Thursday, February 25, 2010

Laguna Woods New GM: Ethical Issues


Click Here: Video Tape 5 minutes "Excessive Benefits"

Ethical Questions

So PCM's Disbro wants Jerry Storage to be our new General Manager. Why! When he violates the basic ethical rule of not using exempt property without paying for it. How can we trust someone who intimidates a 75 year old women who loves her job and needs the extra money. See the video

Wasn't jerry Storage one of the managers who abused the credit card and the one who had the most frequent uses? Did he pay the IRS on this added income on your 1040 form. If you didn't he will be fined by the IRS for triple the purchase amount plus interest.

As per the video this man is just like another Milt Johns and his management style looks to be corrupt.

Isn't Mr. Storage being sued by employees (Ray Maiorano) for wrongful termination?

How much fair market rent/lease is Jerry Storage paying for the use of non-profit PCM security facilities? I bet you anything he is violating Section 214 of the State Board of Equalization codes and subject to fines and penalties.

(be) Excess benefit defined.

An excess benefit is the amount by which the value of the economic benefit provided by an applicable tax-exempt organization directly or indirectly to or for the use of any disqualified person (PCM) exceeds the value of the consideration (including the performance of services) received for providing such benefit.

(4) Knowing – Board of Directors are held responsibility EX: Incentive Plan for PCMs excessive benefits payback and including fines. OUCH!

(ii) In general.

For purposes of section 4958(a)(2) and this paragraph (d), a manager participates in a transaction knowingly only if the person –

Has actual knowledge of sufficient facts so that, based solely upon those facts, such transaction would be an excess benefit transaction;

Is aware that such a transaction under these circumstances may violate the provisions of Federal tax law governing excess benefit transactions; and

Negligently fails to make reasonable attempts to ascertain whether the transaction is an excess benefit transaction, or the manager is in fact aware that it is such a transaction.

(ii) Amplification of general rule.

Knowing does not mean having reason to know. However, evidence tending to show that a manager has reason to know of a particular fact or particular rule is relevant in determining whether the manager had actual knowledge of such a fact or rule. Thus, for example, evidence tending to show that a manager has reason to know of sufficient facts so that, based solely upon such facts, a transaction would be an excess benefit transaction is relevant in determining whether the manager has actual knowledge of such facts.

Grace Foster has written document from Jerry Storage refusing to do anything about her unethical and dishonest compliant against PCM.

P. Loughrey


According to PCM, Mr Storage replaces Johns because he " “... is noted as one of the industry’s most respected experts and is fully equipped to uphold the PCM standard of excellence. In addition, Jerry’s diplomacy will assist our boards of directors to achieve the goals set out for their community.” For the record, we have not heard of Mr. Storage's substantive contributions to the industry, if any, over the last decade covering the industry. Further, Mr. Storage delivered the infamous ultimatum to the Laguna Woods Village local governance - not very diplomatic!

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