel, Regina Petty, asking her to ensure that the closed session of SEDC's board meeting tomorrow is recorded.
Briggs' letter says his client, activist Ian Trowbridge, wants the meeting recorded because the closed session discussion could become evidence in his lawsuit against the agency. That lawsuit alleges that SEDC's board violated state open meetings law, known as the Brown Act, when it voted in closed session last month to pay outgoing SEDC President Carolyn Y. Smith a $100,350 severance payment.
The Brown Act forbids the board from discussing a termination payment in private... the open session discussion is preceded by a closed session item that's listed on the meeting agenda as "Public Employee PerformanceEvaluation/ Discipline/ Dismissal/ Release."
Briggs' letter reads:
"The need for a neutral, objective record of tomorrow’s closed-session discussions should be obvious at this point. The discussions are likely to be evidence in the above-referenced matter and may become evidence in other proceedings. The best protection for my client, your client, and especially the public is for there to be a clear record of what is discussed -- one that doesn’t rely on the memories or truthfulness of persons accused of breaking the law -- in the event that the discussions become relevant at a later date...
"[N]ot preserving a contemporaneous record of the discussions could constitute the spoliation of evidence and subject your client (and possibly even you) to sanctions."...
by WILL CARLESS
August 26, 2008
Monday, August 25, 2008
Shocking! Nancy Graham lied to the press!
Voice of San Diego reports: "When she resigned July 24, [CCDC'S Nancy]Graham said she was in Tennessee, caring for her elderly mother..."
The Palm Beach Post reports:
"Her 83-year-old mom, Virginia Roskan, has Parkinson's. But when Page Two called Roskan's home Thursday, Graham's sister said she had no idea where Graham was.
"'She's not here right now, and I have no idea where Nancy is,' Kay Smith said from Lebanon, Tenn. 'She's been traveling a lot. I haven't seen her in a while...'"
The Palm Beach Post reports:
"Her 83-year-old mom, Virginia Roskan, has Parkinson's. But when Page Two called Roskan's home Thursday, Graham's sister said she had no idea where Graham was.
"'She's not here right now, and I have no idea where Nancy is,' Kay Smith said from Lebanon, Tenn. 'She's been traveling a lot. I haven't seen her in a while...'"
Thursday, August 21, 2008
Half the SEDC board supports Artie
These people won't quit! It seems they have no shame. It appears that Charles Simpson, Sharon Whitehurst-Payne, Randy Jones and Kea Hagan really believe that it's okay to use tax dollars for insiders, and leave the public good out of the equation. Even after large secret bonuses and the chairman's profits from a deal with SEDC have been exposed, they want to continue business as usual.
SEDC keeps Owen as chairman
By Helen Gao
UNION-TRIBUNE STAFF WRITER
August 13, 2008
"Southeastern Economic Development Corp. Chairman Artie “Chip” Owen survived an attempt on his leadership position Wednesday night, as a board vote to oust him failed.
"The board voted 5-4 to keep Owen in place. His land deals and connections to a developer with SEDC business have come under fire.
“I feel we need to be a little more proactive than we have been,” said board member Richard Geisler, who made a motion to remove Owen.
"
The quasi-independent nonprofit city agency guides redevelopment on 7.2 square miles east of downtown, and has been under fire for budget and pay anomalies. The board fired president Carolyn Smith last month, with 90 days' notice.
"Geisler was supported by board members Cruz Gonzalez, Karen L. Howard and Derryl Williams. They were outnumbered by votes from Owen, Charles Simpson, Sharon Whitehurst-Payne, Randy Jones and Kea Hagan..."
After the above vote, mayor Jerry Sanders appointed new members to fill the seats of all but one of the board members who voted to keep Owen (including Owen himself). Unfortunately, Sharon Whitehurst-Payne remains on the SEDC board.
SEDC keeps Owen as chairman
By Helen Gao
UNION-TRIBUNE STAFF WRITER
August 13, 2008
"Southeastern Economic Development Corp. Chairman Artie “Chip” Owen survived an attempt on his leadership position Wednesday night, as a board vote to oust him failed.
"The board voted 5-4 to keep Owen in place. His land deals and connections to a developer with SEDC business have come under fire.
“I feel we need to be a little more proactive than we have been,” said board member Richard Geisler, who made a motion to remove Owen.
"
The quasi-independent nonprofit city agency guides redevelopment on 7.2 square miles east of downtown, and has been under fire for budget and pay anomalies. The board fired president Carolyn Smith last month, with 90 days' notice.
"Geisler was supported by board members Cruz Gonzalez, Karen L. Howard and Derryl Williams. They were outnumbered by votes from Owen, Charles Simpson, Sharon Whitehurst-Payne, Randy Jones and Kea Hagan..."
After the above vote, mayor Jerry Sanders appointed new members to fill the seats of all but one of the board members who voted to keep Owen (including Owen himself). Unfortunately, Sharon Whitehurst-Payne remains on the SEDC board.
Wednesday, August 20, 2008
Who is Chula Vista's city attorney?
Who exactly is the city attorney that Cheryl Cox wants the City Manager to coordinate with? It's not Ann Y. Moore, even though Moore is still listed on the city's website.
The National Law Journal wrote on June 2, 2008:
"Chula Vista City Attorney Ann Y. Moore is retiring on Thursday and will join San Diego's Norton Moore as a senior partner, the San Diego Union-Tribune reported. Moore began as an assistant city attorney in 1995 and was appointed city attorney in 2003. The move comes before a ballot initiative that would make the city attorney elected, rather than appointed, if passed. The city council hasn't named a replacement for Moore, the Union-Tribune reported."
What's going on, Mayor Cox? Who prepared that letter for Mr. Garcia? Why the secrecy?
The National Law Journal wrote on June 2, 2008:
"Chula Vista City Attorney Ann Y. Moore is retiring on Thursday and will join San Diego's Norton Moore as a senior partner, the San Diego Union-Tribune reported. Moore began as an assistant city attorney in 1995 and was appointed city attorney in 2003. The move comes before a ballot initiative that would make the city attorney elected, rather than appointed, if passed. The city council hasn't named a replacement for Moore, the Union-Tribune reported."
What's going on, Mayor Cox? Who prepared that letter for Mr. Garcia? Why the secrecy?
Chula Vista Mayor Cheryl Cox had problems in her earlier job
Recently two employees reported that Chula Vista City Manager David Garcia was looking at inappropriate images on his laptop, and Mayor Cheryl Cox hired an investigator to look into the report. On May 28 she wrote a memo saying the City Council disapproved of Garcia's Internet conduct.
This is a far cry from Cox's behavior as a board member of Chula Vista Elementary School District.
In 2001, two employees at CVESD reported that they feared that a fellow teacher would kill them. This sounds a little more serious that downloading images on a laptop, doesn't it?
Cheryl Cox and her fellow board members never investigated.
Why not? Partly because she knew the report was false. But more importantly, she knew that the two teachers from Castle Park Elementary made the report to coverup criminal wrongdoing by the teachers.
Cheryl also wanted to coverup that wrongdoing. Castle Park Elementary has been a mess ever since, going through 11 principals in 11 years.
It looks like Cheryl wants to make a mess out of Chula Vista, too. Can we look forward to 11 city managers in 11 years, Cheryl?
Sunday, August 10, 2008
FEMA and Sanders got together after the fires, now taxpayers pay inflated bills
Jeanne Fowler couldn't could not figure out why A.J. Diani Construction Co. removed so much cement from her property. Her property had a lot of concrete, she said, but her driveway and pathways were not destroyed. Now she knows: the contractors were paid by the pound.
Diani removed 305 tons of concrete, 372 tons of ash and trash, and 11 tons of metal from the remains of Fowler's home, according to invoices. The company charged $164,789; her insurance company agreed to pay $57,779.
Who pays the difference? Taxpayers.
Watsonville-based Granite Construction Company also participated in the clean-up.
Complaints over debris cleanup tab unanswered
By Dana Wilkie
U-T WASHINGTON BUREAU
August 10, 2008
"Mayor Jerry Sanders... was told in the spring that homeowners were outraged by the program's high costs...At the same time, Sanders' spokesman acknowledged, the mayor heard from homeowners who were getting “fairly elevated invoices.”
"Spokesman Fred Sainz said the mayor “immediately inquired” about the high bills, and though he wasn't wholly satisfied with the explanations from city staff members, Sanders “took their answers at face value.”
"Sanders has been unwilling to comment on the debris-removal program before or since The San Diego Union-Tribune reported Aug. 3 that city-hired contractors charged much more than private contractors to clear similar home sites and often hauled away far more debris than what private companies took from comparable lots.
"The city assured homeowners that they would be charged no more than their insurance allowed for demolition, which means most of the costs of the $9.4 million program will be borne by federal, state and local taxpayers..."
Tuesday, July 29, 2008
Mike Aguirre continues to win against firms involved in pension mess
Voice of San Diego
by DAVID WASHBURN
July 29, 2008
San Diego City Attorney Michael Aguirre has settled another of his lawsuits against firms retained by the city before and during the pension meltdown.
Orrick, Herrington & Sutcliffe, the city's former bond counsel, has agreed to pay $2.88 million to settle a case filed by Aguirre in 2005, which alleged that the San Francisco-based firm failed the city by not discovering problems with the pension fund sooner.
