———- Forwarded message ———-
From: Larry Mendoza
Date: Fri, Sep 24, 2010 at 12:53 PM
Subject: Pension fund abuse and lack of accountability

To Whom It May Concern:
my name is Larry Mendoza and I have major concerns with the Santa Barbara County Employees Pension Fund. Currently the Santa Barbara Board of Supervisors would have you believe the SBCERS Pension fund to have a value of 1.6 Billion dollars. In addition the fund also has an unfunded future liability of 1 Billion dollars. Since there is a history of pulling what is called “excess returns’ from any given year the actual fund value is an unknown. With no accountability to anyone how can we verify there version as fact. Now right or wrong regardless of how the funds were spent California taxpayers have the right to expect the performance in some fashion be it goods or services for the dollars removed from the fund, regardless of reason or excuse. The history of pulling “excess returns” dates back to inception and the Santa Barbara County was kind enough to provide documentation showing this abuse. Before I get into the nuts and bolts of my research I share with you a comment made during the most recent budget hearings. What does it say when a current County Supervisor makes use of words like Ponzi Scheme and Madoff while voicing her displeasure with current circumstances? After you have a chance to digest all of the data I provide please try and remember that I am only questioning the last 20 years of performance and accounting by the SBCERS Pension Fund.I bring that to light because it took 52 years of contributions and investment returns from the pension fund just to reach a value of 225 million dollars in 1989.So that works out to be in contributions or investment returns an average yearly change in fund value of only 4.32 million dollars.

Thursday, June 17, 2010
By Chris Meagher (Contact)
Article Tool

Fourth District Supervisor Joni Gray blasted the Santa Barbara County Board of Supervisors majority Friday as the quintet conducted their final deliberations on what to cut for the 2010-2011 fiscal year’s $833-million budget they were finalizing to go into effect July 1

“I’d like all of you to leave this hearing with three words,” Gray said, actually using four words to initially describe her cryptic message. “Bus, bridge, and Ponzi scheme.”

She continued, “I feel like I’m speeding down a highway in a bus and there’s a sign that says, in half-a-mile the bridge is out,’ and yet nothing is being done to stop this bus.” While people everywhere are cutting back, she said, the board was “not taking their foot off the gas.” Gray then addressed her Ponzi scheme comment, saying the board was moving money “here and there,” even making reference to Bernie Madoff. “You’re all very bright and well-meaning, but I cannot support this bus going off the bridge,” she said.

Mr Siedle you can see the whole article I referenced above @

Please review my SBCERS data sheets and math charts as I see it.

Well as you can see there is a ton on my mind but I am here today to explain why both past and present Santa Barbara elected officials such as the Board of Supervisors and County Controller Robert Gies must be criminally charged for fraud and misuse of public funds. Very quickly here in 1989 the County of Santa Barbara reported that SBCERS pension fund had a future obligation of 290 Million dollars with a value at that time of only 225 Million dollars thus only 77% funded. I was able to retrieve these figures from the Municipals bond market on Wall street. It turns out when there is a bond offer the City or County which makes the offer must give a current view of there Finances and future obligations. Now all I had to do was the following.

1- start with the 225 Million SBCERS Pension Fund value I found from a 1989 bond disclosure from Santa Barbara County. Than come forward using the investment return factor .

2- Before multiplying by the investment return factor for a given year I also added in the contributions from the county and it’s employee’s for the upcoming year.

3- Example 1989 I had 225 Million fund value than added the 14 million in new contributions from the employees and Santa Barbara County. So I went 225+14 = 239 million dollars x investment return factor of 10.5 =

4- I did this for every year and came current and my findings are located below and at both my word-press blog and at @ http://www.santabarbaracriminalcourtcorruption.blogspot.com

My results are startling and it boggles the mind to think our current Santa Barbara Board of Supervisors would have us believe there is a current unfunded future liability of 1 billion dollars. When in fact if you bring my totals to 2009/2010 than multiply by 10.5 return on investments you get a fully funded pension fund of 3 BILLION Dollars, WOW where did the math go wrong.

225 million fund value in 1989 followed by 850 Million in new contributions for 20 years. Multiply this by a average return on investments for that 20 year period of 7.6 and there is no possible way we have an unfunded pension plan. Now in order to calculate what the actual pension fund obligation was currently I simply took the 290 million pension obligation I found from the 1989 documents and again came forward. Since the rate of return to keep the fund solvent has always been 816% . So in 1989 I multipled 8.16 x 290 million dollars and carried that total over for 1990. Than again multiplied the new total x 8.16% and so on until I came to 2009. The chart I created carries a running total of pension value vs, pension obligation. It also gives you a year by year funded ratio percentage and any unfunded future liability or if bracketed that would represent a surplus.

I look forward to hearing back from you.


Larry Mendoza

From: sb_magic@hotmail.com
Subject: SBCERS Pension Fund History 1989- present Fund should be over 2 billion dollars and no short
Date: Sun, 22 Aug 2010 21:35:28 -0700
My math calculations below are for the SBCERS Pension fund starting in 1989 and coming forward. Since all yearly audits I have reviewed fail to carry a running total of pulled “excess returns on investment” this chart reflects what “should be” regardless of the current location of any pulled funds. The other item missing on all documentation regards to the pension fund is the hard dollar cost put into the Pension. In 1989 we had a value of 225 million dollars with over 850 million dollars in contributions since than. That total alone is almost 1.1 BILLION dollars. With out any additional revenue coming from 20 years of investment returns at the yearly average of 7.6 % WOW


About magicinsantabarbara

Our Santa Barbara Criminal and Civil Superior Courts often abuse’s us with illegal and unjust judgments and convictions. So I investigate, law enforcement, judge’s, elected officials and our California Public Pensions trying to expose the corruption we are being forced to accept. We must always respect and support those who practice the law in an even and ethical manner and demand it from those who do not. Here you can find data for SBCERS, VECRA, LACERA .pensions as well as others.
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