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Bustamante  Egan    BLM Building    Courthouse projects

 

    LASSEN COUNTY

PUBLIC IMPROVEMENT CORPORATION

collateral

LCPIC Slush Fund

Articles of Incorporation

Bylaws

NEWS UPDATE: 8/31/17

CERTIFICATE OF PARTICIPATION LOAN PAYMENT DUE:  EACH JUNE

LOAN PAYMENTS

 

 

 

 

As of 7/26/16, this public corporation has not held the required "annual" meeting

No approval, of expenses or funding the  LCPIC, has ever appeared on any Lassen County Board of Supervisors Agenda until May 26, 2015

KAN WE HELP WILL MONITOR EVERY PENNY OF THIS NEW LOAN

CAO Richard Egan just confirmed that the LCPIC has no records that the corporation registered with the IRS

The Auditor, County Clerk cannot produce any activity for this corporation in the last seven years

The Government Financial Strategies, Inc. stated today that the vetting of the status of LCPIC was done through the County's Bond Counsel, Meyers-Nave

NO RECORDS FROM 1989 TO 1992 OF THE ORIGINAL LOAN TO CONSTRUCT THE COUNTY JAIL

 

NOTE:  Larry Wosick's term was from 2010-2014. Richard Egan claims that the last meeting of this corporation was on June 26, 2008. Larry Wosick was placed on the Board of Directors of the LCPIC, as President,  by virtue of his position as Chairman of the Board of Supervisors. The LCPIC did not meet again until 2015. They are required to meet annually due to the outstanding balance owing on the Certificate of Participation issued in 1998 and was paid off in 2011.

???

The LCPIC assumed a $6,030,000 debt when it was formed in 1998 because the County paid only the "interest" on the 1989 COP. 

The County continued to operate, from 1992 to 1998, without the shell corporation Ameri-Cal Civic Improvement Corporation which was dissolved in 1992.

Coincidentally, no records exist from 1989 to 1992 of this Ameri-Cal Civic Improvement Corporation

 

The original COP in 1989 was $6,675,000. The County paid only $645,000 in 9 years.

HOW DID THE COUNTY PAY FOR THIS IF IT WAS NEVER PUT ON AN AGENDA

 

 

May 26, 2017

 

Kan We Help Reminds Bustamante

to

Schedule the LCPIC Annual meeting

[Bustamantes response: After the first Board of Supervisors meeting in July]

 

 

October 28, 2016

 

Kan We Help requested an accounting of the COP loan expenditures

and suddenly they remove an inappropriate expenditure for

Health and Social Services

....as we promised, we will watch every penny !

 

August 10, 2016

Lassen County

Public Improvement Corporation's Annual Meeting

L to R:  Treasurer Nancy Cardenas, Auditor Diana Wemple , Supervisor Chapman, Secretary Julie Bustamante, CAO Richard Egan, Tony Shaw

ABSENT: Assessor Dan Schlueter, Sheriff Dean Growdon

 

The meeting started late (11:03 AM) because Chapman was late again.

The meeting was adjourned at 11:13 AM

This is a public corporation that was created to fund ($4,080,000) a community pool and buy and restore an office building. 

Kan We Help Secretary Eileen Spencer, in Public Comment, asked where the money originated from to pay the $300,000 loan payment? Chapman said he was not going to answer that question, but CAO Richard Egan reminded Chapman that this was "PUBLIC COMMENT" and this was a legitimate question. Chapman took offense to this and said it was none of Spencer's business. Was Chapman's defensive position due to the fact that he did not know or he was hiding something?

Spencer pursued this question and finally the Auditor said the payment was made from three (3) accounts. One of these accounts was the General Fund.  KAN WE HELP WILL ACQUIRE AND REPORT THE AMOUNTS TRANSFERRED AND THEIR ORIGIN.

The County told the public there would be no problem re-paying this $4,080,000 loan because they would use the "Tobacco Settlement" Fund to make the annual payment. The problem the Supervisors ran into......they committed this money to many different projects and when it came time to make this loan payment, the Tobacco Fund had been depleted.

Also, this public  corporation must pay an $800 fee each year to the Secretary of State. Julie Bustamante is responsible for making this payment and has never made one payment on time for this loan or the 1989 loan.  Penalties then accrued. We can only assume they approved a $1,000 because she has to pay delinquent penalties again.

 

 

 

August 8, 2016

Bustamante Corrects LCPIC Agenda

 

August 5, 2015

 

As of 7/26/16, this public corporation has not held the required "annual" meeting

Kan We Help Reminded Bustamante over and over that the Lassen County Public Improvement Corporation has not held their mandatory "ANNUAL" meeting yet.  This corporation was formed to process a $4 million dollar loan to finance an office building and a community pool.

