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UncoveredSLO Headline News

UPDATE: Additional allegations surface against local charity

By KAREN VELIE

      Amidst a flurry of questions about how local attorney Eric Parkinson disperses donations earmarked for the needy, his supporters have changed their stories repeatedly to dispute allegations of misappropriations while a reporter in Sri Lanka voices new allegations.

      Last week, CalCoastNews reported that Parkinson took out more than 60 percent of monies donated to the VeAhavta nonprofit, a Sri Lanka orphanage and senior care facility Parkinson manages from San Luis Obispo, before sending the remaining monies to a self-declared cleric alleged to have defrauded donors from throughout the world.
 

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Posted: Wednesday, July 1, 2009 5:28 pm - 12 opinions posted
HFI’s Jay Miller forced into bankruptcy

By KAREN VELIE

      Several investors in Hurst Financial Inc’s (HFI) hard money lending schemes thrust HFI President Jay Miller into involuntary Chapter 7 bankruptcy citing Miller’s failure to repay loans he personally guaranteed.

      Before their meltdown a little more than a year ago, HFI’s key players’ lifestyles were reminiscent of Fitzgerald’s Jay Gatsby: lavish parties, exotic cars, and high rolling excursions in their monogrammed private aircrafts. Investors claim Miller and his associates used construction monies to live the high life, while paying interest from one account to fund another in an alleged Ponzi scheme.

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Posted: Monday, June 29, 2009 6:18 pm - 31 opinions posted
Local lawyer runs questionable charity

By KAREN VELIE

      A local attorney takes out more than 60 percent of monies donated to a nonprofit he oversees before sending the remaining monies to a self declared cleric alleged to have defrauded donors from throughout the world, according to tax documents and news sources.

      Founded in 2001 by San Luis Obispo attorney Eric Parkinson, VeAhavta’s stated mission is to “lovingly nurture the physical, emotional and spiritual well being of orphans and destitute elders in a secure home.” Donations allegedly support the day to day operations of the Grace Care Center, an orphanage and home for seniors.

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Posted: Friday, June 26, 2009 6:57 pm - 68 opinions posted
Investors torture financial advisor
    
       A group of four seniors kidnapped, bound, and tortured a financial advisor who they claim was responsible for losing 2 million pounds they had invested in real estate projects. Capturing and binding the advisor took time as his kidnappers kept “running out of breath,” according to MailOnline.

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Posted: Wednesday, June 24, 2009 12:55 pm - 18 opinions posted
UPDATE: Shores pays thousands to avoid paying investors

By KAREN VELIE

      North county developer Jimmie Shores, his brother Ronnie Shores, and Hurst Financial Inc. (HFI) President Jay Miller, in twisted and conflicting deposition testimonies and interviews, each maintains one of the others is responsible for paying back $700,000 to a group of 20 investors, primarily seniors. 

      HFI granted Jimmie Shores two short term construction loans in 2006. Miller, in turn, placed 20 investors on the deeds of trust of the two parcels used to secure the debts. Located in northeastern Atascadero, the proposed sites of two custom homes remain bare lots except for a tangled crop of weeds.

      Earlier this year, Jimmie Shores told investors he had received only $15,000 of the $700,000 he was promised by HFI. After copies of the canceled checks surfaced showing the loans were fully vested by the end of 2006, Jimmie Shores said he didn’t have to repay the debt because his brother Ronnie Shores had stolen the money.

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Posted: Tuesday, June 23, 2009 11:48 pm - 5 opinions posted
UPDATE: Employees accused of pilfering county vehicles

By KAREN VELIE

      Randy Ghezzi and Max Keller remain on paid administrative leave while the San Luis Obispo County Human Resources Department investigates allegations the pair pirated county equipment, sources said.

      According to multiple sources, road crew supervisor Keller was caught using county equipment for his own use over a weekend. Keller allegedly commandeered a county truck to transport wood, previously cut with the use of county equipment, to a relative’s home to be offered for sale.    