The city will net $1.88 million from the settlement after paying expenses and a contingency fee to outside lawyers Bryan Vess and Dan Stanford, who assisted in the case, Aguirre said...
To date, Aguirre said he has recovered a net of more than $9 million from outside lawyers, accountants and consultants somehow involved in the pension crisis.
by DAVID WASHBURN
July 29, 2008
San Diego City Attorney Michael Aguirre has settled another of his lawsuits against firms retained by the city before and during the pension meltdown.
Orrick, Herrington & Sutcliffe, the city's former bond counsel, has agreed to pay $2.88 million to settle a case filed by Aguirre in 2005, which alleged that the San Francisco-based firm failed the city by not discovering problems with the pension fund sooner.
The city will net $1.88 million from the settlement after paying expenses and a contingency fee to outside lawyers Bryan Vess and Dan Stanford, who assisted in the case, Aguirre said...
To date, Aguirre said he has recovered a net of more than $9 million from outside lawyers, accountants and consultants somehow involved in the pension crisis.
Monday, July 28, 2008
SEDC board member Chip Owen bilked taxpayers
Owen got $500,000 before joining board
By Jeff McDonald and Helen Gao
San Diego Union Tribune
July 22, 2008
"Three years before he joined the board of the Southeastern Economic Development Corp., Artie “Chip” Owen and a company he managed bought 4.4 acres that they instantly sold to the government agency for a $500,000 profit, records show.
"Caravan Properties LLC bought the property on Market Street near 54th Street in San Diego from Federated Industries Inc. of Chicago for $1.8 million on May 1, 2000.
The transaction was time-stamped 10:59 a.m., the same minute Caravan filed a quitclaim deed transferring ownership to the company and Owen. The subsequent sale from Caravan and Owen to SEDC for $2.3 million also was time-stamped 10:59 a.m.
The transaction was first reported by San Diego blogger and real estate broker Pat Flannery.
Records obtained by The San Diego Union-Tribune show SEDC entered into a purchase and sale agreement with Caravan Properties in April 2000 – before Caravan bought the land from Federated Industries.
Critics questioned the sale. Owen “knew the land and bought it,” said Kathleen MacLeod, who volunteers for a number of community groups. “Why didn't SEDC buy it for $500,000 less?”
Owen... was appointed to the board in February 2003 by then-Mayor Dick Murphy. He currently is the chairman.
The Market Street deal was not his first with the SEDC...
By Jeff McDonald and Helen Gao
San Diego Union Tribune
July 22, 2008
"Three years before he joined the board of the Southeastern Economic Development Corp., Artie “Chip” Owen and a company he managed bought 4.4 acres that they instantly sold to the government agency for a $500,000 profit, records show.
"Caravan Properties LLC bought the property on Market Street near 54th Street in San Diego from Federated Industries Inc. of Chicago for $1.8 million on May 1, 2000.
The transaction was time-stamped 10:59 a.m., the same minute Caravan filed a quitclaim deed transferring ownership to the company and Owen. The subsequent sale from Caravan and Owen to SEDC for $2.3 million also was time-stamped 10:59 a.m.
The transaction was first reported by San Diego blogger and real estate broker Pat Flannery.
Records obtained by The San Diego Union-Tribune show SEDC entered into a purchase and sale agreement with Caravan Properties in April 2000 – before Caravan bought the land from Federated Industries.
Critics questioned the sale. Owen “knew the land and bought it,” said Kathleen MacLeod, who volunteers for a number of community groups. “Why didn't SEDC buy it for $500,000 less?”
Owen... was appointed to the board in February 2003 by then-Mayor Dick Murphy. He currently is the chairman.
The Market Street deal was not his first with the SEDC...
Saturday, July 26, 2008
Dealings of former president Nancy Graham of CCDC to be examined
See all posts re Nancy Graham.
CCDC Chairman Fred Maas wants to conduct an investigation into the business connections of former CCDC president Nancy Graham (left), who resigned on July 24, 2008.
ROB DAVIS of Voice of San Diego wrote on July 25, 2008:
"Fred Maas, the chairman of the Centre City Development Corp.'s board of directors, said today he will seek a "fact-finding mission" to examine the circumstances surrounding former CCDC President Nancy Graham's involvement in the development project at 7th Avenue and Market Street downtown...
"Graham, who resigned Thursday, had previously been a business partner with a sister company of the 7th and Market developer, Related of California. The company, along with CityLink Investment Corp., is leading efforts to build the 41-story, $409-million downtown skyscraper. Under the current terms of the deal, which has not been finalized, the city of San Diego via CCDC will give the developers an $8.7 million subsidy to construct affordable housing in the building...
"Graham's resignation comes eight months after signing a three-year contract with CCDC. She does not get a severance and walks away from more than $496,000 in salary, as the contract set her annual pay at $248,000."
CCDC Chairman Fred Maas wants to conduct an investigation into the business connections of former CCDC president Nancy Graham (left), who resigned on July 24, 2008.ROB DAVIS of Voice of San Diego wrote on July 25, 2008:
"Fred Maas, the chairman of the Centre City Development Corp.'s board of directors, said today he will seek a "fact-finding mission" to examine the circumstances surrounding former CCDC President Nancy Graham's involvement in the development project at 7th Avenue and Market Street downtown...
"Graham, who resigned Thursday, had previously been a business partner with a sister company of the 7th and Market developer, Related of California. The company, along with CityLink Investment Corp., is leading efforts to build the 41-story, $409-million downtown skyscraper. Under the current terms of the deal, which has not been finalized, the city of San Diego via CCDC will give the developers an $8.7 million subsidy to construct affordable housing in the building...
"Graham's resignation comes eight months after signing a three-year contract with CCDC. She does not get a severance and walks away from more than $496,000 in salary, as the contract set her annual pay at $248,000."
Thursday, July 24, 2008
Carolyn Smith of SEDC out
By WILL CARLESS
Voice of San Diego
July 24, 2008
...Carolyn Y. Smith, the embattled president of the Southeastern Economic Development Corp., was forced out of the office she has held for more than 14 years by a unanimous decision of her board Wednesday night.
In a nearly six-hour board meeting that drew dozens of community members and many supporters of Smith, the SEDC trustees ultimately decided to grant Smith a severance package of $100,350 and to bring an end to a tenure that, while supported by some in the community, has been marred by scandal of late.
Smith has been at the center of a maelstrom of publicity since a voiceofsandiego.org story two weeks ago revealed a system of hidden bonuses and extra compensation under which she has paid herself and her staff more than $1 million over the last five years...
Voice of San Diego
July 24, 2008
...Carolyn Y. Smith, the embattled president of the Southeastern Economic Development Corp., was forced out of the office she has held for more than 14 years by a unanimous decision of her board Wednesday night.
In a nearly six-hour board meeting that drew dozens of community members and many supporters of Smith, the SEDC trustees ultimately decided to grant Smith a severance package of $100,350 and to bring an end to a tenure that, while supported by some in the community, has been marred by scandal of late.
Smith has been at the center of a maelstrom of publicity since a voiceofsandiego.org story two weeks ago revealed a system of hidden bonuses and extra compensation under which she has paid herself and her staff more than $1 million over the last five years...
Chip Owen and welfare for the rich
By ANDREW DONOHUE
Voice of San Diego
July 24, 2008
Months after Artie M. "Chip" Owen, now the chairman of the Southeastern Economic Development Corp., earned $500,000 by flipping a piece of property to the agency, he signed over $400,000 of that money to another developer doing business with the agency.
Owen, who joined SEDC's board three years after the land transaction, was listed in public documents and discussion as the sole businessman involved in the land sale and as the manager of the corporation that exacted it, Caravan Properties LLC.
However, shortly after the deal finalized, the lion's share of the earnings shifted to Santa Monica-based Pacific Development Partners LLC, according to documents on file with the County Registrar's Office and SEDC...
Voice of San Diego
July 24, 2008
Months after Artie M. "Chip" Owen, now the chairman of the Southeastern Economic Development Corp., earned $500,000 by flipping a piece of property to the agency, he signed over $400,000 of that money to another developer doing business with the agency.
Owen, who joined SEDC's board three years after the land transaction, was listed in public documents and discussion as the sole businessman involved in the land sale and as the manager of the corporation that exacted it, Caravan Properties LLC.
However, shortly after the deal finalized, the lion's share of the earnings shifted to Santa Monica-based Pacific Development Partners LLC, according to documents on file with the County Registrar's Office and SEDC...
Friday, July 11, 2008
San Diego demonstrates how to win an award for excellence in accounting
David Washburn of Voice of San Diego find that Enron by the Sea made the New York Times again, in an article about "skim funds."
"New Jersey and San Diego had versions of skim funds, and won "excellence in accounting" awards from the Government Finance Officers Association for many years while operating them. Each ended up with far less money in its pension fund than its books showed. The Securities and Exchange Commission found that San Diego had committed securities fraud by overstating the soundness of its pension fund; it is still investigating New Jersey."
"New Jersey and San Diego had versions of skim funds, and won "excellence in accounting" awards from the Government Finance Officers Association for many years while operating them. Each ended up with far less money in its pension fund than its books showed. The Securities and Exchange Commission found that San Diego had committed securities fraud by overstating the soundness of its pension fund; it is still investigating New Jersey."
