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.
Tuesday, July 29, 2008
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.
Subscribe to:
Posts (Atom)