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Posted: Friday, June 19, 2009 4:04 pm - 87 opinions posted
Tribune exclusive, Wilcox accuses Edge of sexual harassment
  
        The Tribune reports that Assistant County Administrator Gail Wilcox has filed a lawsuit that levels allegations of sexual harassment against deposed County Administrator David Edge.

       In May, CalCoastNews first broke the news that Wilcox had lodged allegations of sexual harassment against Edge.

        The strangest part of the lawsuit, which names the San Luis Obispo County Board of Supervisors as Edge’s codefendants, is the rapidly promoted Wilcox’s claims of workplace discrimination as one of her causes of action. This is, in fact, one of the county’s steamiest law suits ever, according to a Tribune update.

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Posted: Thursday, June 18, 2009 1:40 am - 38 opinions posted
Fraud lawsuit filed against Heritage Oaks Bank and Stewart Title

By KAREN VELIE

      Investors have filed a lawsuit alleging Stewart Title and Heritage Oaks Bank (HOB) aided and abetted and/or conspired with Hurst Financial Inc. (HFI) in defrauding hundreds of seniors through illegal investment schemes.

      The suit filed by more than 300 investors against Stewart Title, HOB, and HFI lists eight complaints including conspiracy, fraud, financial elder abuse, and negligence. Investors are seeking punitive as well as compensatory damages.

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Posted: Monday, June 15, 2009 8:28 pm - 26 opinions posted
“Con man” misleads Hertel-Fowler bankruptcy trustee

By KAREN VELIE

      Bankruptcy court trustees are investigating claims that businessman Rob Rossi and the City of Atascadero are concealing assets of developer R.W. Hertel and Sons in an attempt to help the bankrupt home builder avoid paying creditors and taxes.

      Trustees began their investigations despite information that the man making the allegations is known to have duped Ross Perot, ABC’s Peter Jennings, and the FBI.  

      Scott Barnes is infamous for convincing Perot to drop his bid for the presidency due to information Barnes was accused of constructing. Barnes has a resume that includes serving time for fabricating evidence, illegal wire tapping, giving false testimony, and sending government investigators on wild goose chases, according to a
Times article.

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Posted: Friday, June 12, 2009 9:32 am - 24 opinions posted
County employee threatens retaliation

By KAREN VELIE

      Under fire regarding alleged workplace transgressions, a San Luis Obispo County department manager has threatened to go after employees who divulged he is on paid administrative leave.

      “You can’t write this, it’s not public information,” said Road Maintenance and Operations Manager Randy Ghezzi. “If I find out who told you, I’m going after them. We signed papers we can’t talk at all.”

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Posted: Wednesday, June 10, 2009 1:21 pm - 24 opinions posted
Blackburn plans to view things through a lens
Blackburn plans to view things through a lens
Daniel Blackburn
Blackburn plans to view things through a lens

      Dan Blackburn, co-editor and co-founder with Karen Velie of CalCoastNews.com, is moving on. Blackburn’s Central Coast News Agency (CCNA), which he formed in 2005, will concentrate on video production with emphasis on local and state issues of special significance.

      He will contribute articles and video news clips to CalCoastNews.com. “I’m a captive of the visual,” Blackburn said, “convinced that a picture truly is worth a thousand words. And a good piece of video is worth a thousand pictures.”
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Posted: Tuesday, June 9, 2009 9:44 pm - 18 opinions posted
Hertel and Fowler court ordered to appear

By KAREN VELIE

      Following an emergency motion, a federal judge ordered R.W Hertel and Sons’ principles Ronald Hertel and Robert Fowler to appear in bankruptcy court or face possible arrest, according to the June 4 order.

      U.S. Bankruptcy Judge Robin Riblet signed the order following an emergency and ex parte motion by court assigned trustee Sandra McBeth.

      “Due to the many allegations of impropriety and the inability to obtain information, the appearance of the principles Fowler and Hertel, are absolutely necessary and time is of the essence,” McBeth says in her motion in which she also notes the “threat of actual removal or destruction of assets of this case.”

