Corporate Governance 101

LETTERS

Corporate Governance 101

Posted  01-05-2010 | 10:00 AM

Laguna Woods Village, CA - Prevent, Detect and Deter Corporate Fraud

P. Loughrey

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RELATED VIDEO CLIPS 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

 

RELATED STORIES

 

   

To Recall or No Recall, & The HOA Hall of Shame

The Hen House Guarded by the Fox in Laguna Woods Village's Foster's Farm & the Hall of Shame  - News This Friday at 2:00 PM

Posted by CotoBlogzz  | 06/17/2009 04:00 PM

Laguna Woods Village, CA -Whether the United Board recall is absolutely necessary is debatable.  What is not debatable is the Golden Rain Foundations  board’s behavior during the June 2, 2009.  When all residents wanted was a little respect, board president Erwin Stuller resorted to unnecessary defamatory and personal attacks.  What is more appalling is that the rest of the board failed to step in and apply a modicum of decorum to the proceedings.  Such behavior is not only despicable but calls for an apology and stepping down.  The video clip capturing Mr. Stullers less than despicable behavior during  the proceedings are quickly becoming a rallying cry against abusive HOA directors.

Hoist By Their Own Petard - Fuses get shorter in Laguna Woods Village
Posted by CotoBlogzz | 06/03/2009 05:00 PMLaguna Woods Village, CA -So, exactly what happened during yesterday?s Golden Rain Foundation (GRF) board of directors meeting in Laguna Woods

United Recall Petition Signed Sealed and Delivered - Finance Committee Meeting
Laguna Woods Village, CA - As promised, earlier today United Mutual director Michael Curtis during the Finance Committee Meeting, delivered a petition to recall certain United board boards, with close to 100 verified signatures over an above the required...

United Board Recall In Final Stretch ? 4th of July in June!
Laguna Woods Village, CA - Change is in the air. So is anticipation, excitement, thrill and for some, fear. Fear that their telephones are bugged. Fear of retribution. Fear of the unknown.

Prosecuting Mr. Curtis - or is it Persecuting?
Posted by CotoBlogzz | 05/26/2009 8:30 PMPCM General Manager Milt Johns, taking exception to the coverage by Orange County Register of the recent exile of United Mutual Director Michael Curtis from his own community, documents his displeasure at the..

Laguna Woods Village - United Board on Official Notice
TO: United Board:About a month ago, the official "United Membership List" was provided to me by Bill Hart. I believe it is dated April 29th. This is being used to verify all signatures on the Removal (or recall) Petition, so that the official...

The $5 Million Landscape Budget and Recall Petition
Laguna Woods Village, CA - We have been to Laguna Woods Village. We have seen Laguna Woods Village. The place is nicely kept, but how many gardeners does it take to justify a $5 million/year budget?That is the question residents are asking, as the...

 

How to recognize a cheater
The traditional cheater is, for example, the crude sneak thief. He is also the small-time bureaucrat or politician on the take. He needs little skill and much gall to extract his living. But he lives in constant danger of being caught in the act and...

 

Laguna Third Mutual's President Queries Answered
Which wolf will you feed today? Posted by CotoBlogzz | 05/06/2009 9:00 AM | Have you heard the story about an old man who keeps struggling with two constantly fighting wolves? The first wolf represents truth, the second represents evil. When he...

 

 

Laguna Woods Village Budget
I keep hearing at all the committee meetings, the capital expenses being approved come out of reserves and will not add anything to our monthly assessments.I beg to differ.

 

Law?  What Law?  WE are the Law!  Recent find of Original Documents were mailed to each President (GRF, Third Laguna Hills Mutual and United Laguna  Hills Mutual), together with information sheets from OriginalTrust and amendment to the Trust dated Jan. 9, 1969. These documents stated how and why Ross Cortese, the developer of Leisure World Laguna Hills, changed the concept of Leisure World Laguna Hills from a Senior Citizen non-profit Co- operative to a Senior Citizen non-profit Condominium Complex.

 

New Golden Rain Foundation Rules of Engagement
On the heels of the Golden Rain Foundation?s (of Seal Beach) decision to appeal the recent Court of Appeals decision, on a financial transparency lawsuit, to the state Supreme Court, the embattled GRF HOA board of directors recently decided to enact...

    

Cynthia Conners Being Asked to Resign Posted by CotoBlogzz | 2/10/2009 5:40 PM The Laguna Woods Village Shareholders Committee is asking Third Board director Cynthia Conners to resign her positions on the board for a number of alleged ethical violations.

New Third Laguna Hills Mutual of Laguna Woods Village Board Seated  The Third Laguna Hills Mutual of Laguna Woods Village seated the new board for that housing mutual today. Officers include Carol Moore, President; Stan Feldstein, 1st Vice President; Don Lippert, 2nd Vice President; Kathryn Freshley, Secretary. The voting was done by secret ballot and the anticipation of the members present was that business would proceed without the roadblocks of the past year.

The Devil Made me Do It - Blame it on the Loopholes
During Thursday?s CZ Master Association?s Candidate?s Night designed for Coto de Caza residents to meet the candidates running for two seats on the CZ Master board, the first question mischaracterized our position, asking an either or question: ?Buzz...

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...

$2 million Verdict Returned Against Homeowners Association
Conduct constituted malice, oppression, or fraud and committed by one or more officers, directors or managing agents of the HOA - Presiding Juror Earlier this week a jury in a case filed in Superior Court of California Riverside, a jury ruled in favor...

