The CotoBuzz Journal : The Laguna Woods $96K Breach of Contract

LETTER

OVERVIEW OF THE EMPLOYEE APPRECIATION $96,000

BREACH OF CONTRACT

Listen to this GRF board meeting tape very closely. These two directors pretend to be loyal and trustworthy GRF trustees. A honorable trustee would be fighting for the shareholder to keep the 96 thousand but these directors (Murphy & Rosenhaft) use: Deception, beguilement, deceit, bluff, mystification, bad faith, and subterfuge are acts to propagate beliefs that are not true, or not the whole truth (as in half-truths or omission). Deception can involve dissimulation, propaganda, and sleight of hand. It can employ distraction, camouflage or concealment. There is also self-deception as in bad faith. It doesn’t take much research (IRS CODE 4958) to investigate the federal and state governing documents. The answers are in the rules, regulations published in this document. and on the internet. This GRF board has already lost its exempt status and are liable for millions in IRS fines and penalties .

Some directors in Laguna Woods Village act as agents of influence. This is an agent of some stature who uses his or her position to influence shareholders opinion or decision making to produce results beneficial to the managing agent. (smetimes called moles) Agents of influence (PCM PUPPETS) are often the most difficult agents to detect, as there is seldom material evidence that connects them with a greedy power but they can be among the most effective means of influencing residents opinion and actions as they hold considerable credibility among the residents. Most commonly they serve the interests of a managing agent or contractor in one of three ways: either as a controlled agent directly recruited and controlled by a contractors power; as a “trusted contact” that consciously collaborates to advance greedy interests but are indirectly recruited or controlled by a managing agent’s power; or as a “useful idiot” that is completely unaware of how their actions further the interests of a managing agent.

Introduction: Video of GRF Decision

Duration: 6 minutes

Content: $96,000 GRF/PCM Contract

Date of Contract: May 23, 2008

Breach of Contract: PCM/GRF

Violation: Governing Documents

Documents: IRS Intermediate Sanctions

IRS Code: 4958

Violation: Excessive Benefits $96,000

Penalty: Reimbruse amount pus 25%

GRF/PCM Contract: $96,000 Null & Void

Play: Click left side of the box - you need to download pdf file - click here to download

Directors: Murphy & Rosenhaft

BREACH OF CONTRACT

We the Shareholders have Reviewed the terms, conditions and the duration of the Professional

Community Management , Golden Rain Foundation contract with our IRS Laguna Woods Village nonprofit exempt corporation. We have discovered that GRF did not fulfill its obligations in reporting excessive benefits on the IRS 990 Form in May 2008 as required by the IRS. We considered this nondisclosure act as a breach of contract. Since the IRS duration date was January 2009 the 90 day duration notice period of the contract has expired, ( January 2009) This $96,000 dollar contract was breached by PCM/GRF and the $96,000 dollar annual contract is now considered expired/terminated. Contract is considered Invalid (PCM Contract and Management Agreement) Why?

· GRF is required by law to send A 30-day letter (2009) and notice of deficiency ($96,000)

relating to the liability for IRC 4958 excise taxes for a tax year should include:

· All excess benefit transactions occurring during the tax year (GRF has never reported a

excess benefit on it Form 990)

· IRS penalty can be both the 25% initial excise tax and 200% additional excise tax relating to

each excess benefit transaction occurring in the tax year.

· Failure to abide to the federal law (Code 4958) makes this contract transaction null and

void.

Section 4958

Penalties for Excess Benefit Transactions

Amount Excessive Benefit By GRF Not Filed With IRS: $96,000

Disqualified Person’s: GRF/PCM

Date Received the Excessive Benefit: May 2008

IRS 990 Form Excess Benefit Transaction: Due Jan 2009 (GRF did not file excess benefit) June 29th 2012 Comments by Third Mutual Director Straziuso: “Employee “appreciation” gifts and events are a normal budget line item and occurrence at almost all companies”

NOTE: Director Straziuso is under Election Campaign Donation Fraud investigation. He voted 100% on all issues that support the managing agent. See Board repay videos.

July 3rd 2012 Comments by Director Murphy “It’s a contract ($96,000) and we must

honor it. It would be overturned if we didn’t accept the contract” See video

NOTE: Directors forgot to explore the governing documents or he would not make such a statement

July 5th 2012 Editors Comments: It appears the property management has put so much on the exempt organization Directors that they appear to acting out of “Willful Neglect” The Shareholders are seeking any approach to preserving the soundness and integrity of the nonprofit community must strike a careful balance between the two essential forms of regulation—that is, between prudent legal mandates to ensure that organizations do not abuse the privilege of their exempt status, and, for all other aspects of sound operations, well informed self-governance and mutual awareness among nonprofit organizations. Such a balance is crucial for ensuring that structures of accountability and transparency are core strengths of our nonprofit community, affording our organization the support they need to pursue their various callings and the flexibility they need to adapt to the changing needs of their communities.

Invalid PCM Contract and Management Agreement: GRF is required by law to send A 30- day letter and notice of deficiency ($96,000) relating to the liability for IRC 4958 excise taxes for a tax year should include:

· all excess benefit transactions occurring during the tax year (GRF has never complied)

· Both the 25% initial excise tax and 200% additional excise tax relating to each excess

benefit transaction occurring in the tax year.