Wednesday, July 09, 2008
SD City unions prefer secret pension deals; Mike Aguirre opposes them
San Diego City Attorney Mike Aguirre
Metropolitan Employees Association duo Ann Smith-Judie Italiano continue their odd alliances with Republican judges. The alliance began with the billion-dollar pension deal supported by the MEA bosses and former San Diego mayor Dick Murphy. And it continues with Judie/Ann's newly-forged alliance with Jan Goldsmith.
The bizarre alliance is apparently built on the expectation that San Diegans will continue to sacrifice their own well-being and that of their city, and will go back to using the City Attorney's office to cover-up wrongdoing in city government, in order to keep Judie/Ann in power.
And it involves a major flip-flop on the party of candidate Goldsmith. Scott Lewis explains:
The Union Pawns
By Scott Lewis
July 9, 2008
Voice of San Diego
It was rather amusing to see Judge Jan Goldsmith tout his endorsement from the San Diego Municipal Employees Association...
The best radio ad of the campaign season was Mr. Goldsmith's very own takedown of his rivals. Remember, he used a circus theme to paint City Hall as a mess...
[Quote from Jan Goldsmith's radio ad:]
In ring two, see Scott "the wonder pony" Peters jump through hoops, straddle fences and juggle important city issues all to please his labor union handlers.
Now that Goldsmith is the preferred choice of the firefighters union, the police union, and the white-collar City Hall workers, is it no longer so bad to be associated with unions?
Thursday, July 03, 2008
How come people cheat and at the same time claim the moral high ground?
Newsweek's Sharon Begley explains:
"...In a new study that will not exactly restore your faith in human nature, psychologists David DeSteno and Piercarlo Valdesolo of Northeastern University instructed 94 people to assign themselves and a stranger one of two tasks: an easy one, looking for hidden images in a photo, or a hard one, solving math and logic problems...Then everyone was asked, how fairly did you act?, from "extremely unfairly" (1) to "extremely fairly" (7). Next they watched someone else make the assignments, and judged that person's ethics. Selflessness was a virtual no-show: 87 out of 94 people opted for the easy task and gave the next guy the onerous one. Hypocrisy, however, showed up with bells on: every single person who made the selfish choice judged his own behavior more leniently—on average, 4.5 vs. 3.1—than that of someone else who grabbed the easy task for himself...
"...DeSteno said, it may be because "we have this automatic, gut-level instinct to preserve our self-image. In our heart, maybe we're just not as sensitive to our own transgressions." Adds Dan Batson of the University of Kansas, a pioneer in hypocrisy studies, "people have learned that it pays to seem moral, since it lets you avoid censure and guilt. But even better is appearing moral without having to pay the cost of actually being moral"—such as assigning yourself the tough job....
""Since it's a cognitive process, we have volitional control over it," argues DeSteno. That matters because of another nasty aspect of hypocrisy: we apply the same moral relativism when judging the actions of people like ourselves. When "people like us" torture, it's justified; when people unlike us do, it's an atrocity..."
"...In a new study that will not exactly restore your faith in human nature, psychologists David DeSteno and Piercarlo Valdesolo of Northeastern University instructed 94 people to assign themselves and a stranger one of two tasks: an easy one, looking for hidden images in a photo, or a hard one, solving math and logic problems...Then everyone was asked, how fairly did you act?, from "extremely unfairly" (1) to "extremely fairly" (7). Next they watched someone else make the assignments, and judged that person's ethics. Selflessness was a virtual no-show: 87 out of 94 people opted for the easy task and gave the next guy the onerous one. Hypocrisy, however, showed up with bells on: every single person who made the selfish choice judged his own behavior more leniently—on average, 4.5 vs. 3.1—than that of someone else who grabbed the easy task for himself...
"...DeSteno said, it may be because "we have this automatic, gut-level instinct to preserve our self-image. In our heart, maybe we're just not as sensitive to our own transgressions." Adds Dan Batson of the University of Kansas, a pioneer in hypocrisy studies, "people have learned that it pays to seem moral, since it lets you avoid censure and guilt. But even better is appearing moral without having to pay the cost of actually being moral"—such as assigning yourself the tough job....
""Since it's a cognitive process, we have volitional control over it," argues DeSteno. That matters because of another nasty aspect of hypocrisy: we apply the same moral relativism when judging the actions of people like ourselves. When "people like us" torture, it's justified; when people unlike us do, it's an atrocity..."
Tuesday, June 24, 2008
Public Entities fleecing taxpayers to avoid responsibility for wrongdoing
From Voice of San Diego
Letters
All Those Legal Bills
By Tom Adler, San Diego
Tuesday, June 24, 2008
I was delighted to read that the city council has finally come to their senses and has begun to balk about paying for outside consultants.
It does seem a bit ironic however.
During their pension dustup the council members couldn't get enough of them. Council member Jim Madaffer, for instance, had no trouble at all in March 2006 requesting that the taxpayers of this city pay his personal attorney a sum of $327,231. These attorney fees were supposedly incurred to enable Mr. Madaffer to get advice from an attorney as to whether he had violated any laws in regard to the pension debacle. In more than 30 years as a lawyer, I never knew anyone who paid this amount to get advice from an attorney as to whether they had broken the law. He wasn't the only city councilperson to request these outrageous fees. Councilman Brian Maienschein requested $345,000. Councilwoman Toni Atkins requested $365,696.
The other councilpersons were close behind with their requests with the exception of Councilwoman Donna Frye, who not only refused to take taxpayer money but also paid her own attorney fees which amounted to $5,000.
I wonder if a private citizen could have paid these fees, which to this date have been unaccounted for due to the refusal of the city council and mayor to release the records necessary for a full accounting. In any event, the council approved these fees and also fees for the representation of any other city employee who was to be interviewed or deposed. It didn't matter whether or not any of them had been sued or even suspected of wrongdoing. They all received counsel from private attorneys at the taxpayers' expense. At last count, the fees paid for these counseling attorneys was in excess of $3 million.
Maybe if the city had competent council members and skilled employees there would be less need for this continual army of experts who troop through City Hall with their main strength being how to bill.
Letters
All Those Legal Bills
By Tom Adler, San Diego
Tuesday, June 24, 2008
I was delighted to read that the city council has finally come to their senses and has begun to balk about paying for outside consultants.
It does seem a bit ironic however.
During their pension dustup the council members couldn't get enough of them. Council member Jim Madaffer, for instance, had no trouble at all in March 2006 requesting that the taxpayers of this city pay his personal attorney a sum of $327,231. These attorney fees were supposedly incurred to enable Mr. Madaffer to get advice from an attorney as to whether he had violated any laws in regard to the pension debacle. In more than 30 years as a lawyer, I never knew anyone who paid this amount to get advice from an attorney as to whether they had broken the law. He wasn't the only city councilperson to request these outrageous fees. Councilman Brian Maienschein requested $345,000. Councilwoman Toni Atkins requested $365,696.
The other councilpersons were close behind with their requests with the exception of Councilwoman Donna Frye, who not only refused to take taxpayer money but also paid her own attorney fees which amounted to $5,000.
I wonder if a private citizen could have paid these fees, which to this date have been unaccounted for due to the refusal of the city council and mayor to release the records necessary for a full accounting. In any event, the council approved these fees and also fees for the representation of any other city employee who was to be interviewed or deposed. It didn't matter whether or not any of them had been sued or even suspected of wrongdoing. They all received counsel from private attorneys at the taxpayers' expense. At last count, the fees paid for these counseling attorneys was in excess of $3 million.
Maybe if the city had competent council members and skilled employees there would be less need for this continual army of experts who troop through City Hall with their main strength being how to bill.
Sunday, June 15, 2008
Judie Italiano announces that she's MEA's executive-for-life
The San Diego Union Tribune quotes Metropolitan Employees Association general manager Judie Italiano as saying:
"MEA is never, ever, as long as I can draw a breath, endorsing Mike Aguirre."
Well, that's pretty clear. But MEA's lawyer Ann Smith has made it clear that she and former president Judie Italiano are a package deal. Ann Smith "threatened" to resign if Judie were not named general manager.
Judie and Ann are perfect duplicates of California Teachers Association's controlling couple, Carolyn Doggett and Beverly Tucker, the CTA executive director and her lawyer, who also seem to be a package deal.
Well, San Diego, it seems we're in for a long ride with JudieAnn Italismith. We'll have their billion-dollar budget-busting noses in faces, making demands for some time.
"MEA is never, ever, as long as I can draw a breath, endorsing Mike Aguirre."
Well, that's pretty clear. But MEA's lawyer Ann Smith has made it clear that she and former president Judie Italiano are a package deal. Ann Smith "threatened" to resign if Judie were not named general manager.
Judie and Ann are perfect duplicates of California Teachers Association's controlling couple, Carolyn Doggett and Beverly Tucker, the CTA executive director and her lawyer, who also seem to be a package deal.
Well, San Diego, it seems we're in for a long ride with JudieAnn Italismith. We'll have their billion-dollar budget-busting noses in faces, making demands for some time.
Saturday, June 14, 2008
Aguirre has recovered $10 million, more than he's spent in pension lawsuits
Mike Aguirre's campaign for reelection just got a big shot in the arm. His accusers must now admit that his aggressive pursuit of those who defrauded San Diego in the pension scam and related investigations has paid off for the city.