 

GRF 2009 Budget Review, Be There or Be Out of Luck!
Letter from LWV resident M. Curtis inviting concerned residents: Tomorrow (Tuesday, July 22) at 9AM, in the Community Center Board Room, GRF will have a Special Corporate (all boards) meeting to review next year's budget. See the...

 

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...

 

HOMEOWNER ASSOCIATION TITLEHOLDERS ARE "HUMAN CAPITAL"
by D. Vanitzian(c) 2007 Donie VanitzianWhen criminal liability is not charged against the "criminals" in an association, then the titleholders become the Human Capital used to fund the criminal activities and wrongdoing.

 

HOMEOWNER ASSOCIATIONS: A CLUB YOU DON'T WANT TO BELONG TO
This ain't no party! This ain't no disco! This ain't no community!

 

Dare's role in Pastures cost association $100,000
By BRENDAN J. LYONS, Senior writer First published: Sunday, Times Union August 12, 2007. Republished with permissionAugust 12, 2007 ALBANY -- An advocate for the Historic Pastures Homeowners Association, which lost more than $100,000 in...

 

HIRING AN ATTORNEY CAN BE HAZARDOUS TO YOUR HEALTH LEGAL
BLACKMAIL--TAKING CLIENTS HOSTAGE- Q: How can you tell when an attorney is lying? A. His lips are moving.August 10, 2007 If California can place caps on spending and caps on fees of various types of businesses -- then it needs to put caps...

 

BRING BACK GOVERNOR PETE WILSON
by Donie Vanitzian, JD(c) 2007 D. VanitzianYou can?t have a good old boys and girls club without a little help from friends in high places, of course, a little help from California?s State Bar wouldn?t hurt either. [FN1]Forget for a moment that the term...

 

Should I stay or should I go - in/from my HOA? X
First was the Delegate?s Corner blasting CZ Master Association board of director?s critics for speaking out against a corrupt delegate system and electoral process in favor of direct elections, consistent with current legislation, and consistent with the...

 

Casta Courier Coverage of Unhappy Campers at Leisure World
I'd like to comment on the following paragraph that was in your publication "The Casta Courier" on July 19, 2007. The second paragraph reads as follows:

SPENDING OTHER PEOPLE?S MONEY by Donie Vanitzian, JDX(c) 2007 Vanitzian
I mean really! How difficult is it to spend other people?s money? Cheech!! It?s a no brainer, especially with no statutory accountability. "Hey man, it ain't difficult" one board member tells me, he says "no one gives s**t." He proceeds to point to his...

Critics do not attend board meetings - GRF that is!
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The New Seven, err... Eight Wonders of the World
CZ's definition for leadership is that whenever questions are raised, the canned response is ?Remember the Reserves?! Now CZ Spin Machine has to be the Eight Wonder of the World!- August 6, 2007 The results of the NOWC?s New Seven Wonders of...

"TWIN RIVERS" = "TRIPLE PROBLEMS"
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Lawyer seeking condominiums' business goes over the line
Question: I manage a large condominium project in Los Angeles. Unsolicited, an attorney sent me an invitation to meet with him over lunch. He then phoned me several times, including the day before the lunch, explaining the purpose was to speak only with...

 

CONDOMINIUMS ARE A GREAT INVESTMENT- FOR LAWYERS
About every two months I get a call, or a client comes in to ask me about condominiums. It usually starts off with, ?I bought this adorable little condo? and then the upstairs neighbor had a flood?. And then the Homeowners Association refused??

Paraphrasing the LA Times on Defeat of SB670 & Wicked Twin Witches of the West - SB 127 & AB-980
Taking a page out of the OC Register?s ?paraphrased reporting?, an article written by LA Times staff writer Diane Weder titled ?Bill to limit transfer fee founders?, published appropriately on May 13, 2007, quotes the president of the statewide Realtors...

 

Private Transfer Tax - Good for the Common Interest Development (HOA/CID) Industry or Good for the Politicians?
When we received our copy of the report that the California Association of Realtors (CAR) used to Sponsor and help draft transfer fees, we were confused. Given that Vanitzian has become an icon in Sacrament (some say a thorn in the legislature's side),...

 

Management company's tape-recording tactic puts homeowners at risk
Question: Because our management company has been sued before, it has a policy of recording all incoming and outgoing phone calls. Before a management employee answers the phone, there is an automatic announcement warning callers they are being recorded....

 

Of Trial Lawyers, the AAJ and the Democratic Party
The National College of Advocacy and AAJ Education maintain two distinct programs that recognize AAJ lawyer member efforts in pursuit of advanced legal learning and professional development?the Achievement Recognition Program and Advanced Studies in Trial...

 

Laguna Woods Village CC&Rs, What CC&Rs? I Got Your CC&Rs Right Here!
Coto de Caza is not the only place where the board of directors consistently either disregard the civil code, governing documents (Covenants, Conditions and Restrictions - CC&Rs) or even the moral code.

 

What is better in HOA Management? Transparency and Accountability or Feel Good?May 22, 2007
Mostly as a result of the Enron and Worldcom scandals, the Sarbanes-Oxley Act of 2002 known as the Public Company Accounting Reform and Investor Protection Act of 2002 and commonly called SOX; was enacted to provide business executives with less wiggle...