When she does schedule this meeting, she puts two (2) meeting times on the Agenda?

 

 

 

 

 

June 9, 2015

 

THE FIRST PAYMENT WAS JUST MADE ON THIS LOAN

This annual $300,000 loan payment

will take

all of the Tobacco Settlement Fund each year

or from

SOMEWHERE ELSE........

 

 

 

Where is the rest of the payment coming from?

 

The Supervisors put this payment into the 2015/2016 Budget

 

Please notice that Account 3004200 & 3004400 is for

 "OTHER" LONG TERM DEBT.

This is the secret debt still on the books for the first Loan

 

 

 

December 16, 2015

Lassen County Supervisors

Buying New Computers for the

Riverside Building

.......when they said the four Departments would be bringing their existing equipment and furniture with them

Three Departments will be getting new computers/monitors

District Attorney will get 7 new computers/monitors

Probation will get 13 new computers/monitors

Public Defender will get 6 new computers/monitors

CHILD PROTECTIVE SERVICES - ZERO

The Supervisors are paying for these computers from Fund 104, Budget 0322, Account_______________

 

December 3, 2015

The Lassen County Supervisors voted not to budget any funds for the Courthouse renovations from the LCPIC slush fund in the 2015/2016 Fiscal Year

When Chapman wanted his new Board Room in Judge Sokol's old Courtroom (The Courthouse Annex) "he" arbitrarily instructed NST to go ahead with the remodel plans. He had  no authority to order this work and now he has done the same thing with the Old Courthouse.

The Lassen County Board of Supervisors NEVER AUTHORIZED THIS RFP

 

 

November 20, 2015

Lassen County Auditor Watching LCPIC COP Funds

Richard Egan Attempts to Use

LCPIC dollars

to

Replace a Heater at 107 S. Roop Street

Auditor moved expense to correct account, Probation/Maintenance & Building Improvements

 

 

July 11, 2015

Lassen County Treasurer/CAO Richard Egan

Diverted $5,077,312.81

of the LCPIC dollars

to

"UNASSIGNED VENDOR"

from 2003 to 2011

*The 1989 $6,675,000 Certificate of Participation (COP) loan cost the taxpayers $11,121,884.41

[*Based on public records from 1993-2011].

Lassen County claims they have no records for this loan from 1989-1992

 

Lassen County claims they have no records for this loan from 1989-1992

{this was the period the County used the shell corporation Ameri-Cal Improvement Corporation. ACIP was dissolved in 1992}

 

 

 

July 10, 2015

Kan We Help Has Confirmed

that

Egan, Pyle and Chapman

 *lied

about the 1989 $6,675,000

the County paid only "interest" on this loan and refinanced the principal in 1998
 

 &

the 1998 $6,030,000

*the $6,030,00 loan was not paid off in 2007, 2008, 2009, 2010

Certificates of Participation loans

 

They should not be trusted with

the new $4 million loan

 

 

The  1989 COP [issued for the Lassen County Jail] was not paid off until 2011. Egan claimed that it was paid off in 2007

Video: May 26, 2015

 

Lassen County CAO intentionally lied about the "activity" of their shell corporations

Video: June 9, 2015

......full report coming

 

 

 

June 8, 2015

Former Lassen County District 5 Supervisor

Everd McCain

Speaks Against LCPIC Loan

at May 26, 2015 Board of Supervisors Meeting

 

 

Supervisor McCain was kept in the dark about this secret slush fund

Bob Pyle was President of this slush fund in 2001, 2006, 2010, 2015

Jim Chapman was President of this slush fund in 1999, 2003, 2011

Brian Dahle was President of this slush fund in 1998, 2007, 2012

 

 

 

June 7, 2015

Lassen County Supervisors Pyle and Chapman's

DECEPTION FIRST AND THEN MORE LIES

 

 

The Lassen County Public Improvement Corporation was created in 1998 because the County's previous "public benefit"  Ameri-Cal Civic Improvement Corporation was terminated (C1579332).

The newly formed LCPIC then used the States Superior Courthouse & Annex, Roosevelt property and the County Administration Building (Roop Street)

as collateral to refinance the County's $6,030,000 debt.

The constant with these Shell Corporations are

Richard Egan,

Bob Pyle and Jim Chapman

Public Records disclosed that the LCPIC was in "non-compliance" with the Lender from 2000-2005. The LCPIC failed to submit audited financial statements.