$4.35 million settlement in pension lawsuit
Law firm represented city before the SEC
By Craig Gustafson
San Diego Union Tribune
June 14, 2008
Vinson & Elkins, the Houston-based law firm whose two-year investigation into San Diego's finances was criticized as a whitewash, has agreed to settle with the city for $4.35 million.
The firm would be the fourth to settle lawsuits related to financial and legal troubles from the city practice of increasing employee pension benefits while cutting funding for them.
Settlements
Pension-related settlements:
July 2006: Two auditing firms, Caporicci & Larson and Calderon, Jaham & Osborn, paid $1.65 million total to the city. Calderon conducted the city's annual financial audits, which were later found to contain million of dollars in errors. Caporicci, of Costa Mesa, later bought the firm and denied any wrongdoing by itself or Calderon.
November 2006: San Francisco-based Callan Associates, a pension consultant that advised San Diego's retirement system, agreed to pay $4.5 million to the city. City Attorney Michael Aguirre accused them of faulty investment advice. The firm admitted to no wrongdoing.
City Attorney Michael Aguirre classified the settlement as a victory for his pension-related lawsuits, even though he had sought $10 million.
Vinson & Elkins, which also represented Enron, admitted no wrongdoing but agreed to pay back $3.25 million to the city and forgive $1.1 million in outstanding bills, Aguirre said. The City Council will vote Tuesday on the settlement...
$4.35 million settlement in pension lawsuit
Law firm represented city before the SEC
By Craig Gustafson
San Diego Union Tribune
June 14, 2008
Vinson & Elkins, the Houston-based law firm whose two-year investigation into San Diego's finances was criticized as a whitewash, has agreed to settle with the city for $4.35 million.
The firm would be the fourth to settle lawsuits related to financial and legal troubles from the city practice of increasing employee pension benefits while cutting funding for them.
Settlements
Pension-related settlements:
July 2006: Two auditing firms, Caporicci & Larson and Calderon, Jaham & Osborn, paid $1.65 million total to the city. Calderon conducted the city's annual financial audits, which were later found to contain million of dollars in errors. Caporicci, of Costa Mesa, later bought the firm and denied any wrongdoing by itself or Calderon.
November 2006: San Francisco-based Callan Associates, a pension consultant that advised San Diego's retirement system, agreed to pay $4.5 million to the city. City Attorney Michael Aguirre accused them of faulty investment advice. The firm admitted to no wrongdoing.
City Attorney Michael Aguirre classified the settlement as a victory for his pension-related lawsuits, even though he had sought $10 million.
Vinson & Elkins, which also represented Enron, admitted no wrongdoing but agreed to pay back $3.25 million to the city and forgive $1.1 million in outstanding bills, Aguirre said. The City Council will vote Tuesday on the settlement...
Saturday, June 07, 2008
The Cheryl-Greg connection and a political prosecution
Patsy Fritz seems to agree with me about who approved of the shameful prosecution of Steve Castaneda. The D.A.'s office claimed that Castaneda had intended to buy a certain condo, and that even though he never bought it, the D.A.'s office believed that Castaneda lied about wanting to buy it. San Diego's district attorney charged a man with a dozen or so felonies based on the apparent ability to read his mind. San Diego needs a new district attorney.
[Photos: Cheryl Cox on left, Bonnie Dumanis far right]
Here is a well-written message I found on the San Diego Growth Blog:
"What we have here, I think, is the effort to curry favor by Dumanis, and the Supes' quid-pro-quo for her support during their election campaigns.
"...I have wondered why the Lincoln Club and Republican Central Committee are not shown as "friends of the court" in O'Toole's capers. I see this as Bonnie sucking up not only to the Supes, but to the downtown Republican establishment. She's been a Republican for some time (prior to her first race for DA) but for obvious reasons needs to burnish her Republican rep to get the downtown establishment's support.
"I truly regret the time, $$$ and effort I put into that race, garnering votes in North County for Dumanis. I was S0 idealistic about Bonnie, but she's turned into just another run-of-the mill influence peddler - for her own interests. Sad! She could have been a real force for ethics and reform!"
...Patsy
Solengo Capital wants Dealbreaker.com to keep Solengo prospectus secret
Harvard's Citizen Media Law Project reports:
Solengo Capital Advisors v. Dealbreaker.com
Posted June 6th, 2008 by David Ardia
Threat type: LawsuitDate: 03/30/2007
Subject Area(s): Copyright
PartiesParty Issuing Threat:
Solengo Capital Advisors ULC
Party Receiving Threat:
Dealbreaker, Elizabeth Spiers, John Carney, Bess Levin, John Doe and Jane DoeType of Threatening Party:
Organization
Description:
Dealbreaker.com, a website that describes itself as "an online business tabloid and Wall Street gossip site," was sued for copyright infringement by Solengo Capital, a hedge fund founded by former Amaranth Advisors traders, over Dealbreaker's posting of Solengo's prospectus, which contained information about the firm's planned structure, trading and risk management platforms, and biographies of its founders.
In response to Solengo's initial threat to file a lawsuit on March 28, 2007, editors at Dealbreaker said the materials were of legitimate news value and refused to remove them, telling Reuters:
"We think it's valuable to our readers and the public to be able to see the information in it," said John Carney, DealBreaker editor, in an interview on Friday.
The legal dust-up is the latest stemming from the abrupt implosion of $9.3 billion hedge fund Amaranth last year, which shocked investors and raised awareness of hedge fund risk. The recent founding of Solengo by some of the energy traders blamed for the $6 billion in losses that caused the Amaranth collapse has also generated controversy.
Carney, a former corporate lawyer, said his site plans to contest any legal challenge. "We're willing to take it as far as it merits. I don't expect to defy a court order or go to jail for it, however."
On March 30, 2007, Solengo sought a preliminary injunction ordering Dealbreaker to remove the prospectus from its website. After the court denied the injunction request, Solengo filed a complaint alleging copyright infringement against the website and several of its editors.
On April 2, 2007, the court issued a preliminary injunction on consent of the parties, requiring Dealbreaker to remove the prospectus pending the outcome of the litigation. On May 24, 2007, Dealbreaker filed a motion to dismiss, arguing that Solengo had failed to register its copyright in the prospectus prior to filing suit.
In August 2007, the parties reached a settlement, and the prospectus appears to have been permanently removed from the Dealbreaker site.
Solengo Capital Advisors v. Dealbreaker.com
Posted June 6th, 2008 by David Ardia
Threat type: LawsuitDate: 03/30/2007
Subject Area(s): Copyright
PartiesParty Issuing Threat:
Solengo Capital Advisors ULC
Party Receiving Threat:
Dealbreaker, Elizabeth Spiers, John Carney, Bess Levin, John Doe and Jane DoeType of Threatening Party:
Organization
Description:
Dealbreaker.com, a website that describes itself as "an online business tabloid and Wall Street gossip site," was sued for copyright infringement by Solengo Capital, a hedge fund founded by former Amaranth Advisors traders, over Dealbreaker's posting of Solengo's prospectus, which contained information about the firm's planned structure, trading and risk management platforms, and biographies of its founders.
In response to Solengo's initial threat to file a lawsuit on March 28, 2007, editors at Dealbreaker said the materials were of legitimate news value and refused to remove them, telling Reuters:
"We think it's valuable to our readers and the public to be able to see the information in it," said John Carney, DealBreaker editor, in an interview on Friday.
The legal dust-up is the latest stemming from the abrupt implosion of $9.3 billion hedge fund Amaranth last year, which shocked investors and raised awareness of hedge fund risk. The recent founding of Solengo by some of the energy traders blamed for the $6 billion in losses that caused the Amaranth collapse has also generated controversy.
Carney, a former corporate lawyer, said his site plans to contest any legal challenge. "We're willing to take it as far as it merits. I don't expect to defy a court order or go to jail for it, however."
On March 30, 2007, Solengo sought a preliminary injunction ordering Dealbreaker to remove the prospectus from its website. After the court denied the injunction request, Solengo filed a complaint alleging copyright infringement against the website and several of its editors.
On April 2, 2007, the court issued a preliminary injunction on consent of the parties, requiring Dealbreaker to remove the prospectus pending the outcome of the litigation. On May 24, 2007, Dealbreaker filed a motion to dismiss, arguing that Solengo had failed to register its copyright in the prospectus prior to filing suit.
In August 2007, the parties reached a settlement, and the prospectus appears to have been permanently removed from the Dealbreaker site.
Friday, May 23, 2008
Shut up, Scott Peters
Voice of San Diego
Goldsmith Scolds Peters
Judge Jan Goldsmith today took Council President Scott Peters to task for calling on the district attorney and the Attorney General's Office to investigate alleged "criminal extortion" by incumbent City Attorney Mike Aguirre.
"I want to put a stop to this. This is wrong, it's wrong if it's against Aguirre, it's wrong if it's against anyone else," Goldsmith said.
Peters called on District Attorney Bonnie Dumanis to investigate the claims against Aguirre, which first surfaced in a report released Tuesday by the Attorney General's Office...
Dumanis has since said she won't conduct an investigation because she has endorsed Goldsmith for city attorney. It's also doubtful that what Aguirre is accused to have done would constitute criminal extortion anyway, as I explained in this post earlier this week.