 

HOW DO OWNERS SPELL L-A-W S-U-I-T? SENATE BILL NO. 127!X
This author asks WHERE ARE THE PENALTIES AGAINST MANAGEMENT COMPANIES AND BOARDS? WHAT?S THE PENALTY FOR BREAKING THE LAWS THAT THESE LEGISLATORS ARE PASSING?

 

Two of the Worst & Most Detrimental Laws to Hit California are Sponsored by None Other than: California Association of Realtors (R) The Gold is Gone --No more gold in the Golden State!
Dear Governor Arnold Schwarzenegger,
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THE LAW OF INTENDED CONSEQUENCES - WHAT A DIFFERENCE A "WORD" MAKES: NO! ON ASSEMBLY BILL NO. 563
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EMERGENCY! EMERGENCY! OOPS! WE JUST HAD THE MEETING! YOU MISSED IT!!
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CAN YOU OUTSWIM YOUR HOA SHARKS? or will you drown trying?
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HEY GRAY PANTHERS! YOU GOT IT WRONG!
(c) D. Vanitzian
May 16, 2007The Gray Panthers are on record as SUPPORTING A BAD BAD BAD BAD BILL: Senate Bill Number 948. SHAME ON YOU. Where the heck are you getting your information from?

 

The Law of Unintended Consequences: Legislation and HOA BOD Cause and Effect: Clueless in my CAR Coming off a most improbable but successful campaign to defeat SB 670 author and HOA advocate Vanitizian thanks supporters making a connection between the quality of legislation being passed in Sacramento, and the quality of life in most homeowners...

Butler gets 90 years for Ponzi Scheme Targeting Seniors

Posted By CotoBlogzz | 01-04-2009 6:30 PM

SANTA ANA, CA  - Jeffrey Gordon Butler was sentenced today to 90 years and eight months in state prison for stealing the life savings of over 125 unsuspecting elderly victims in a Ponzi scheme by fraudulently soliciting more than $11 million in investments through the illegal sale of unqualified promissory notes or stocks and filing false tax returns on his ill-gotten profits.

Butler, 51, San Juan Capistrano, was found guilty by a jury June 30, 2009, of 693 felony counts for making untrue statements of material fact in the offer and sale of securities, the offer and sale of unqualified securities, theft from elderly persons, using a scheme to defraud in the sale of a security, and filing false tax returns for years 2001 through 2004.  A restitution hearing has been scheduled for Jan. 29, 2010

The defendant's wife, Peggy Warmath Butler, 49, San Juan Capistrano, was also convicted June 30, 2009, of four felony counts of filing false tax returns and excessive taking sentencing enhancements. Peggy Butler was sentenced to one year in jail, seven years of formal probation, and will have to serve seven years in state prison if she violates her probation. The Orange County District Attorney's (OCDA) office objected to the sentence, advocating for a minimum sentence of three years and four months.

"Many of Jeffrey Butler's victims had trouble believing that he was capable of stealing their life's savings. He stole more than money from the people who trusted him. Jeffrey Butler also stole his victims' dignity, independence, and dreams," stated Orange County District Attorney Tony Rackauckas. "By sentencing him to 90 years in prison it means that Jeffrey Butler will spend the rest of his life in prison unable to victimize another person."

A Ponzi scheme is when investors are offered high, short-term returns on investments, but instead of the investments generating actual income and legitimate profits, the money from the investors is kept for the benefit of the defendant or used to repay earlier investors. Jeffrey Butler sold more than 300 promissory notes or stocks without obtaining a license for the notes from the California Department of Corporations, as required by law.  The majority of the victims involved in this case were over 65 years old and unaware of the risks of their investments. Several of the victims lost their life savings and many died awaiting the jury trial.

Jeffrey Butler first met many of his victims while operating a company called Senior Information Services, which offered to assist senior citizens in the creation of living wills, trusts and other estate planning structures for a fee.  Through this business, the defendant gained the trust of many of his clients, whom he later victimized.  Between 1995 and 2004, in a series of businesses that changed forms and names, Jeffrey Butler failed to provide his investors with any documents or other information about his companies, how the companies made money, or any of the risks of investing in the companies as required by law to protect consumers and investors.   The defendant transferred investments between companies on several occasions without informing or providing only limited information to his elderly investors. The defendant immediately took 10 percent of the investors' money for himself without their knowledge or consent. 

In 2000, Jeffrey Butler moved his clients' funds to his newest venture, Global Network Providers (Grenada), Inc. (GNPG), without the knowledge of the investors.  The clients' money went to the development of a "telecommunications" company supposedly located on the eastern Caribbean island of Grenada. The company had very few assets and no income.

Jeffrey Butler convinced investors that GNPG paid 12 percent interest per year on promissory notes, when in fact the notes did not require payment for up to three years, and did not specify a time or method of payment. Investors were not made aware that these investments were not authorized to be sold in California. Some of the victims agreed to invest after being misled into believing that GNPG was an Individual Retirement Account (IRA) qualified investment, when in reality the investments were not IRA qualified. In an effort to fool his investors, Jeffrey Butler simply had "IRA" typed at the top of the promissory notes. He failed to inform many of the investors that the "telecommunications" company was based in Grenada. Being that GNPG was on the island of Grenada in the Caribbean, the company was not subject to U.S. laws. Butler eventually ran out of funds to maintain his scheme and sent his victims a letter in which he continued to lie to investors, claiming that Hurricane Ivan had caused a delay in payments.