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Posted: Sunday, June 7, 2009 10:24 pm - 8 opinions posted
Paso Robles Police officer presides over fraudulent charity
Paso Robles Police officer presides over fraudulent charity
Paso Robles Police Sgt. Nicki Woods
Paso Robles Police officer presides over fraudulent charity

By KAREN VELIE

      State Attorney General Edmond G. Brown filed a lawsuit against the California Organization of Police and Sheriffs (COPS) alleging they engage in “unlawful, unfair, and fraudulent business practices,” on May 29.

      Paso Robles Police officer Nicki Woods currently holds the position of board president of the agency. The state complaint lists 13 causes of action that include allegations that the Civic Development Group (CDG), the telemarketing firm COPS contracts with, repeatedly deceived donors.

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Posted: Wednesday, June 3, 2009 2:34 pm - 30 opinions posted
U.S. Marshals seize Hertel and Fowler’s yacht, guns, and ammunition
U.S. Marshals seize Hertel and Fowler’s yacht, guns, and ammunition
An example of a 1988, 103-foot Broward yacht
U.S. Marshals seize Hertel and Fowler’s yacht, guns, and ammunition

By KAREN VELIE

      Federal authorities seized bankrupt developers Ronald Hertel and Robert Fowler’s 2005 Bertram yacht including guns and ammunition, and a 1988 Broward yacht under purchase by Hertel earlier this year as part of an ongoing effort to recoup funds the financially troubled developers owe to lenders.

      U.S. Marshal Adam Torres acted on a court order requested by City National Bank to pay off a $1.75 million mortgage the bank says Hertel and Fowler owe on the “Dram Buoy,” a Bertram yacht the developers registered in the Cayman Islands. Hertel and Fowler haven’t made monthly payments of $8,333 since November 2008.

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Posted: Monday, June 1, 2009 1:21 pm - 42 opinions posted
FBI accuses Miller of racketeering and money laundering
FBI accuses Miller of racketeering and money laundering
Moving day at the Millers
FBI accuses Miller of racketeering and money laundering


By KAREN VELIE

      The FBI seized proceeds from Hurst Financial Inc. (HFI) President Jay Miller’s home May 27 because of allegations of racketeering, money laundering, and wire fraud, according to the seizure warrant.

      “A racket is an illegal business, usually run as part of organized crime. Engaging in racket is called racketeering,” according to Wikipedia.

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Posted: Friday, May 29, 2009 12:01 am - 90 opinions posted
Elementary school students suspended for kill list and sexual threats

By KAREN VELIE

       A group of parents allege Santa Margarita Elementary School officials have failed to provide a safe environment and have chosen to keep their children home until their concerns are addressed.

       After numerous complaints, two Santa Margarita Elementary students have been suspended in the past few weeks for threats against other students. A fourth grader was sent home for producing a hit list and a third grader was suspended for making sexually violent threats against his classmates.

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Posted: Monday, May 25, 2009 6:12 pm - 99 opinions posted
Ask Edge: Define harassment

      Recent reports of the firing of county administrative chief David Edge include admissions by Edge to The Tribune that he supported his second in command by providing her a book called “Getting Naked.”  Gail Wilcox responded by leveling a "hostile workplace" complaint.

      Thanks to KSBY interviews with Edge, you can now view the county’s ex-leader explaining how he did nothing wrong and how deserving Wilcox was of her promotions through the ranks. [KSBY]

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Posted: Thursday, May 21, 2009 12:40 am - 22 opinions posted
Gearhart hiding assets
Gearhart hiding assets
Gearhart's 1935 Packard
Gearhart hiding assets

By KAREN VELIE

      Bankruptcy trustees have seized a collectable car and are looking into allegations ex-North county developer Kelly Gearhart and his wife, Tamara Lowe, have hidden assets during their high profile bankruptcy.

      Bankruptcy trustees seized a yellow 1935 Packard Gearhart and Lowe owned because the couple failed to disclose the asset in their bankruptcy filing, said attorney David Farmer with the law firm of Farmer and Ready.