 

THE CLAIMS THAT LASSEN COUNTY

HAS BEEN

 "debt free"

has been a lie

 

 

SECRETS, SECRETS, SECRETS

August 7, 2001 LCPIC Minutes

Richard Egan:  "The corporation can also borrow funds without approval of the voters"[Richard Egan was the Lassen County Treasurer from 1999-2014]

 

According to the LCPIC Minutes, Assessor/ LCPIC Director Ken Bunch stated numerous times he was against the actions of this shell corporation

 

After Julie Bustamante was elected County Clerk the LCPIC didn't meet from 2009 to 2015. Annual Reports were not filed

 

On June 15, 2011, the Franchise Tax Board sent the LCPIC a "FINAL NOTICE BEFORE SUSPENSION

 

 

 

June 5, 2015

Lassen County Public Improvement Corporation

NOT A NON-PROFIT

as the Articles of Incorporation

and Bylaws state

......just a plain old ordinary shell corporation

 

Kan We Help requested the Agendas, Minutes and annual corporations reports filed with the Franchise Tax Board and/or the IRS.  On May 29, 2015, the County Clerk was advised by County Counsel not to let KWH inspect these documents. 

Bob Burns delay was intentional. They could not release these documents until after the $4 million was transferred. It was transferred on June 4, 2015 to an account that does not exist

The County Clerk claimed later, after Kan We Help threatened to file a Writ of Mandate, she had to find all of the documents requested.

 

Bustamante had the "green" binder at the May 26, 2015 LCPIC meeting and could have complied with Kan We Help's Public Records Request on May 29, 2015

Bustamante turned the "green" binder over for inspection today.

 

Bustamante also released the annual regular corporation "Franchise Tax Form 100's "  & copies of the letters from the State of California regarding late fees, penalties, etc.

All available on May 29, 2015

 

 

June 3, 2015

Julie Bustamante

Richard Egan

Bob Burns

Bob Pyle

 

WILL BE HELD ACCOUNTABLE

FOR THIS DECEPTION

 

They cannot produce any documentation  that LCPIC

 is

a valid non-profit corporation.

 

 

 

June 2, 2015

Lassen County Public Improvement Corporation

?BOGUS AND BUSTED?

A Ukiah resident, Tony Shaw, was hired to put this $4 million dollar loan together. The Board of Supervisors hired the Government Financial Strategies Inc. and GFS, Inc. based their vetting of the LCPIC to receive millions on Bond Counsel (Meyers-Nave). .....great checks and balances ?

Lassen County Counsel Bob Burns has blocked any disclosures on the LCPIC that was formed in 1998.  He advised the County Clerk not to release mandatory State annual reports, Agendas and Minutes. All are public documents. 

All corporations in California are required to comply with the changing corporate laws. LCPIC is no exception, even though the GFS, Inc. was told by Bond Counsel that the LCPIC does not have to comply.

BOTTOM LINE:

Is the LCPIC defunct and being resurrected?

Will most or all of the 4 million be used on the DA's new building?

Will Chapman's new board room continue to be paid from unfunded budget accounts?

Will the HLVRA go out-of-business because the County spent the promised million dollars?

Will the Supervisors continue

to

coerce and intimidate staff to hide the truth?

 

 

 

June 1, 2015

Vacated BLM Building

 on

Riverside Drive, Susanville, CA

was

assessed at $2,303,892 in 2014

The BLM building is listed for $1.6 million with Susanville Real Estate

CAO, Richard Egan told the public that it would

cost $1.1 million to purchase this building & $600,000 to renovate

Anyone want to guess why Egan lied?

 

Will Steve Pezzullo's Big Happy Family laugh all the way to the bank again,

 if they pull off this scam ?

It's just money......public money

 

May 29, 2015

County Counsel Burns tells Bustamante

NOT TO COMPLY

with

Public Records Request

Bustamante, "So, take me to Jail"

 

 

 

May 26, 2015

Four Board of Supervisor

(Supervisor Albaugh votes No)

Vote to

Approve a $4 million loan

through

 ??? Lassen County Public Improvement Corporation ???

Video of 5/26/15 discussion and vote

 

then....................

the Lassen County Public Improvement Corporation Meets @ 3:00 PM

 

   

The LASSEN COUNTY PUBLIC IMPROVEMENT CORPORATION has not met since 2008.

Attendees: L to R: BOS Chairperson/President Bob Pyle, County Clerk/Secretary Julie Bustamante, CAO/Vice-PresidentRichard Egan, Assessor/Director Dan Schlueter, Auditor/Comptroller Diana Wemple, Treasurer/Treasuer Nancy Cardenas, Sheriff/Director Dean Growden (arrived later).

Deputy CAo Tony Shaw, County Counsel Bob Burns and KWH Secretary Eileen Spencer also attended this 17 minute meeting.

LCPIC MAY 26, 2015 AGENDA

AGENDA ITEM B

NOTE:  Nancy Cardenas attended this June 26, 2008 meeting and is listed as a Director?