Peggy Butler worked with her husband, Jeffrey Butler, by maintaining the financial records for each of the Butlers' companies and accounting for the deposits and expenditures of investor funds. Between 2001 and 2004, the Butlers filed false tax returns and failed to report income of more than $5.5 million, resulting in an unpaid tax liability of more than $530,000.

For the trial against the Butlers, a jury of 12 people and eight alternates was selected from a pool of 2,200 prospective jurors. The jury trial began Nov. 7, 2008 and lasted almost eight months. It included testimony from 92 victims, including 82 elderly victims, and video testimony from 49 victims, which was recorded prior to trial to ensure that the victim's testimony was preserved in the event that they were unavailable to testify at trial due to death or illness. At least six victims died during the course of the trial and 52 victims died prior to the case being brought before the jury. Due to the large number of criminal charges, it took two days for the verdict to be read against the two defendants.

Senior Deputy District Attorney William Overtoom of the Major Fraud Unit prosecuted this case.

OCDA's  Tips on How to Avoid Becoming an Investment Fraud Victim:  If it sounds too good to be true, it is not!  For instance, when listening to someone about a great investment opportunity, ask yourself:   
1.    Why are they offering this to me?  Why can't they get money from the bank?
2.    Why are they offering me such a great deal when they can get my money cheaper in other ways?
3.    Can I afford the higher risk for the promise of a higher return?
4.    Why have other brokers/investors/businesses passed on this deal?
5.    Has the promoter provided professional references, not including other investors with a vested interest, for the promoter and his investment?

Before investing, always check with the Department of Corporations (www.corp.ca.gov) to find out if the promoter and the investment have been qualified.  Never turn over your life's savings without first discussing it with a qualified, independent professional.

Two Man Sentenced For Breaking into Home of FBI Agent

 Posted by CotoBlogzz  | 01-04-2010 04:00PM

FULLERTON, CA - . Jeffrey Michael Drach and Justin Wesley Case were convicted today of breaking into the home of an off-duty Federal Bureau of Investigation (FBI) agent through a partially-open garage door. Drach, 20, Yorba Linda, and  Case, 21, Placentia, pleaded guilty to one felony count each of first degree residential burglary with a sentencing enhancement for a non-accomplice present during a residential burglary. Drach and Case were each sentenced to two years in state prison.

At approximately 2:00 a.m. on Nov. 18, 2009, Drach and Case entered the residence of the FBI agent. through a partially-open garage door. The victim, was awake and had temporarily exited his home through the garage door to get his canine from the back yard prior to an early morning briefing.

When the agent returned to his garage, Drach and Case were standing inside. The victim identified himself as a law enforcement officer and ordered the defendants to stop. One of the defendants physically struggled with James M. before both Drach and Case fled the scene in a nearby car. The victim approached the car and attempted to stop the defendants, firing at the vehicle as they fled the scene. Drach and Case were not injured.

The victim immediately called 9-1-1 and the Brea Police Department and FBI responded to the scene. Later that morning, a citizen called 9-1-1 to report a suspicious car parked outside of their home, which was approximately two miles from James M.'s home. The car was identified as the vehicle used during the burglary of James M.'s home and Drach and Case and arrested that morning. 

Deputy District Attorney Keith Bogardus of the Special Prosecutions Unit prosecuted this case.

Laguna Woods Village & OC Register: a Sweetheart Deal?

LETTERS

Laguna Woods Village & OC Register: a Sweetheart Deal?