Goldsmith said that Peters needs to stay out of it. He said the Attorney General's Office has all the evidence it needs to come to its own conclusions about whether to investigate the "extortion."
"They're professionals, if they believe there's probable cause, they can pursue it," he said.
-- WILL CARLESS
Friday, May 23, 2008
Goldsmith Scolds Peters
Judge Jan Goldsmith today took Council President Scott Peters to task for calling on the district attorney and the Attorney General's Office to investigate alleged "criminal extortion" by incumbent City Attorney Mike Aguirre.
"I want to put a stop to this. This is wrong, it's wrong if it's against Aguirre, it's wrong if it's against anyone else," Goldsmith said.
Peters called on District Attorney Bonnie Dumanis to investigate the claims against Aguirre, which first surfaced in a report released Tuesday by the Attorney General's Office...
Dumanis has since said she won't conduct an investigation because she has endorsed Goldsmith for city attorney. It's also doubtful that what Aguirre is accused to have done would constitute criminal extortion anyway, as I explained in this post earlier this week.
Goldsmith said that Peters needs to stay out of it. He said the Attorney General's Office has all the evidence it needs to come to its own conclusions about whether to investigate the "extortion."
"They're professionals, if they believe there's probable cause, they can pursue it," he said.
-- WILL CARLESS
Friday, May 23, 2008
Thursday, May 22, 2008
A reminder of odd bedfellows (unions and Republicans) created by the pension crisis
Why did unions in San Diego support Republican Brian Maienschein for the City Council? It was a match made when Republican Mayor Dick Murphy made his pact with city unions that unions would be granted extremely generous pension benefits in return for helping cover up the fact that the pension system was underfunded. Today I saw a reminder of the bizarreness of these strange bedfellows:
Voice of San Diego
by Scott Lewis
Link
You might remember my discussion of the potential awkwardness that would come up when Brian Maienschein funded his city attorney campaign.
To refresh, he's going to use the stash of funds left over from his 2004 campaign for City Council. Today the city clerk posted his latest financial disclosures and sure enough, the transfer is complete. Now, all those donors to his 2004 campaign are listed, essentially, as donors to his city attorney campaign...
One of them listed, for example, is attorney Karen Heumann. She, of course, is now one of the most important people in City Attorney Mike Aguirre's administration.
The second name that really stood out was Tony Krvaric -- the head of the Republican Party of San Diego County. It's fair to say Krvaric is not a supporter of Maienschein's bid for city attorney...
Ironic that Krvaric might have helped pay for that mailer.
The list of people who also are now funding Maienschein's city attorney campaign includes Murray Galinson, who is actually counted as a supporter of Scott Peters.
The list itself is a who's who:
Jerry Butkiewicz, who until recently was the Secretary-Treasurer of the San Diego Imperial Counties Labor Council...
Fred Sainz, the mayor's spokesman
Judie Italiano, general manager of the city employees' white collar union
City Councilman Kevin Faulconer
Phil Thalheimer, who's running for City Council District 1
Ronne Froman, the former COO of the city
Joe Craver, the head of the local Red Cross...
Voice of San Diego
by Scott Lewis
Link
You might remember my discussion of the potential awkwardness that would come up when Brian Maienschein funded his city attorney campaign.
To refresh, he's going to use the stash of funds left over from his 2004 campaign for City Council. Today the city clerk posted his latest financial disclosures and sure enough, the transfer is complete. Now, all those donors to his 2004 campaign are listed, essentially, as donors to his city attorney campaign...
One of them listed, for example, is attorney Karen Heumann. She, of course, is now one of the most important people in City Attorney Mike Aguirre's administration.
The second name that really stood out was Tony Krvaric -- the head of the Republican Party of San Diego County. It's fair to say Krvaric is not a supporter of Maienschein's bid for city attorney...
Ironic that Krvaric might have helped pay for that mailer.
The list of people who also are now funding Maienschein's city attorney campaign includes Murray Galinson, who is actually counted as a supporter of Scott Peters.
The list itself is a who's who:
Jerry Butkiewicz, who until recently was the Secretary-Treasurer of the San Diego Imperial Counties Labor Council...
Fred Sainz, the mayor's spokesman
Judie Italiano, general manager of the city employees' white collar union
City Councilman Kevin Faulconer
Phil Thalheimer, who's running for City Council District 1
Ronne Froman, the former COO of the city
Joe Craver, the head of the local Red Cross...
Tuesday, May 06, 2008
Greg Cox fails to address question of tipster in Steve Castaneda case
Bob Castaneda, the brother of Chula Vista Councilman Steve Castaneda, raised important questions about the two prosecutions carried out by the San Diego District Attorney's Public Integrity Unit.
Bonnie Dumanis appointed Peter O'Toole to bring in two political opponents of Chula Vista mayor Cheryl Cox for questioning. Both of them were charged with lying during these odd investigations. How did these investigations get initiated? Why were two men prosecuted for felony perjury even though the investigations uncovered no crimes?
Why has a complaint about Cheryl Cox and her agents been ignored by the Special Operations department?
I can tell you who was the tipster in that matter. I was!
Supervisor Greg Cox has written a letter that does absolutely nothing to answer the questions that have been raised. Of course Cox protests that he has done nothing wrong. But how will he restore the credibility of the District Attorney's office? He makes no effort to do so.
Here is a comparison of the letters by Bob Castaneda and Greg Cox.
The question remains: was the PIU tipster a friend of Cheryl and Greg Cox?
The answer seems sort of obvious, doesn't it?
Bonnie Dumanis appointed Peter O'Toole to bring in two political opponents of Chula Vista mayor Cheryl Cox for questioning. Both of them were charged with lying during these odd investigations. How did these investigations get initiated? Why were two men prosecuted for felony perjury even though the investigations uncovered no crimes?
Why has a complaint about Cheryl Cox and her agents been ignored by the Special Operations department?
I can tell you who was the tipster in that matter. I was!
Supervisor Greg Cox has written a letter that does absolutely nothing to answer the questions that have been raised. Of course Cox protests that he has done nothing wrong. But how will he restore the credibility of the District Attorney's office? He makes no effort to do so.
Here is a comparison of the letters by Bob Castaneda and Greg Cox.
The question remains: was the PIU tipster a friend of Cheryl and Greg Cox?
The answer seems sort of obvious, doesn't it?
Sunday, May 04, 2008
San Diego public entities misuse their human resources--and their financial resources
OCEANSIDE: Judge says city discriminated against former employee
By CRAIG TENBROECK
April 29, 2008
OCEANSIDE ---- A Superior Court judge has upbraided the city of Oceanside for wrongfully firing a police department employee with an immune system disorder, saying there was no excuse for her to have been "so badly mistreated."
"This court has not seen such lack of civility and simple common decency in quite a long time," Judge Michael Orfield said last week in a tentative ruling that described the 2006 firing.
"The plaintiff was not being removed for incompetence, for violation of rules or a breach of trust," he said. "She was being removed from a 12-year career because of a perceived medical condition that (without the slightest confirmation) was without the possibility of accommodation."
Orfield concluded that the city discriminated against the employee, Michele Morgans, and should pay damages of $628,000.
Morgans worked as a field evidence technician for the police department.
The judge's ruling came after a 15-day trial at the Vista courthouse...
Morgans, 50, said in a telephone interview Tuesday that the ruling vindicated her.
"There's nothing worse than having an illness or something you can't control," said Morgans. "But to get fired because the city doesn't like it was heartbreaking."
City Attorney John Mullen said Tuesday that the City Council will meet in closed session as early as next week to discuss its options...
In 1999, Morgans was diagnosed with Graves' Disease, a type of autoimmune disorder that causes overactivity of the thyroid gland. In Morgans' case, it involved swelling of the tissues in her eye socket, requiring multiple surgeries.
She filed a worker's compensation claim against the city in 2003, saying that on-the-job stress over the death of Officer Tony Zeppetella aggravated her condition. Zeppetella was fatally shot June 13, 2003, while making a traffic stop. Morgans participated in the officer's autopsy.
The city contested Morgans' worker's compensation claim, but she prevailed in late 2005.
Shortly after that, the city decided Morgans could no longer be a field evidence technician because that job was inherently stressful, Mullen said. When the city offered her other jobs, she declined.
Daniel Carroll, Morgans' attorney, said the positions that the city offered paid less than she was making as an evidence technician...
"The only accommodations she needed were the ability to come in late when she had a headache, and if they had another situation, like an officer-involved shooting, don't send her to the autopsy," he said.
On Jan. 10, 2006, the city placed her on administrative leave and told her to stay away from city facilities. She was eventually fired.
Orfield said the strong tone of his tentative ruling was deliberate.
"It is meant to convey to the powers that be within the city the need to go back to the drawing board and rethink how they should handle similar situations in the future," he said.
The city's police department has a history of expensive litigation. Several years ago, Terry Johnson, Oceanside's mayor at the time, requested a report analyzing legal expenses for the department.
The report showed that from 1992 to 2002, the city spent about $5.87 million on litigation involving the police department...
By CRAIG TENBROECK
April 29, 2008
OCEANSIDE ---- A Superior Court judge has upbraided the city of Oceanside for wrongfully firing a police department employee with an immune system disorder, saying there was no excuse for her to have been "so badly mistreated."
"This court has not seen such lack of civility and simple common decency in quite a long time," Judge Michael Orfield said last week in a tentative ruling that described the 2006 firing.