The Assistant Treasurer is not a Director according to the "Bylaws"

Where are the 2009, 2010, 2011, 2012, 2013, 2014 Minutes?   The annual "fees" must be approved by the Board of Supervisors and then by the LCPIC

THIS WAS NOT DONE

 

 

 

 

 

 

 

May 24, 2015

LASSEN COUNTY CAO RICHARD EGAN

 INTENDS TO CONVENE THE BOARD OF DIRECTORS OF THIS

SHELL CORPORATION

ON

MAY 26, 2015 @ 3:00

IN THE CONFERENCE ROOM

AT 200 S. Roop Street, Susanville

 

On June 26, 2008 when the last Board of Directors allegedly met, the Directors  included the Lassen County Board Chairperson (Jack Hanson), Treasurer (Richard Egan), CAO (John Kettleson), Auditor (Karen Fouch), Assistant Treasurer ??? (Nancy Cardenas), Sheriff (Steve Warren) and the County Clerk (Julie Bustamante)

 

NOW MR. EGAN CLAIMS THAT THE ARTICLES OF INCORPORATION INCLUDE THE FOLLOWING:

Chairperson of the Lassen County Board of Supervisors

Treasurer

CAO

Auditor

Sheriff

County Clerk

Assessor

 

THE SUPERVISORS HIRED A FIRM TO ADVISE THEM ON

FINANCING THE PURCHASE OF A BUILDING FOR THE NEW DISTRICT ATTORNEY

AND

 A $1 MILLION DOLLAR GIFT TO THE HLVRA FOR CONSTRUCTION COSTS OF THEIR NEW POOL

The County does not own either property and yet hired a dubious law firm to create a shifty agreement which has been placed on the BOS Agenda for Tuesday, May 26, 2015

The County cannot qualify for Certificates of Participations because they don't OWN THE PROPERTY.  Of course the Lease/Purchase Agreement is a stretch with the way this is being set up and may even be illegal

This agreement would use the Juvenile Hall as the shell corporations' collateral (not the owner of the property) to qualify for a $4 million dollar loan from a newly formed investment company in Arizona.

Before any money is approved and released to the LCPIC, Lassen County intends to enter into another Shifty Agreement to lease the yet, unpurchased property, to the LCPIC. Then the LCPIC will lease back this unpurchased property to Lassen County for the equivilent of the loan payments LCPIC must make.

 

 

 

May 19, 2015

 

Lassen County Supervisors

Planning

"Slight of Hand"

for funding....... now what "project " was that for?

THE PLAN:

Company A gets funding from Company B who gives the money to Company C who gives it back to Company A

 

Oh, this gets even better................

 

Lassen County CAO Richard Egan

Proposes Using a 1998 Shell Corporation

to Borrow $4 million dollars

 

On June 26, 1998, Lassen County created the shell corporation

LASSEN COUNTY PUBLIC IMPROVEMENT CORPORATION

The concept, in 1998,  was to have this shell corporation borrow money to build the new Jail. This "shell" corporation does not have any assets to borrow a dollar?

In 2000, Lassen County obtained a $2,000,000 State Grant to build the Juvenile Hall at 1415 Chestnut in Susanville, CA and continues to receive State dollars to operate the Juvenile Hall.  

Lloyd Keefer is shown here cutting the ribbon opening Juvenile Hall in October of 2007

CAO Richard Egan and Supervisor Bob Pyle intend to use Juvenile Hall as collateral for the shell corporations $4 million dollar loan .

 

PRETTY SLICK GUYS BUT THERE ARE A FEW PROBLEMS

 

Lassen County built the Juvenile Hall with restricted funds. 

Lassen County owns Juvenile Hall & intends to use this property as collateral for exactly what.....a phony lease agreement?

The shell corporation (LCPIC) has no assets

 Where are the financial statements for LCPIC?

How did the current alleged "Directors" suddenly get appointed?

 

THE SHELL GAME

FOR THE SHELL CORPORATION

LCPIC intends to "lease" the "Riverside building" (?whatever that means?) and the "Lassen County Courthouse (owned by the State)" from Lassen County by giving Lassen County the proceeds from the $4 million dollar loan from TPB Investments, Inc.(formed in 2011)

and then

Lassen County rents these ??properties back from the LCPIC.Lassen County will agree to PREPAY  the rent one year in advance so  the LCPIC can make the annual loan payments (the documents state that the County can pay these "rental" payments"  from "any source", but the Tobacco Settlement fund is specifically mentioned as the source)

        WHAT IS DISTURBING IS THAT THESE AGREEMENTS UNDER NO CIRCUMSTANCE OBLIGATES THE COUNTY OR THE LCPIC

ON HOW THEY MUST SPEND

THE $4 MILLION

 

 Lassen County cannot make this lease/rental agreement for the community pool. The HLVRA owns the pool

Lassen County does not own any building on Riverside

Lassen County does not own the "Lassen County Courthouse"

Ooops............