Laguna Woods Village, CA 

Hope that the Register's rental/lease contract with Laguna Woods Village was at fair market value under IRS Code 4958 501 (C)  4 Corporations and State of California Section 214.   CHAPTER 2: SPECIFIC REQUIREMENTS OF OWNER AND OPERATOR Section 214 requires that, to be eligible for the welfare exemption, both the owner and the user of a property must meet specific requirements. The first step in determining welfare exemption eligibility is to determine if the organization itself qualifies. In brief, an organization must meet the following requirements: · It must be organized and operated for exempt purposes; · It must not be organized or operated for profit; · The owner organization must have an IRC §501(c)(3) or Revenue and Taxation Code §23701d letter of exemption; · The user organization may also qualify with an IRC §501(c)(4) or Revenue and Taxation Code §23701f or §23701w letter; · Organization's earnings must not benefit any private shareholder or individual; · Articles of Incorporation must contain an acceptable statement of irrevocable dedication of the property to exempt purposes; · Articles must contain an acceptable Dissolution Clause; and · The property owner must be the owner of record on the lien date. If the organization owning and operating the property does not qualify for exemption, its property does not qualify, even if it is used for exempt purposes. OWNED AND OPERATED REQUIREMENT A nonprofit organization claiming the welfare exemption for its property may be a community chest, fund, foundation, or corporation.47 In addition, it must be organized and operated for religious, hospital, charitable, or scientific purposes.48 Property owned by an organization may be eligible for the welfare exemption only if the nonprofit organization is organized and operated for these specific purposes. While it is not necessary that the organization be organized wholly for these exempt purposes, the primary purpose of the organization must be religious, hospital, scientific, or charitable. The operation of the organization for exempt purposes will be determined by its activities and use of the property   Revocation of Exemption Substantive Requirements for Exemption Still Apply IRC 4958 does not affect the substantive standards for tax exemption of an applicable tax-exempt organization under IRC 501(c)(3) or IRC 501(c)(4). This includes the requirements that the organization be organized and operated exclusively for exempt purposes, and that no part of its net earnings inure to the benefit of any private shareholder or individual. Thus, regardless of whether a particular transaction is subject to excise taxes under IRC 4958, existing principles and rules continue to apply, such as the limitation on private benefit. Reg. 53.4958-8(a). If an agent who is conducting an examination of an organization that is tax-exempt under IRC 501(c)(3) or IRC 501(c)(4) identifies issues involving potential private benefit or inurement, the agent should consider opening an IRC 4958 examination of the persons or persons involved in the potential private benefit or inurement transactions. Paul Loughrey Editor's Note:  The above is a culmination of Mr. Lougherty's effort to get information on the office lease by the Orange County Register from the the Laguna Woods Village Homeowners' Association as evidenced by the following email transcript. From: Paul Loughrey Sent: Monday, December 21, 2009 3:44 PM To: Ron Gonzales, OC Register Subject: Rental Space in LWV Good Morning Ron: A few months back we had a meeting with your staff and you said,"I will get you the cost and square feet of your office renting space in LWV" We are acquiring information about the fair market value of the various venders who are renting from us. Would you please give me documented accounting (years 2002-2009) of your payments for our 501 (C) 4 exempt space in LWV. Thank you for everything you have done for the shareholders in LWV. Paul Loughrey From: Ron Gonzales To: Paul Loughrey Sent: Monday, December 21, 2009 4:41 PM Subject: RE: Rental Space in LWV Paul: Help me. What’s this about? – Ron Gonzales From: Paul Loughrey Sent: Tuesday, December 29, 2009 9:13 AM To: Ron Gonzales Subject: Fw: Rental Space in LWV Any information! From: Ron Gonzales To: Paul Loughrey Sent: Wednesday, December 30, 2009 10:31 AM Subject: RE: Rental Space in LWV Paul: I’m not sure who told you we’d get you the amount we pay for rent, but it wasn’t me or Peggy Blizzard. What other avenues have you pursued to get the information? – Ron Gonzales From: Paul Loughrey Sent: Wednesday, December 30, 2009 12:36 PM To: Ron Gonzales Cc: Justin Wiggins Subject: Re: Rental Space in LWV Cheryl and I also asked you in our meeting with your staff. I have 10 witness that heard you say that you would get that information. As shareholders we are entitled to that information. We are not out to get you but want full disclosure. This is not the time to stonewall!RS 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, Photo or Video Clip  to the Editor, please send it to buzz@cotobuzz.com --- 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. All material 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).

New Year Free Concerts at Saddleback College

Mission Viejo , CA .   The Music Department at Saddleback College has unveiled its Free Concert Series for 2010, Concert Hour, a variety of individual and ensemble performances on Thursdays from Noon to 1 p.m. in Fine Arts Room 101 as follows:

January 21, 2010  Chamber Music Recital. Saddleback music faculty and flutist Cindy Ellis performs, with her Cal State Fullerton colleagues Rob Watson on piano and Bongshin Ko on cello, Sonate en Concert for flute, piano and cello by Jean-Michel along with other works.

February 18, 2010.  Option 3 Organ Trio.  Option 3 breathes new life into the familiar setting of the traditional jazz organ trio with Los Angeles organist Joe Bagg, guitarist Jamie Rosenn and Brooklyn drummer Mark Ferber.

April 1, 2010.  Suor Angelica by Giacomo Puccini.  Under the direction of Dr. Scott Farthing , members of Saddleback College ’s Vocal Department will perform a concert version of Puccini’s opera Suor Angelica.  From his trio of one act operas II Trittico, Suor Angelica tells the story of Sister Angelica and the nuns of a convent near Siena .

May 6, 2010.  Saddleback Music Students in Recital.  

Voice, instrumental, piano and jazz students perform in recital. 

Saddleback College is located at 28000 Marguerite Pkwy in Mission Viejo , just east of Interstate 5 at the Avery Parkway exit.  Parking is available in Lot 12.  Take Avery Parkway to Marguerite Parkway turn left to the second traffic light, which is Saddleback’s Marguerite entrance. Turn right into the campus and take the second left to “ Theatre Circle ,” turning right into Lot 12.

The Music Department has established a comprehensive program which is considered to be one of the finest in California :  a complete lower-division curriculum for transferring music majors, numerous performance groups, private and group lessons, a full concert series with faculty and guest artists, and general music courses.  The nationally recognized faculty is dedicated to performance and to teaching in all areas such as vocal, instrumental, jazz, guitar and piano.  Other music classes include harmony, musicianship, composition, history and appreciation of western art music, rock, jazz and world.

Located in Mission Viejo, Saddleback College provides quality higher education and training to the greater south Orange County community.  Having served more than 500,000 students since 1968, Saddleback College offers over 300 degree and certificate programs to help students reach their personal, career, and educational goals.  For more information, please visit www.saddleback.edu and for Fine Arts information, please visit www.saddleback.edu/arts. 