"The plaintiff was not being removed for incompetence, for violation of rules or a breach of trust," he said. "She was being removed from a 12-year career because of a perceived medical condition that (without the slightest confirmation) was without the possibility of accommodation."
Orfield concluded that the city discriminated against the employee, Michele Morgans, and should pay damages of $628,000.
Morgans worked as a field evidence technician for the police department.
The judge's ruling came after a 15-day trial at the Vista courthouse...
Morgans, 50, said in a telephone interview Tuesday that the ruling vindicated her.
"There's nothing worse than having an illness or something you can't control," said Morgans. "But to get fired because the city doesn't like it was heartbreaking."
City Attorney John Mullen said Tuesday that the City Council will meet in closed session as early as next week to discuss its options...
In 1999, Morgans was diagnosed with Graves' Disease, a type of autoimmune disorder that causes overactivity of the thyroid gland. In Morgans' case, it involved swelling of the tissues in her eye socket, requiring multiple surgeries.
She filed a worker's compensation claim against the city in 2003, saying that on-the-job stress over the death of Officer Tony Zeppetella aggravated her condition. Zeppetella was fatally shot June 13, 2003, while making a traffic stop. Morgans participated in the officer's autopsy.
The city contested Morgans' worker's compensation claim, but she prevailed in late 2005.
Shortly after that, the city decided Morgans could no longer be a field evidence technician because that job was inherently stressful, Mullen said. When the city offered her other jobs, she declined.
Daniel Carroll, Morgans' attorney, said the positions that the city offered paid less than she was making as an evidence technician...
"The only accommodations she needed were the ability to come in late when she had a headache, and if they had another situation, like an officer-involved shooting, don't send her to the autopsy," he said.
On Jan. 10, 2006, the city placed her on administrative leave and told her to stay away from city facilities. She was eventually fired.
Orfield said the strong tone of his tentative ruling was deliberate.
"It is meant to convey to the powers that be within the city the need to go back to the drawing board and rethink how they should handle similar situations in the future," he said.
The city's police department has a history of expensive litigation. Several years ago, Terry Johnson, Oceanside's mayor at the time, requested a report analyzing legal expenses for the department.
The report showed that from 1992 to 2002, the city spent about $5.87 million on litigation involving the police department...
Thursday, May 01, 2008
Why wasn't Bonnie Dumanis' Public Integrity Unit interested in this case?
Voice of San Diego
DA Won't Prosecute Tom Story
So the charges have been formally dismissedagainst former Sunroad executive Tom Story, and District Attorney Bonnie Dumanis has released a statement saying she won't be bringing charges either.
A recap: Story was the former city official who was hired by Sunroad Enterprises and then became embroiled in the scandal over a building in Kearny Mesa that violated Federal Aviation Authority guidelines. Story was charged with violating lobbying laws by City Attorney Mike Aguirre.
But Aguirre was thrown off the case because a judge ruled he had violated ethical rules. That has left the prosecution of Story in something of a legal limbo.
Earlier this month, District Attorney Bonnie Dumanis released a statement saying that she would at least consider bringing charges against Story. Now, Dumanis states that her office does not have jurisdiction to bring charges against Story.
There is one other way Story could be charged. Earlier this month, apparently on the advice of Dumanis, Mayor Jerry Sanders asked the City Council to consider hiring a special prosecutor to go after Story.
The City Council reached a deadlock, voting 4-4, which meant that no special prosecutor was appointed.
Story, it seems, is free to go about his business.
-- WILL CARLESS
April 30, 2008
http://www.voiceofsandiego.org/articles/2008/05/01/this_just_in/209story043008.txt
DA Won't Prosecute Tom Story
So the charges have been formally dismissedagainst former Sunroad executive Tom Story, and District Attorney Bonnie Dumanis has released a statement saying she won't be bringing charges either.
A recap: Story was the former city official who was hired by Sunroad Enterprises and then became embroiled in the scandal over a building in Kearny Mesa that violated Federal Aviation Authority guidelines. Story was charged with violating lobbying laws by City Attorney Mike Aguirre.
But Aguirre was thrown off the case because a judge ruled he had violated ethical rules. That has left the prosecution of Story in something of a legal limbo.
Earlier this month, District Attorney Bonnie Dumanis released a statement saying that she would at least consider bringing charges against Story. Now, Dumanis states that her office does not have jurisdiction to bring charges against Story.
There is one other way Story could be charged. Earlier this month, apparently on the advice of Dumanis, Mayor Jerry Sanders asked the City Council to consider hiring a special prosecutor to go after Story.
The City Council reached a deadlock, voting 4-4, which meant that no special prosecutor was appointed.
Story, it seems, is free to go about his business.
-- WILL CARLESS
April 30, 2008
http://www.voiceofsandiego.org/articles/2008/05/01/this_just_in/209story043008.txt
Monday, April 28, 2008
Voice of San Diego reports scientific discovery by Sal D'Anna
VOSD comments on April 24, 2008 letter "C'mon Mary":
...19. Sal D'Anna wrote on April 26, 2008 7:01 PM:
"Research has led to discovery of heaviest element known to science. The new element,Governmentium(Gv), has one neutron, 25 assistant neutrons, 88 deputy neutrons, and 198 assistant deputy neutrons, atomic mass=312.
Particles are held together by forces called morons,which are surrounded by lepton-like particles called peons.
Since Governmentium has no electrons,it is inert; however,it can be detected,because it impedes every action that it comes into contact.
Governmentium has a normal half-life of 2-6 years; it does not decay, but instead undergoes a reorganization where a portion of the assistant and deputy neutrons exchange places. In fact, Governmentium's mass will actually increase over time, since each reorganization will cause more morons to become neutrons,forming isodopes.
This characteristic of moron promotion leads some scientists to believe that Governmentium is formed whenever morons reach a critical concentration. This hypothetical state is referred to as critical morass which Researchers describe as San Diego at this time."
http://www.voiceofsandiego.org/articles/2008/04/28/letters/624mary042408.txt#info
...19. Sal D'Anna wrote on April 26, 2008 7:01 PM:
"Research has led to discovery of heaviest element known to science. The new element,Governmentium(Gv), has one neutron, 25 assistant neutrons, 88 deputy neutrons, and 198 assistant deputy neutrons, atomic mass=312.
Particles are held together by forces called morons,which are surrounded by lepton-like particles called peons.
Since Governmentium has no electrons,it is inert; however,it can be detected,because it impedes every action that it comes into contact.
Governmentium has a normal half-life of 2-6 years; it does not decay, but instead undergoes a reorganization where a portion of the assistant and deputy neutrons exchange places. In fact, Governmentium's mass will actually increase over time, since each reorganization will cause more morons to become neutrons,forming isodopes.
This characteristic of moron promotion leads some scientists to believe that Governmentium is formed whenever morons reach a critical concentration. This hypothetical state is referred to as critical morass which Researchers describe as San Diego at this time."
http://www.voiceofsandiego.org/articles/2008/04/28/letters/624mary042408.txt#info
Friday, April 25, 2008
Who is feeding tips to Bonnie Dumanis' Public Integrity Unit?
Lots of people want to know who contaminated Todd Sommer's tissue samples with arsenic and caused Cynthia Sommer to spend over two years in jail in San Diego for a murder that apparently never happened. This is important to know, but it was a freak occurrence, not part of a pattern.
We are seeing a pattern in another part of San Diego District Attorney Bonnie Dumanis' office: the Public Integrity Unit.
I'm interested to know who has been playing puppet master to Bonnie Dumanis.
Who is it who manages to get Patrick O'Toole's Public Integrity Unit to investigate Cheryl Cox's political opponents, then charge them with perjury during those investigations when O'Toole can't find anything more serious to charge them with?
I have an idea of who it might be.
I suspect it's the same person who got the County Grand Jury to investigate Proposition 227 compliance at Castle Park Elementary School at a time when crimes were being covered up at the school.
I reported those crimes to Supervisor Greg Cox. The only response from the county was the grand jury investigation.
I believe the District Attorney either got a direct "suggestion" from Greg Cox regarding all three of these investigations, or at least got a "go ahead" from Mr. Cox after one of his wife's associates came to the D.A. with a "tip."
And who might this other tipster be? My list of possibilities starts with Bob Watkins of Lincoln Club and San Diego County Office of Education fame, who has been endorsed by Cheryl Cox in his run for Duncan Hunter's seat.
We are seeing a pattern in another part of San Diego District Attorney Bonnie Dumanis' office: the Public Integrity Unit.
I'm interested to know who has been playing puppet master to Bonnie Dumanis.
Who is it who manages to get Patrick O'Toole's Public Integrity Unit to investigate Cheryl Cox's political opponents, then charge them with perjury during those investigations when O'Toole can't find anything more serious to charge them with?
I have an idea of who it might be.
I suspect it's the same person who got the County Grand Jury to investigate Proposition 227 compliance at Castle Park Elementary School at a time when crimes were being covered up at the school.
I reported those crimes to Supervisor Greg Cox. The only response from the county was the grand jury investigation.
I believe the District Attorney either got a direct "suggestion" from Greg Cox regarding all three of these investigations, or at least got a "go ahead" from Mr. Cox after one of his wife's associates came to the D.A. with a "tip."
