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Scam Diego Entries for December, 2008

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Wall Street Journal Puffs Up Sam Wyly, Ignoring Offshore Tax Shenanigans Uncovered by Congressional Investigators

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In a book review Dec. 29, the Wall Street Journal gives a rave review to "1,000 Dollars and an Idea," a book by Texas billionaire Sam Wyly. James Freeman, an assistant editor of the Journal's editorial page, sings the Wyly …

San Diego Home Prices Back to Levels of March '03, Down 36% from '05 Peak

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According to Standard & Poor's Case-Shiller data released this morning (Tues. Dec. 30), San Diego home prices in October were back to their levels of March of '03. San Diego existing homes have now dropped 36.4 percent from their peak …

City of Industry to Vote Jan. 20 on $500 Million Infrastructure Bond that Would Serve Planned New Stadium

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Industry, California (also known as City of Industry) votes Jan. 20 on a $500 million infrastructure bond to serve the area in which billionaire Ed Roski Jr. has proposed building a $800 million pro football stadium. Roski and his partner …

Delicious Irony: SEC Clears San Diego Councilmembers at the Time the Public Is Learning What a Worthless Agency It Is

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The Securities and Exchange Commission has ended its investigation into the involvement of San Diego's elected officials in the fraudulent bond offerings. This comes at the very time that the SEC will be investigating itself (supposedly); it admits that it …

Lead Indicators of San Diego Economy Continue Steady Decline

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The lead indicators of the San Diego economy, compiled by University of San Diego economist Alan Gin, continued to drop in November, indicating that the good news is not arriving. The indicator has declined each month this year. The November …

County Unemployment Rate 6.9 Percent in November, Up from 4.9 Percent a Year Ago

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San Diego lost 15,300 jobs in November from a year ago, and 2,200 from October, according to data from the state's Economic Development Corp. The unemployment rate was 6.9 percent, the same as the revised rate of October, but well …

Gless, Powanda Sentenced for Roles in Peregrine Systems Fraud

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Matthew Gless, former chief financial officer of Peregrine Systems, was sentenced today (Dec. 17) to 63 months in custody for his role in the massive fraud. Former international sales director Douglas S. Powanda was sentenced to 78 months. Gless and …

Ex-Madoff Trader, Now Running Cardiff Firm, Was Asked by Hedge Firms about Those Steady Returns

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Steven Winters is the founder and managing partner of Gemini Strategies, a boutique Cardiff investment firm. His bio says that from 1994 through 1996, he was an equity and derivatives portfolio manager for Bernard L. Madoff Investment Securities in New …

Wall Street's Goldman Sachs, Which Got $10 Billion Government Handout, Paid Only 1% in Taxes

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Here's one that should start a revolution. In October, Wall Street's Goldman Sachs, supposedly the best-managed investment firm (calling itself a bank) on the Street, got $10 billion and debt guarantees from the U.S. government, according to Bloomberg.com. But this …

San Diegan Who Spearheaded Tax Avoidance Schemes for Dentists and Doctors Indicted on Tax Charges

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A federal grand jury today (Dec. 16) indicted former dentist L. Donald Guess on two counts of filing false income tax returns. Guess ran a tax avoidance operation for medical professionals named xelan Inc. Four years ago it had more …

Federal Reserve Essentially Admits It Is Fighting Depression, Not Simply Recession. It Lowers Interest Rate Target to Lowest Level Ever

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The Federal Reserve today (Dec. 16), essentially admitted it is fighting a depression, not a recession. The central bank dropped the federal funds rate, the interest that banks charge each other, to a range of zero to 1/4th of 1 …

New Website Preserves Documents from Aguirre, Gwinn Administrations

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There is a new website, www.sdcityattorney.com, that preserves documents created by former City Attorney Mike Aguirre. Importantly, this includes his 35 interim reports, which are perhaps the best record of San Diego corruption extant. The website also includes closed session …

Copley Employees Likely to Get 5% to 15% Lower Lump Sum Benefits; If Company's Pension Plan Badly Underfunded, May Not Get Lump Sums at All

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Yesterday afternoon, I posted an entry indicating that severely-ailing Copley Press will no longer be putting money into its defined benefit pension plan, although older employees will still have access to their money. New employees will not have such a …

Copley Press Tells Employees It Will Put No More Money into Defined Benefit Pension Plan

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Union-Tribune employees say they were told Friday via the Copley Press's electronic in-house communications system that the company will no longer put money into the defined benefit pension program. New employees will not get into the defined benefit program, although …

Melvyn Weiss, Once Co-Managing Partner of Notorious New York/San Diego Law Firm, Allegedly a Victim of Ponzi Schemer Madoff

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According to the Wall Street Journal of Saturday/Sunday (Dec. 13-14) one of the persons who lost money in the alleged $50 billion Ponzi scheme of Bernard Madoff is New York's Melvyn Weiss, former co-head of the now-defunct New York/San Diego …