Beatlemania in the age of Social Media at Saddleback

Mission Viejo, CA – Performing Arts at Saddleback College is scheduled to present Yesterday & Today, a unique interactive Beatles experience where the audience creates the playlist for the night.   Starring Billy McGuigan, this celebration of Beatles music, hits the McKinney Theatre stage on Saturday, January 23rd at 8 p.m. There’s no denying that everyone has a Beatles song attached to at least one event in their life.  Through laughter, tears, and personal stories, Yesterday & Today will connect the audience and performers in a way no other show can.  Audiences will be able to rekindle the spirit of yesterday through the music of the world’s most popular band.  Don’t miss the chance to twist and shout in the aisles while signing every word to the songs that made history in the ‘60s.  Performers include Rick Avard, Jay Hanson, Billy McGuigan, Matthew McGuigan, Ryan McGuigan, Darren Pettit and Tomm Roland.

YAT, Photo Courtesy Saddleback College

 Tickets can be purchased by calling (949) 582-4656 (noon-4 Tues.-Fri.) or online at www.saddleback.edu/arts. Ticket prices are $32 general; $30 students/seniors/Angels; $25 children 12 and under.   Saddleback College is located at 28000 Marguerite Pkwy in Mission Viejo , just east of Interstate 5 at the Avery Parkway exit.  Parking is available in Lot 12.  Take Avery Parkway to Marguerite Parkway turn left to the third traffic light, which is Saddleback’s Marguerite entrance. Turn right into the campus and take the third left to “ Theatre Circle ,” turning right into Lot 12.

Located in Mission Viejo, Saddleback College provides quality higher education and training to the greater south Orange County community.  Having served more than 500,000 students since 1968, Saddleback College offers over 300 degree and certificate programs to help students reach their personal, career, and educational goals.  For more information, please visit www.saddleback.edu and for Fine Arts information, please visit www.saddleback.edu/arts.  

The HOA/CID Volunteer Fallacy

George K. Staropoli Author of Establishing the New HOA-land America - http://starman. com/starpub HOAGOV videos: http://youtube. com/hoagov Responds to the Berlind | Weil post titled “Why Won’t They Serve? Homeowners won’t volunteer for boards of directors of community associations another nail in the coffin? (http://www.berding-weil.net/articles/why-wont-they-serve.php)

Berlind | Weil apologizing for the failures of the HOA legal scheme — as I read this article. There does appear to be some descent from the lofty ivory towers where the “philosopher kings” wear rose colored glasses. More and more of these legal-academic aristocrats are forced to admit to the reality before them.

Let me reply to a few of his 5 reasons:

Reason 1. Lack of awareness. “Many owners of property in common interest developments have little knowledge of the operation of the homeowners’ association. ” And why is that? Could it be the unclean hands of misrepresentation? The cooperation of state governments not to warn consumers of the dangers of HOA governance?

“They simply do not connect the operation of the association with anything in which they have a personal interest.” Perhaps because they were led to believe that they were just buying a home, not a stake in a corporation, as is now the trend in describing HOAs by their supporters, no more “care-free living” in a healthy and harmonious community”.

Reason 4. “Us vs. them.” Now, where did I hear that before? “They do not see a board member as simply a fellow owner volunteering his or her time, but rather an incompetent bureaucrat.” First, is “volunteers” a valid excuse for incompetence, or is it a defect in the legal scheme? Second, their incompetence speaks for itself. The Berlind answer: “But this should open the door to challenging an existing board member at the next election–not to providing more reasons for no one to run.” Oh, somewhere a competent persons will surface to make the HOA function as intended? And what about the adhesion contract covenants that do not make the HOA a true democracy, but a pretend democracy? When has a corporate form of governance, as admitted by the author, ever been described as democratic?

Then, the scare tactics follow in his discussion. “If the corporation cannot function because it has no members willing to be directors, the alternative is to seek assistance from the courts, often by petitioning the court for the appointment of a receiver, a very expensive proposition. . . . There is also an argument that the entire scheme of association operation and management—by volunteer owners—is essentially flawed . . . .”

And here comes a far-out rationalization in order to convince oneself that HOAs are democratic. Democracy needs volunteers! Say what? “I call these, and similar ideas the ‘de-democratization ‘ of community associations. That sounds bad, but what good is representative democracy if there is no representative? For the democratic volunteer management system to work, there have to be volunteers.”

Well, you need to descent further out of the ivory tower and face the world as it is, and then maybe you can supply workable solutions to solve the problems with HOAs over the past 45 years (since the publication of the HOA “bible, the Homes Association Handbook).

The Free Speech Argument in HOA/CID Environment

Rancho Santa Margarita, CA - Often, resident complaints in a common interest development (CID) community are dismissed as coming from “disgruntled residents.” Other times, the local governing body threatens litigation using the “defamation argument” meant to stifle free speech, while atg the same time arguing that in a CID environment, there is no such thing as free speech.

In the case of Jeffrey M Turner VS. Vista Pointe Ridge Homeowners Association filed 12- 22-2009, the Fourth California Appellate District takes up the issue:

The Aliso Viejo’s Vista Pointe Ridge Homeowners Association brought a successful Code of Civil Procedure section 425.16 motion to strike a complaint by Jeffrey M. Turner and Nanette K. Turner. The Turners appeal. They contend the trial court erred in construing all matters in connection with a homeowners association’ s application of architectural guidelines as matters to which section 425.16 applies. The Court agreed.