And who might this other tipster be? My list of possibilities starts with Bob Watkins of Lincoln Club and San Diego County Office of Education fame, who has been endorsed by Cheryl Cox in his run for Duncan Hunter's seat.
Tuesday, April 22, 2008
San Diego County Supervisor Dianne Jacob is being bullied
County Supervisor Dianne Jacob recently published an essay in Voice of San Diego. She wrote:
"I was sued by the owner of the Los Angeles Times for speaking my mind about the business practices of one his companies, ironic because people involved in journalism are usually fierce defenders of free speech. Sam Zell’s Manufactured Home Communities--now operating under the name Equity Lifestyle Properties, Inc.-- owns and operates more than 300 mobile home parks in 28 states, including four parks in the district I represent. At first, it was difficult to take Zell or his lawsuit seriously. There’s something amusing about being sued for defamation by an individual who calls himself the “grave dancer"...” I am convinced that Zell is using our judicial system to bully me and intimidate those who dare question how MHC treats its customers..."
I think too many people are terrified of being sued. Being sued is really not so bad. I should know; I'm being sued for defamation by Stutz, Artiano, Shinoff & Holtz. My friends greet me with creased foreheads and downturned mouths when they ask me how I am. I'm fine.
What is terrible is that many people are silent about wrongdoing for fear of being sued. It seems to me that some people (like the partners at Stutz Artiano Shinoff & Holtz, who are suing me in their spare time, when they are not too busy campaigning against lawsuit abuse) are trying to turn our entire society into a place where criminals rule the roost and witnesses are afraid to testify.
Elly Dotseth is concerned about Dianne Jacob and all who speak out. Elly wrote a letter to Voice of San Diego on April 16, 2008 saying:
"...people in our supposedly free country have begun to keep quiet from fear of being sued or blackballed in some other way. I have recently spoken out in criticism of the way the NTC Foundation is handling leases with nonprofit arts groups, and despite the reply from the director, I stand by my criticism. If he were to sue me, though, that would really be horrific."
Here is my response to Elly:
Kudos for standing up to the McMillin/NTC Foundation, and please be assured that it is not so bad getting sued when you have nothing to hide and the big guys that are suing you have plenty to hide. You simply file an answer, then go down to the courthouse and get a deposition subpoena that has been signed by the Clerk of the Court. Make some copies, fill them out, and serve them on the people who are suing you. They filed the lawsuit, so they had better be prepared to testify under oath and produce documents. If they fail to do so, you file a motion to compel that looks something like THIS.
"I was sued by the owner of the Los Angeles Times for speaking my mind about the business practices of one his companies, ironic because people involved in journalism are usually fierce defenders of free speech. Sam Zell’s Manufactured Home Communities--now operating under the name Equity Lifestyle Properties, Inc.-- owns and operates more than 300 mobile home parks in 28 states, including four parks in the district I represent. At first, it was difficult to take Zell or his lawsuit seriously. There’s something amusing about being sued for defamation by an individual who calls himself the “grave dancer"...” I am convinced that Zell is using our judicial system to bully me and intimidate those who dare question how MHC treats its customers..."
I think too many people are terrified of being sued. Being sued is really not so bad. I should know; I'm being sued for defamation by Stutz, Artiano, Shinoff & Holtz. My friends greet me with creased foreheads and downturned mouths when they ask me how I am. I'm fine.
What is terrible is that many people are silent about wrongdoing for fear of being sued. It seems to me that some people (like the partners at Stutz Artiano Shinoff & Holtz, who are suing me in their spare time, when they are not too busy campaigning against lawsuit abuse) are trying to turn our entire society into a place where criminals rule the roost and witnesses are afraid to testify.
Elly Dotseth is concerned about Dianne Jacob and all who speak out. Elly wrote a letter to Voice of San Diego on April 16, 2008 saying:
"...people in our supposedly free country have begun to keep quiet from fear of being sued or blackballed in some other way. I have recently spoken out in criticism of the way the NTC Foundation is handling leases with nonprofit arts groups, and despite the reply from the director, I stand by my criticism. If he were to sue me, though, that would really be horrific."
Here is my response to Elly:
Kudos for standing up to the McMillin/NTC Foundation, and please be assured that it is not so bad getting sued when you have nothing to hide and the big guys that are suing you have plenty to hide. You simply file an answer, then go down to the courthouse and get a deposition subpoena that has been signed by the Clerk of the Court. Make some copies, fill them out, and serve them on the people who are suing you. They filed the lawsuit, so they had better be prepared to testify under oath and produce documents. If they fail to do so, you file a motion to compel that looks something like THIS.
Tuesday, April 08, 2008
Dumanis: This prosecution is too bizarre to be anything other than politically motivated
Chula Vista City Councilman Steve Castaneda goes on trial today in the second politically-motivated prosecution out of a total of two prosecutions by the secretive "Public Integrity Unit" formed by San Diego District Attorney Bonnie Dumanis and the recently low-profile Patrick O'Toole.
Prosecutor Patrick O'Toole was unable to find any crime committed by Castaneda, so he charged him with lying during the investigation about whether or not he intended to buy a condo.
In April 2007, the Public Integrity Unit began prosecuting political opponents of Cheryl Cox. Patrick O'Toole, who had previously been appointed as US Attorney for San Diego by Attorney General John Ashcroft, headed the unit.
O'Toole prosecuted a staffer for mayor Steven Padilla who had taken two hours off work in an effort to get a photograph of Cheryl Cox with her disgraced family friend David Malcolm at a twilight yacht party fundraiser for Cox. The staffer was charged with five felony counts of perjury for telling a grand jury that he filled out his leave slip from work before rather than after he took off from his job at the City of Chula Vista. He pled guilty to lesser charges as part of a plea deal.
The now-dormant unit ended its active phase with a second and final prosecution, that of Steve Castaneda, who had run against Cheryl Cox for mayor.
Castaneda was prosecuted for allegedly lying about whether he planned to buy a condo, even though he never bought the condo in question.
According to the San Diego Union Tribune, "Castaneda was a tenant at the complex and was accused of seeking favors, such as free rent, from Sunbow owner Ash Israni, according to the 1,200-page grand jury transcript. The investigation found that Castaneda paid his rent and didn't ask for special treatment. O'Toole told the grand jury the perjury charges are warranted because Castaneda should be held accountable for 'lying about the facts'; even if no crime was uncovered...Castaneda has been vocal about O'Toole's investigations, saying they are politically motivated. He contended that Dumanis conspired with Chula Vista Mayor Cheryl Cox, his political rival in the 2006 mayoral primary."
"DA unit works as quietly as it began"
"Trial and Re-election bid could coincide"
Prosecutor Patrick O'Toole was unable to find any crime committed by Castaneda, so he charged him with lying during the investigation about whether or not he intended to buy a condo.
In April 2007, the Public Integrity Unit began prosecuting political opponents of Cheryl Cox. Patrick O'Toole, who had previously been appointed as US Attorney for San Diego by Attorney General John Ashcroft, headed the unit.
O'Toole prosecuted a staffer for mayor Steven Padilla who had taken two hours off work in an effort to get a photograph of Cheryl Cox with her disgraced family friend David Malcolm at a twilight yacht party fundraiser for Cox. The staffer was charged with five felony counts of perjury for telling a grand jury that he filled out his leave slip from work before rather than after he took off from his job at the City of Chula Vista. He pled guilty to lesser charges as part of a plea deal.
The now-dormant unit ended its active phase with a second and final prosecution, that of Steve Castaneda, who had run against Cheryl Cox for mayor.
Castaneda was prosecuted for allegedly lying about whether he planned to buy a condo, even though he never bought the condo in question.
According to the San Diego Union Tribune, "Castaneda was a tenant at the complex and was accused of seeking favors, such as free rent, from Sunbow owner Ash Israni, according to the 1,200-page grand jury transcript. The investigation found that Castaneda paid his rent and didn't ask for special treatment. O'Toole told the grand jury the perjury charges are warranted because Castaneda should be held accountable for 'lying about the facts'; even if no crime was uncovered...Castaneda has been vocal about O'Toole's investigations, saying they are politically motivated. He contended that Dumanis conspired with Chula Vista Mayor Cheryl Cox, his political rival in the 2006 mayoral primary."
"DA unit works as quietly as it began"
"Trial and Re-election bid could coincide"
Note to Bonnie Dumanis: This is how you conduct an investigation
Today in Finance for April 8, 2008
SEC Charges Five Ex-Officials in San Diego Muni Fraud
Commission Chairman Christopher Cox has cited the city government's scandal as a reason to expand the SEC's regulatory powers over municipal bonds.
http://www.cfo.com/article.cfm/11002450/c_10999584?f=home_todayinfinance&x=1
Stephen Taub
CFO.com | US
April 8, 2008
The Securities and Exchange Commission has filed civil fraud charges against five former San Diego city officials—mostly finance professionals—for their roles in the city’s financial crisis in 2002 and 2003.
The SEC charged the individuals for failing to disclose to investors buying the city’s municipal bonds that there were funding problems with San Diego's pension and retiree health care obligations and those liabilities had put the city in financial peril.
advertisement The five named were former city manager Michael Uberuaga, former city treasurer Mary Vattimo, former auditor an comptroller Edward Ryan, former deputy city manager of finance Patricia Frazier, and former assistant auditor & comptroller Teresa Webster.