· Failure to abide to the federal law (Code 4958) makes the transaction null and void.

Joint and Several Liabilities for disqualified person(s) as well as directors: With

respect to any specific excess benefit transaction, if more than one person …

#######

If you would like to make a comment about a specific news article, editorial or commentary and have it considered for publication in the CotoBuzz Journal as a Letter to the Editor, please send it to buzz@cotobuzz.com --. Do not send attachments- or mail to Letters to the Editor, c/o CotoBuzz, P,O. Box 154, Trabuco Canyon, CA 92678
Letters should be brief, and may be edited for clarity and length.. They become the property of CotoBuzz Journal and may be republished in any format. Please include your full name, mailing address and daytime phone number (your number will not be published).

RELATED STORIES

Le Cirque Du Directors & Lawyers at Laguna Woods Village

This went to the Globe today June 21, 2012, to be published in the next issue. I doubt it will appear. If this single thing doesn’t upset you then you have either decided to join the ranks of those who just have so much money to live on for the rest of your lives that you just can’t spend it all or you have not been paying attention. This is just one single thing that has been a part of the overall and overwhelming abuse heaped upon us for all the years any of us has lived here. I apologize for the run on sentences. I am just very upset. We moved here before we were to retire so we could set down roots and live here for the rest of our lives. That isn’t going to happen.

An Incentive Plan ACORN Would be Proud Of

Wednesday, October 7th, 2009

Busy Busy and still covering up

Posted by Katie McDaniel 10-07-2009 2:30 PM

Laguna Woods Village, CA- Bob Hatch has decided along with the help of that Corporate Oracle, Kathryn Freshley, that a new incentive plan should be put in place for PCM. The fox is ripping apart the hen house. Even Linda Wilson of the United Board admitted the board members are hardly experts according to the newspaper report.

LETTERS

LWV Open Board Meetings Memo

We received a follow up letter, posted below, to a GRF resolution outlining rules of engagement for open board meetings (click here for copy) scheduled for approved today. We asked Ms. Donie Vantizian, co-author of the long-standing Los Angeles Times column "Associations" to comment on the merits of such letter, and have included her response under Comments below

GRF Rules of Engagement Good For Folsom? First, does this new "SHUT UP!" Rule (click here for copy of GRF resolution dealing with rules of engagement) ) apply only to the Folsom Prison inmates at Leisure World or does it apply also to the residents?

GRF Rules of Engagement Innovation, or Self-preservation?If you would pay attention ((click here for copy of GRF resolution dealing with rules of engagement) ) to what the residents are telling you, you wouldn't have to be so scared and try to impose illegal sanctions against the people who are paying the bills. The residents would not be angry.

GRF Rules of Engagement Restrict Resident Participation The GRF resolution (click here for copy) about to be finally approved at the next GRF Board meeting - Tuesday after next (August 5th), is an effort to greatly restrict resident participation in their meetings. Click here for additional information

Different Homeowners Association, Same Issues
I assume that you are a member of the Walnut Creek Leisure World Association, or is this another HOA in the area? We have had many comments of similar problems by HOA's who happen to run into our website and I'm glad that you contacted me.

The Right LWV Leadership for Such a Time as This?
Is this general manager (Milt Johns) over his head in his management skills? Can someone come out with only experience from the garden to manage a 90 million dollar business without a conflict of interest? When is the last time Mr. Johns lowered our costs...

Working to Serve, Or Serving To Work - Letter to OC Register Columnist
Another good column. I was wondering if there was ever any serious consideration to any non-union government employee for the position of publicly elected Sheriff by either the Register or Supervisors? That is all I see in your Top Five selection and...

To Destroy a Community, or to Destroy the Status Quo?XThat is the Question in this Letter to the Menifee SCCA Board of Directors
First of all I have no intentions or no desire to destroy "our community". However, I must ask you to please define what you think the community is, what it is you think I am threatening to destroy?Secondly, Sun City has been declared a "blighted...

The CotoBuzz Journal

Pages

Sunday, July 08, 2012

The Laguna Woods $96K Breach of Contract

Le Cirque Du Directors & Lawyers at Laguna Woods Village

An Incentive Plan ACORN Would be Proud Of

No comments:

Wikipedia

Reading List

	June 2, 2009 GRF Meeting - The Shut Up Rule in Effect All residents want form Mr. Stuller is a little R.E.S.P.E.C.T - Click here for the rest of the story
Desperate HOA Directors - Your Are Out of Order!

	June 2, 2009 Golden Rain Foundation annotated board Meeting - as Board President denigrates fellow director and cancer patient Michael Curtis, while defending property management company's actions Click here for the rest of the story..
Desperate Directors of Laguna Woods - The Facts Behind the Fiction Part Two - Click here for video

	If you thought farming subsidies were bad, you should see the Laguna Woods Village nursery subsidies! Click here for video clip
Keep out! - Nursery is a Dangerous Place...... for Inquiring Min

	What we do with your money is none of your business: Click here for video clip
Do not Ask, PCM Won't Tell: The LWV Accounting System - O