Gardner Gets 8 Years for Peregrine Scam; His Lawyer Says Criminal Activity Going on Before Gardner Got There

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Stephen Gardner, former chief executive of Peregrine Systems, was sentenced today (Dec. 11) to eight years and one month for his role in the fraud. Gardner's lawyer, Reid Figel, said that Peregrine was engaged in criminal activity before Gardner arrived …

Moody's Says Singleton's MediaNews Almost as Sick as Tribune, Headed for Default

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Moody's Investors Service said today that William Dean Singleton's Denver-based MediaNews Group will soon be in default on its credit agreement, and its debt load is nearly as bad as the one that pushed Tribune Co. into bankruptcy. Despite well-known …

Goldsmith Continues Cheap Shots on City Website. He Criticizes Predecessor for Politicizing Office, Then Politicizes It Even More

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Newly-elected City Attorney Jan Goldsmith is stepping up his political potshots even after being elected by a landslide, and even after being criticized for the practice by media who would normally be friendly. Goldsmith is doing so on the City …

Hedge Fund in Which SDCERA Has Money Puts up Barriers to Redemptions

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The Composite International Fund of Wall Street's D.E. Shaw has set up so-called "gates" to slow down redemptions as a result of money being withdrawn. The San Diego County Employees Retirement Association has 20 percent of its money in hedge …

Union-Tribune's December House Organ Doesn't Report Circulation Figures

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For many years, the Union-Tribune has revealed its circulation figures to employees in a monthly internal publication called "Inside Edition." But the December edition does not have those numbers. Since circulation has been inexorably declining for years, and the Union-Tribune …

Tribune Co. Files for Bankruptcy, Saddled with $13 Billion in Debt and Decline in Ad Revenues

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Chicago's Tribune Co., owner of the Chicago Tribune and Los Angeles Times, filed for Chapter 11 (reorganization) bankruptcy in Wilmington, Delaware today (Dec. 8). The company has $7.6 billion in assets and $13 billion in debt. The Chicago Cubs baseball …

More Copley Competition:McClatchy's Miami Herald Reportedly on the Block

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The New York Times has reported on its website that Sacramento-based McClatchy is looking to sell its flagship Miami Herald. This would complicate the Union-Tribune's attempt to sell itself. Copley Press announced in July that it wants to unload the …

Aguirre Preparing Paper on Derivatives Market; His New Firm Will Specialize in Derivatives Legislation

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Mike Aguirre, who leaves the city attorney's position Monday (Dec. 7), is preparing a white paper on the multi-trillion derivatives market. The paper may come out later this week. In essence, it sketches how financial institutions' gambling with derivatives has …

Aguirre Sums Up Criminal Activity That Led to Pension Deficit

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British author W. Somerset Maugham penned "The Summing Up" late in his career. Ditto for Mike Aguirre, who will shortly leave the city attorney's office after having lost re-election in a landslide financed by the establishment along with organized labor. …

November's Shocking 533,000 Jobs Loss Was Actually Far Worse

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U.S. nonfarm payrolls plunged 533,000 in November -- far worse than economists expected. They used words such as "almost indescribably terrible" and "dreadful" to describe the numbers, because they were much worse below the surface. Job losses in September and …

Several Big U.S. Cities Could Be without Daily Newspapers by 2010, Says Rating Agency

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Fitch Ratings, which provides ratings on various investments, said this week that several cities could be without daily print newspapers by 2010. Fitch rates the bonds of both McClatchy and Tribune as junk. Fitch expects newspaper defaults and closures in …

At Confirmation Hearings, Will Bill Richardson Be Asked about His Role as Peregrine Board Member?

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As expected, President-elect Barack Obama named New Mexico Gov. Bill Richardson as secretary of commerce today (Dec. 4). Richardson may get a grilling at upcoming confirmation hearings. He was a key player in the Clinton administration, and came under fire …

Rancho Santa Fe Is 12th of 34 Small U.S. Towns with Highest Home Values

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Business Week Magazine, along with Zillow.com, has picked the 34 towns in the U.S. with the highest home values -- called "the most expensive small towns in the U.S." The towns have populations of fewer than 10,000 people, and there …

In Survey, San Diego Second Most Desirable Job Location. But It Can't Be the Weather; In Second Survey, Twin Cities Is Tops

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A survey of 2,500 employees and entrepreneurs by the Human Capital Institute indicates that San Diego is the second most desirable relocation destination. It was second to New York, which is also the least desirable. In citing San Diego, respondents …

Leading Indicators of San Diego Economy Take Monumental Pratfall

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The October leading indicators of the San Diego economy plunged 2.3 percent from September, the biggest percentage decline or rise since January of 2002, according to the latest data compiled by economist Alan Gin of the University of San Diego. …

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