Laguna Woods Village In Witness Protection – Changing Names to Protect the Guilty

LETTERS


To: GRF, United, Third & Fifty Directors, Leisure World Laguna Woods Homeowners

Re: TRANSFORMATION OF LEISURE WORLD TO LAGUNA WOODS VILLAGE A FICTITIOUS NAME.

The transformation of Leisure World Laguna Hills occurred when Golden Rain Foundation (GRF) changed the Home Owner Association (HOA) Tax Code 528 to the Social Welfare Tax Code 501 (c)(4).

The article written in the Laguna Woods Globe, Thursday April 5, 2012, was incorrect as to the year in which GRF's Tax Status was changed to 50l (c) (4) a Social Welfare Code. It was not 14 years ago as stated in the article; it was 10 years ago, namely in 2001.

Golden Rain Foundation Tax Status Pamphlet was presented October 3, 2000 to the homeowners in a Special all Boards open meeting by Janet Price, Finance & Administration Director, Gary King, Esq., Hart, King & Coldren and John Panetta, Tax Managing Director,
KPMG explaining the need for a tax code change by minimizing GRF's tax liability without affecting service levels.

The pamphlet listed two tax filing code methods available to Golden Rain Foundation (1) IRC Section 277 -Certain Membership Organizations and (2) IRC Section 528 - Homeowners' Associations (HOAs).

GRF had filed taxes under 528 HOA code since 1976. GRF made the decision to file under 501(c)(4) a Social Welfare Code after the presentation of the Tax Status Special Meeting.
The Tax Status Pamphlet presented October 3, 2000 stated the only viable means of removing enough non-qualifying expenditures from the tax books of the Golden Rain Foundation without affecting service was to move some of the non- qualifying expenditures to some other Entity -- existing or new.

This could be accomplished by,
1. Selling the Cable TV system to an outside party,
2. Transferring the Cable TV to the Mutual's or to the GRF Trust or
3. Transferring the Cable TV to a New Entity. GRF selected transferring the Cable TV to a New Entity (Leisure World Communications).

The Tax Status Pamphlet also listed the steps taken to establish a new entity. The new entity, Leisure World Communication was formed and the old shell game began in 2001.

The Cable TV assets and liabilities were moved into a new For Profit corporation LW Communications.
LW Communications was owned 100% by Golden Rain Foundation with Rossmoor Electric/TV Corporation as the Cable TV Manager for the new entity.

In 2002 after 35 years as the Cable TV Manager Rossmoor Electric/TV Corporation was replaced as the Manager of the Cable TV System by none other than GRF Broadband Services with PCM as the new Cable TV Managers of the new entity LW Communications.

In 2003/04 the LW Communications Corporation was dissolved and all the Assets and Liabilities of LW Communications were transferred back into Leisure World Laguna Hills GRF Broadband Services a non-profit corporation with PCM as the Manager of the Cable TV system.

The Cable TV assets were moved into GRF Broadband Services and not back into the GRF TRUST, WHY??

In 2003/04 Ms. Cortese requested a percentage of the revenue collected under the name of Leisure World by GRF Broadband Services and PCM a for profit corporation.

If Leisure World had remained a non-profit HOA and Rossmoor Cable TV as the Manager of the Cable TV, Ms. Cortese would not be entitled to a percentage of the revenue. When Ms. Cortese wanted a percentage of the Leisure World revenue Golden Rain Foundation (GRF) made the decision to change the name of Leisure World Laguna Hills rather than paying Ms. Cortese a percentage of the revenue owed to her.

In 2004 the transformation of Leisure World Laguna Hills occurred when the name was changed to Laguna Woods Village without the number of homeowners Votes needed to change the name as per Article XIV of the Covenants, Conditions and Restrictions (CC&Rs), the governing documents for Leisure World Laguna Hills.

To date none of the governing documents have been changed nor has the name of Laguna Woods Village been filed with the State of California.

This community has been operating under the fictitious name of Laguna Woods Village.

Operating under the fictitious name of LAGUNA WOODS VILLAGE would have been legal IF GRF and PCM would have filed a FICTITIOUS BUSINESS NAME STATEMENT with the Orange County Recorder.

GRF and PCM FAILED to file the FICTITIOUS BUSINESS NAME DOCUMENTS with the Orange County Recorder.

LAGUNA WOODS VILLAGE does not EXIST.

THERE HAS NOT BEEN A LAGUNA WOODS VILLAGE HOMEOWNERS ASSOCIATION RECORDED IN THE STATE OF CALIFORNIA. ALL REAL ESTATE TRANSACTIONS, CONTRACTS, PUBLICATION, SALES, DOCUMENTS AND ETC. FILED UNDER THE FICTITIOUS NAME OF LAGUNA WOOD VILLAGE is ILLEGAL.

THIS HOMEOWNERS ASSOCIATION IS AND ALWAYS HAS BEEN LEISURE WORLD LAGUNA WOOD.


Sincerely yours,
Noni and Corkey Eley

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