The Association argued that section 425.16, subdivision (e)(4) applies whenever the issue concerns the conduct of a homeowners association in discharging its architectural review obligations. The Association cites Damon, supra, 85 Cal.App.4th 468 and Ruiz, supra, 134 Cal.App.4th 1456 for that proposition. The Court found that the Association “..reads those two opinions too broadly..” and the Court goes on to explain:



Damon, supra, 85 Cal.App.4th 468 involved a defamation action brought by a former manager of a homeowners association. (Id. at p. 471.) In that case, a number of homeowners had been unhappy with the plaintiff’s management style and had wanted a different manager for their homeowners association. To express their views and garner support for their positions, they prepared editorials, articles and letters to the editor that 7 were published in a newsletter circulated to homeowners association members and others. Certain members of the homeowners association board of directors spoke critically of the plaintiff at board meetings and one of them wrote memoranda criticizing the plaintiff‟s performance. (Id. at p. 472.) Ultimately, the plaintiff’s contract term ended and he was replaced. The plaintiff filed suit against two board members who had been critical of him, certain homeowners association members whose articles or letters had been published in the newsletter, and the publisher of the newsletter. (Id. at p. 473.) The trial court granted the defendants‟ section 425.16 motion to strike the plaintiff’s complaint, finding that the complaint arose out of the defendants’ exercise of their free speech rights with respect to a public issue. (Ibid.)

The Damon court observed that the allegedly defamatory statements had to do with whether the homeowners should engage in self-government or should utilize a professional management company, and whether the plaintiff was competent to manage the homeowners association. The statements concerned issues of public interest because “they concerned the very manner in which [a] group of more than 3,000 individuals would be governed—an inherently political question of vital importance to each individual and to the community as a whole. ” (Damon, supra, 85 Cal.App.4th at p. 479.) Furthermore, the statements pertained to political matters, inasmuch as they were made in the context of homeowners association board elections and recall campaigns. The court observed that “„[the right to speak on political matters is the quintessential subject of our constitutional protections of the right of free speech.”

As the Damon court explained: “In 1992, the Legislature enacted section 425.16 to provide a procedure for a court „to dismiss at an early stage nonmeritorious litigation meant to chill the valid exercise of the constitutional rights of freedom of speech and petition in connection with a public issue. This type of nonmeritorious litigation is referred to under the acronym SLAPP, or strategic lawsuit against public participation. In 1997, the Legislature added a provision to section 425.16 mandating that courts „broadly‟ construe the anti-SLAPP statute to further the legislative goals of encouraging participation in matters of public significance and discouraging abuse of the judicial process. (§ 425.16, subd. (a).)” (Damon, supra, 85 Cal.App.4th at p. 473.)



The Court concludes that "More significantly, Damon, supra, 85 Cal.App.4th 468 is distinguishable because it clearly centered upon the right of free speech."

Swine Flu Pandemic - an excuse for martial law?

The Swine Flu Scare, a teachable moment and a peek into scare tactics and manipulation behind the push for vaccines by the government and drug companies so that the population will be more wary of any future “mandated” policies.
For instance, anyone living in Massachusetts, should be voting out the lawmakers who voted YES on the mandatory vaccine bill. (S2028 Senate version subsequently titled H4271 House version)

Ron Paul warned the country about the “hysteria” back in April.

Dr. Mercola and others also warned the public.YouTube (http://www.youtube.com/watch?v=RXSB2oca7f8)- 9/22/09 Judge Napolitano on Forced Vaccinations in … will a pandemic lead to Martial Law? A DOWNRIGHT SCARY PORTENT OF WHAT COULD HAPPEN IN THE US SOME DAY

Senate bill 2028 known as the “Pandemic Response Bill” (http://www.naturalnews.com/026934_health_public_health_quarantine.html) would impose fines of up to $1000 a day and up to thirty days in jail for refusing to submit to health authorities during a public health emergency.

Pandemic Bill Passes House - Not over yet !!! | MassLPA(http://www.masslpa.org/content/pandemic-bill-passes-house-not-over-yet)

YouTube - 4/30/09 Swine Flu Skeptic Ron Paul on ABC: The Sky …http://www.youtube.com/watch?v=4Ty73YK8e0U

Dr. Paul was a freshman Congressman in 1976, during the last swine flu panic. (http://blogs.abcnews.com/thenote/2009/04/not-everyone-pa.html) He says he was one of just two members of the House who voted against the emergency swine flu vaccination program ordered by President Ford. An extreme position? Not really. Only one person died from the swine flu then, but at least 25 people died because of the vaccine.

Harvard Takes it Back and Says Swine Flu was Oversold (http://rda.mercola.com/redirect/view.aspx?Email=irenegdnight@earthlink.net&Retur)
Was the swine flu pandemic ever a threat? New research reveals the massive deception and manipulation of the truth. Dr. Russell Blaylock recently shared some information that shows health officials knew very early on that H1N1 was probably not much more of a threat than the seasonal flu that surfaces every year. He says:

“Once the pandemic had been declared, virologists tested the potency of this virus using a conventional method, that is, infecting ferrets with the virus. What they found was that the H1N1 virus was no more pathogenic than the ordinary seasonal flu, even though it did penetrate slightly deeper into the lungs.
It in no way matched the pathogenecity of the 1917-1918 H1N1 virus. It also did not infect other tissues, and especially important, it did not infect the brain.
Next, they wanted to test the ability of the virus to spread among the population. The results of their tests were conflicting, but the best evidence indicated that the virus did not spread to others very well.
In fact, an unpublished study by the CDC found that when one member of a family contracted the H1N1 virus, other members of the family were infected only 10% of the time — a very low communicability.”
Of course, nothing sells vaccines like panic, so you likely did not hear about this in the media. That is, until now.
The CDC Was Way Off … Why are They Still Pushing the Vaccine?
The CDC previously estimated that the U.S. death toll from the swine flu would be around 90,000. Even using their own numbers — some 80 percent of which are in all likelihood unrelated to H1N1 — 9,820 people have actually died from H1N1 from April through November.
That would still, according to their own statistics stating that the flu kills 36,000 Americans a year, put us squarely in the middle of the mildest flu season in recent memory.

