Well I am sitting here today and trying to think of how I can best explain why I do what I do. No I am not talking about rehashing my personal experiences but rather where do my concerns come from? You see once in a while when I write about a specific topic you might think at first glance why would any one question this or that. Even though I am trying to better explain my actions that is not to say people are doubting me. Oh no in fact it is because of all the positive feedback that I wish to strengthen my positions and actually get a stronger bond between you an I. As an adult my back ground was in automotive repairs, as a service or store manager. When Julie and I bought our first home I really fell in love with the mortgage industry. At one point after only two years in the mortgage field I worked my way up to Internal Sales Manager of the western United States for a sub-prime mortgage company. The sad thing is I must have worked for the only sub-prime company to get out of California in the last 15 years. My point is this I loved mortgages because everything had to balance. I had to know my rules and regulations front-wards and backwards. My percentages of income to debt, tax benefits and the characteristics of every lender I worked with. An that is how I look at these issues I write about. Here are a few quick examples of why I have questioned a particular subject that I research.
1- In January of 2010 Colleen Sterne is appointed to our Santa Barbara Superior bench by Governor Schwarzenegger . While reading about her appointment one media story said she kept her seat till 2012 and in another story Judge Sterne said her term ran six years. My concerns here were two fold . I was concerned that the Governor had stepped in and appointed a temporary fill in when that Judicial seat could have been decided in a general election in about 5 months. An what was the reason for two different answers in Judge Sternes length of term. As we all know those simple concerns have lead us to find that the possibility of election fraud may exist by many of our California Superior Court Judges.
2- Lt. Governor Maldonado and the property listed on his Form 700 disclosure at 1430 S.E. street Santa Maria Ca 953458. I saw that the parcel had been assessed for the tax year 2010. Yet the last property tax billing for this 10,000,000 dollar property was in December of 2006. So I ask why is that? I than tried and Google or Yahoo directions to that address and some how there is no 1430 S. E. Street. So once again I start to wonder. Now I currently have a personal issue with our County and my past property taxes before the Tax collector as we speak. I had questioned some past accounting practices with that office over a year ago but was stone walled. What concerns me most about my whole issue is that the dates and payments in question, well lets just say the county is reporting to me there computer files have been corrupted. They have no idea who there dealing with do they! I have just been so busy I have not created a posting yet on my property tax issues. One last thought someone did challenge me about my concerns with Mr. Maldonado’s property listed above. Funny thing is when I asked him to post his source and findings he went away?
3- The Santa Barbara County Pension Fund
Now I took a stab in the dark here. I wanted to prove the impossible and gain creditability so that my other concerns could be dealt with in a manner they deserve. But this is where everything really changed for me. Some how I put most of my personal baggage behind me and really started looking at our Government, Wall Street and all the insanity that is killing our Country. Real quick here I took a suspended prison (felony)term for a misdemeanor charge and because of that I lost my real estate license. Goldman Sachs and half of Wall Street are involved in lawsuits and paying back billions of dollars, yet they can still remain active. An how did Goldman Sachs and others lose there court cases? By someone presenting the Business, Professional, Criminal law violations they had committed in Civil court, and to me that is just insane. Where are the treason and criminal charges so these types of crimes against our economy will stop once and for all? So now back to SBCERS and why I looked into them. For starters if you just lost 143,000,000 dollars in 2008 why would you still expose the fund to further loses of the exact same type and that at one point would later hit as high as 422,000,000 dollars in losses for 2009? The real reason though is I just felt that there was misrepresentation by our elected officials specifically Robert Geis, in his White paper written in June of 2006 several things still bother me about that document. You can find a copy of the “White Paper: @ http://www.countyofsb.org/auditor/default.aspx?id=1234.
In this document lets start with the opening paragraph that claims the pension fund lost 464,000,000 dollars between 12/31/1999 an 12/31/2002. That is kind of hard to believe since 180, 000,000 was removed as “excess funds” in 99 for starters. Now that amount was equal to 17% of the funds total value or just about 1/6th. Wow an that folks is more than just pulling “EXCESS RETURNS” and should take a vote by this county’s taxpayers!. An in a later Grand Jury report they represent the SBCERS pension fund as being fully funded in 2001. Like I have said contradiction after contradiction. If there was nothing else I would have done research but there is just miles and miles of misrepresentation and flat out fraud. Santa Barbara’s Elected officials must be held accountable and under penal code 925 our Grand Jury must investigate these discrepancies in accounting.
So today’s posting is really just about some charts and graphs and how much they seam to prove absolutely nothing that there were supposed to. In fact they will leave you wondering what else I have to bring forward. Let me ask you this; In 2002 as reported to the State Controller of California the SBCERS pension fund held in assets 169,000 dollars per member. In 2004 it held 213,000 per member in assets. How than could the alleged unfunded liability grow during the same time period as our assets per member grew, those two numbers tend to work in just the opposite of each other.. When the Ventura or VECRA pension fund held 216,000 in assets per member they were 120% funded at the time. So I start and share with you the amortization payment schedule and move on from there.
As always I ask that if you have enjoyed this posting please share this and my other works with as many people as you can.
Larry ‘ Magic” Mendoza
|In this chart we see that the actual market performance was above the required amount and for many years there could be no unfunded future liability!|
The chart on top contradicts Robert Geis and his 2006 document that claims the fund lost over 400 Million dollars between 12/99/and 12/2002! It also shows that the fund was solvent even if for a brief moment in 2007. When the lines intersect that would reflect that the past amortization payments would cease until a new unfunded liability showed up. Now the chart below is the exact same chart only this chart reflects there was always an unfunded liability issue with the SBCERS fund. Some “Magical” way the lines on the bottom chart never intersect. Now do you see the problem here and we are talking about hundreds of millions of dollars! Now neither of these charts seam to reflect the market value of the fund as the chart above does in relationship to the green line..
Now the chart above shows a strong and healthy Pension fund although you cannot see where 180,000,000 dollars had been removed in 1999 as reported by Robert Geis in the “White Paper”. The chart below shows two negative years in terms of investment returns 1994 and 2001. The chart above shows no such losses. Hundreds of millions and I believe eventually we will be talking about over 1 BILLION DOLLARS in CORRUPTION an FRAUD. I am just scratching the surface. All these documents were supplied by our Santa Barbara County and the SBCERS pension fund!
More California State Controller reports from 1996- 2007 involving all of the different California Pension funds can be found @ http://www.sco.ca.gov/ard_locrep_retirement.html