"The facts will clearly demonstrate that all city officials and staff members acted with good faith and honest intention with regard to the bond offerings by the city of San Diego," stated Webster's attorney, Frank Vecchione. "At no time did Terri Webster act inappropriately or with intent to deceive any potential investor. The time has come to put the misperceptions and misrepresentations regarding Ms. Webster and these bonds to rest. We intend to do so."
Frazier's attorney could not be reached at presstime. Lawyers for the remaining three former officials did not return phone calls from CFO.com.
In the fraud complaint filed by the SEC on Monday, the commission charges that the five former San Diego officials knew that the city had been intentionally underfunding its pension obligations so that it could increase pension benefits while deferring the costs. The officials were allegedly aware that the city would face severe difficulty funding its future pension and retiree health care obligations unless it raised new revenues or pension and health care benefits or city services were cut.
The SEC alleges the ex-officials knew that the city’s unfunded pension liability was projected to grow dramatically from $284 million at the beginning of fiscal year 2002 to an estimated $2 billion by 2009 and that the city’s liability for retiree health care was another estimated $1.1 billion. But the officials failed to disclose those and other material facts in bond-offering documents and continuing disclosures, it added.
In a speech, SEC Chairman Christopher Cox has cited securities fraud within San Diego's city government in those years as a rationale for extending the commission's regulatory powers over municipal bonds. "While the SEC has anti-fraud authority -- allowing us to come in and clean up messes like [San Diego] after the fact," he said in a July 2007 speech, neither the SEC nor any other federal regulator can compel the municipal bond market to make the same sorts of disclosures that the SEC requires in the corporate securities market. "It's a basic common-sense consumer protection that is way overdue," Cox said at the time, calling for legislation giving the SEC "limited powers" to assure transparency in muni offering.
In its current complaint, the SEC alleges that Uberuaga signed the closing letter for one of the bond offerings, falsely certifying that it was accurate and did not contain any misleading statements. Ryan signed letters falsely representing that the city’s audited financials included in the securities offerings were accurate, the regulator alleged.
The commission also charged that Frazier regularly reviewed and revised the false and misleading disclosure documents and signed the closing letter for two out of a total five bond offerings relevant to the case. She falsely certified the disclosures as accurate and did not contain any misleading statements reviewed and made presentations to the rating agencies, the SEC alleged.
Webster reviewed city financials that contained some of the false and misleading disclosures, the commission charged, alleging that Vattimo took part in drafting the city’s false and misleading disclosures. Vattimo and Webster both allegedly knew that in 2003, the rating agencies had concerns about the city’s growing pension burdens and that those obligations could hurt the city’s credit rating. "Nevertheless, they withheld material facts from the rating agencies," the SEC added.
The SEC previously issued a sanction against San Diego for committing securities fraud by failing to disclose to investors important information about its pension and retiree health care obligations in the sale of its municipal bonds in 2002 and 2003. To settle the action, the city agreed to cease and desist from future securities fraud and to retain an independent consultant for three years to foster compliance with its disclosure obligations under the federal securities laws.
In December 2007, the SEC and the outside auditors for the city and its pension system, Thomas J. Saiz and Calderon, Jaham & Osborn, settled charges against the firm. Without admitting or denying the allegations in the complaint, the audit firm consented to the entry of a final judgment permanently enjoining them from violating the antifraud provisions of federal securities laws. The firm, which acted as the auditor of the city and the benefits plan, also paid a civil penalty of $15,000.
SEC Charges Five Ex-Officials in San Diego Muni Fraud
Commission Chairman Christopher Cox has cited the city government's scandal as a reason to expand the SEC's regulatory powers over municipal bonds.
http://www.cfo.com/article.cfm/11002450/c_10999584?f=home_todayinfinance&x=1
Stephen Taub
CFO.com | US
April 8, 2008
The Securities and Exchange Commission has filed civil fraud charges against five former San Diego city officials—mostly finance professionals—for their roles in the city’s financial crisis in 2002 and 2003.
The SEC charged the individuals for failing to disclose to investors buying the city’s municipal bonds that there were funding problems with San Diego's pension and retiree health care obligations and those liabilities had put the city in financial peril.
advertisement The five named were former city manager Michael Uberuaga, former city treasurer Mary Vattimo, former auditor an comptroller Edward Ryan, former deputy city manager of finance Patricia Frazier, and former assistant auditor & comptroller Teresa Webster.
"The facts will clearly demonstrate that all city officials and staff members acted with good faith and honest intention with regard to the bond offerings by the city of San Diego," stated Webster's attorney, Frank Vecchione. "At no time did Terri Webster act inappropriately or with intent to deceive any potential investor. The time has come to put the misperceptions and misrepresentations regarding Ms. Webster and these bonds to rest. We intend to do so."
Frazier's attorney could not be reached at presstime. Lawyers for the remaining three former officials did not return phone calls from CFO.com.
In the fraud complaint filed by the SEC on Monday, the commission charges that the five former San Diego officials knew that the city had been intentionally underfunding its pension obligations so that it could increase pension benefits while deferring the costs. The officials were allegedly aware that the city would face severe difficulty funding its future pension and retiree health care obligations unless it raised new revenues or pension and health care benefits or city services were cut.
The SEC alleges the ex-officials knew that the city’s unfunded pension liability was projected to grow dramatically from $284 million at the beginning of fiscal year 2002 to an estimated $2 billion by 2009 and that the city’s liability for retiree health care was another estimated $1.1 billion. But the officials failed to disclose those and other material facts in bond-offering documents and continuing disclosures, it added.
In a speech, SEC Chairman Christopher Cox has cited securities fraud within San Diego's city government in those years as a rationale for extending the commission's regulatory powers over municipal bonds. "While the SEC has anti-fraud authority -- allowing us to come in and clean up messes like [San Diego] after the fact," he said in a July 2007 speech, neither the SEC nor any other federal regulator can compel the municipal bond market to make the same sorts of disclosures that the SEC requires in the corporate securities market. "It's a basic common-sense consumer protection that is way overdue," Cox said at the time, calling for legislation giving the SEC "limited powers" to assure transparency in muni offering.
In its current complaint, the SEC alleges that Uberuaga signed the closing letter for one of the bond offerings, falsely certifying that it was accurate and did not contain any misleading statements. Ryan signed letters falsely representing that the city’s audited financials included in the securities offerings were accurate, the regulator alleged.
The commission also charged that Frazier regularly reviewed and revised the false and misleading disclosure documents and signed the closing letter for two out of a total five bond offerings relevant to the case. She falsely certified the disclosures as accurate and did not contain any misleading statements reviewed and made presentations to the rating agencies, the SEC alleged.
Webster reviewed city financials that contained some of the false and misleading disclosures, the commission charged, alleging that Vattimo took part in drafting the city’s false and misleading disclosures. Vattimo and Webster both allegedly knew that in 2003, the rating agencies had concerns about the city’s growing pension burdens and that those obligations could hurt the city’s credit rating. "Nevertheless, they withheld material facts from the rating agencies," the SEC added.
The SEC previously issued a sanction against San Diego for committing securities fraud by failing to disclose to investors important information about its pension and retiree health care obligations in the sale of its municipal bonds in 2002 and 2003. To settle the action, the city agreed to cease and desist from future securities fraud and to retain an independent consultant for three years to foster compliance with its disclosure obligations under the federal securities laws.
In December 2007, the SEC and the outside auditors for the city and its pension system, Thomas J. Saiz and Calderon, Jaham & Osborn, settled charges against the firm. Without admitting or denying the allegations in the complaint, the audit firm consented to the entry of a final judgment permanently enjoining them from violating the antifraud provisions of federal securities laws. The firm, which acted as the auditor of the city and the benefits plan, also paid a civil penalty of $15,000.
Monday, March 31, 2008
SEC says mayor should not appoint his own auditor
I agree with the SEC and Frances O'Neill Zimmerman: San Diego mayor Jerry Sanders should not appoint his own auditor.
Zimmerman wrote the following in a letter to Voice of San Diego:
Auditing Mess
By Frances O'Neill Zimmerman, La Jolla
March 31, 2008
"...Voters need to realize that what the SEC calls for will be explicitly undone if voters fall for Proposition C that will appear on our June primary ballot with Mayor Sanders' stamp of approval. The SEC calls for "independent oversight" from an Audit Committee, "an independent and professional internal audit function" and "significant additional staff" to accomplish future on-time reporting to taxpayers and to credit-granting agencies...
"I'd say we can't afford not to have an independent Auditor and Audit Committee and more auditing staff. Nor can we can afford the fox-in-henhouse Proposition C."
Zimmerman wrote the following in a letter to Voice of San Diego:
Auditing Mess
By Frances O'Neill Zimmerman, La Jolla
March 31, 2008
"...Voters need to realize that what the SEC calls for will be explicitly undone if voters fall for Proposition C that will appear on our June primary ballot with Mayor Sanders' stamp of approval. The SEC calls for "independent oversight" from an Audit Committee, "an independent and professional internal audit function" and "significant additional staff" to accomplish future on-time reporting to taxpayers and to credit-granting agencies...
"I'd say we can't afford not to have an independent Auditor and Audit Committee and more auditing staff. Nor can we can afford the fox-in-henhouse Proposition C."
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