BRCI, Solution to CA Budget Deficit - Do not leave Sacramento Without it!

At a time when Orange County faces some $84 million short fall in the 2009 budget, state Assemblyman Jose Solorio (D-Santa Ana) wants a more "responsible budget" by increasing taxes..

Not to be outdone, the California Teacher's Association not only wants a more "responsible budget" by increasing taxes, but is working on an initiative to increase taxes.
Then there is assemblyperson Saldana's Assembly Bill 1921, currently handled by the wasteful and redundant department of redundancy, aka the California Law Revision Commission (CLRC) - the CLRC in essence is a government funded group of unregistered lobbyists doing the work the legislature should be doing.

The California Budget Deficit will not be effectively dealt with until a Bureaucracy Realignment and Closure Initiative (BRCI) is fully implemented to eliminate or significantly downsize wasteful bureaucracies and programs. Taxpayers deserve efficient government, and by helping to identify and eliminate unnecessary bureaucracies, such as the California Law Revision Commission (CLRC), the Community Association Institute (CAI), the California Real Estate Commission and others would make government more cost effective and responsive. If these bureaucracies were eliminated today, taxpayers would not miss a bit - but would certainly have an impact on the budget!

The BRCI is patterned after the Base Closure and Realignment Commission. The Base Closure and Realignment Commission (BRAC) recommended military bases for closure in 1988, 1991, 1993 and 1995.

Example of wasteful spending by the CLRC: Saldana's Assembly Bill 1921
There is

"nothing commendable about the countless "paid" hours expended by the California Law Revision Commission (CLRC) in bastardizing the Davis-Stirling Act" writes arbitrator and LA Times columnist D. Vanitizian, in an editorial piece dated March 28, 2008. "AB 1921 is the full employment act for special interest parasitic industries and California's legislators. It is shameful that the remaining few protections for the titleholder's vested property interests are dangerously diluted by the cumulative effect of this bad legislation," she adds.

Sources told us that Mr. Hebert, CLRC's executive director, had very much determined that ASB1921 would pass - it was a done deal, after all, this was one of Assemblywoman Saldana's baby, there was practically no homeowner opposition and the Community Association Institute was playing ball. On a piece dated June 24, 2008, I wrote:

"Ominously however, earlier this month, after we learned of a potential "Mutiny in the Bounty" - 17 Lawyers opposed to the CLRC .... we can glean from the 17 attorneys standing up to the CLRC and their behind the scenes industry supporters who use the CLRC as their personal un-registered lobbyists is that they are on the verge of self-destruction. Perhaps AB1921 is the triggering event?"


But like a bad dream, Mr. Hebert and the CLRC are baaaaack wasting taxpayer money trying to push AB1921 yey again! In addition to discounting criticism by advocates such as Vanitzian and George K. Staropoli, President of Citizens for Constitutional Local Government, Hebert writes in Memorandum 2009-12 dated January 30, 2009

"There is one new development on this issue that is worth mentioning. In 2008 the National Conference of Commissioners on Uniform State Laws (NCCUSL) approved a final draft of the Uniform Common Interest Owners Bill of Rights Act (UCIOBRA), as a companion to UCIOA. When the Commission begins a study of
a possible homeowner bill of rights, it should look to UCIOBRA as one source of ideas,"


- Using yet more bureacracies and wasting more taxpayer money to promote special interest groups.

Questionable US Troops' Interrogation Practices

Posted By CotoBlogzz 01-01-2010 | 04:00 PM

Rancho Santa Margarita, CA - Evidence has surfaced to support HS Secretary's assertion that US Veterans may be prone to extremism and deserves close monitoring. Take for instance these Questionable Interrogation Practices

Armed American Troops Force Iraqi Civilians to Seesaw Until They Talk

Right, US Troop Torturing Iraqi Children by depriving them of Oxygen
Above, Iraqi child pulls a Mike Tyson in retribution for torturous questioning by US Troop

Alleged case of cannibalism to intimidate civilians	Coupled with allegations of forced child labor.

Alleged oxygen torture forcing children to keep mouths open, nostrils closed.	Alleged case of Asphyxiation

Torture by Hanging

Failure to Connect the Dots

Failure to Connect the Dots

Posted By CotoBlogzz 01-04-2010 | 07:00 AM

Rancho Santa Margarita, CA - Soon after the Ft. Hood massacre, the President Warned the nation not to rush to conclusion anent Nidal MalikHasan. Then Secretary Napolitano following the Christmas Day incident stated that "the system worked", before it failed. Yesterday, senior Obama counter-terrorism official John Brennan, declared there was “no smoking gun”, it was merely a failure to connect-the-dots.



The dots have been connected before 9-11-2001. Is it no smoking gun, political correctness or simply a refusal to see what the dots are saying?