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Posted: Wednesday, May 20, 2009 6:32 pm - 47 opinions posted
David Edge fired by supervisors


By DANIEL BLACKBURN

       San Luis Obispo County's top administrator, David Edge, was fired Tuesday afternoon by the Board of Supervisors following a week of speculation about his fate. Edge spoke to the board for 10 minutes before the vote, calling their decision "a foregone conclusion."

       Then the board voted 5-0 to terminate Edge "for no cause" as allowed by a contract Edge himself wrote.

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Posted: Tuesday, May 19, 2009 8:07 pm - 24 opinions posted
Guth and Yaguda plead not guilty

By KAREN VELIE

      Estate Financial Principles Karen Guth and Joshua Yaguda Friday pleaded not guilty in San Luis Obispo Superior Court to charges they defrauded millions of dollars from more than 3,000 people.

      Prosecutors have charged Guth and her son Yaguda with 26 felony counts associated with a hard money lending business the pair led.

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Posted: Saturday, May 16, 2009 12:00 am - 17 opinions posted
CMC lieutenant flees from officer

By KAREN VELIE

      A California Men’s Colony (CMC) lieutenant slipped away from a Pismo Beach police officer who had arrived to break up a fight in which the intoxicated officer was involved at Harry’s Night Club and Beach Bar on April 17.

      Employees of the popular nightclub called for police to assist them in breaking up a clash CMC Lt. Charlie Romero was having with a woman in the bar, an employee of the club said. The unnamed woman hit Romero and the pair began to scuffle, the employee added.

      Pismo Beach Police Patrol Officer Greg Benson arrived at the saloon to find Romero’s sparring partner had taken off, and the lieutenant apparently too intoxicated to drive home.

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Posted: Friday, May 15, 2009 3:19 pm - 7 opinions posted
Edge’s job on the line

By KAREN VELIE

      The County Board of Supervisors will evaluate whether to terminate County Administrative Officer David Edge at their next meeting on May 19.

      Both Edge and Assistant County Administrative Officer Gail Wilcox are on paid administrative leave. A source told CalCoastNews the absences were due to allegations of sexual misconduct.

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Posted: Thursday, May 14, 2009 2:25 pm - 19 opinions posted
CalCoastNews on the distribution 'no fly list'

      County officials did not provide CalCoastNews the press release regarding the possible termination of David Edge and the appointment of Jeff Hamm. This is not uncommon.

      Because of this, the following e-mail was sent to County Counsel Warren Jensen:

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Posted: Thursday, May 14, 2009 2:22 pm - 23 opinions posted
Who’s running SLO County?

By KAREN VELIE

      San Luis Obispo County’s top two administrators are currently missing in action, and county employees have been ordered not to discuss their absences.

      Monday, a source told CalCoastNews that County Administrator David Edge had stepped down following allegations of sexual harassment leveled by Assistant County Administrator Gail Wilcox. Our source alleged that the Board of Supervisor’s closed session discussion on May 8 regarding the allegations had resulted in the pair being placed on paid administrative leave.

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Posted: Tuesday, May 12, 2009 12:25 pm - 40 opinions posted
North County water plans sidetracked by bad counsel?

By DANIEL BLACKBURN
       Paso Robles officials may have been receiving less than stellar legal advice throughout the city’s lengthy process to secure a future water supply, a former mayor and new county supervisor suggested last week. Frank Mecham’s comments come on the heels of the city council’s forced decision to place the question of paying for water before city voters. 
         “If you ask legal counsel every single time, are we okay with this, and every single time they answer yes, then maybe you need to look at legal counsel as maybe having been wrong,” said Mecham. Asked in a subsequent conversation to elaborate, Mecham wondered, “What would we do if what we were being told wasn’t right? What are your options at that point? Do you go back two years? How far back?”
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Posted: Sunday, May 3, 2009 10:44 pm - 15 opinions posted
Tribe’s casino pact with white men suspect

By KAREN VELIE and DANIEL BLACKBURN

      A secret, decade-long, eight-phase strategy by a group of local investors –  including one notorious individual now under investigation for fraud – outlines plans for construction of a Indian gaming casino in San Luis Obispo County and anticipates huge profits for its principals, confidential documents obtained by CalCoastNews reveal.

      Those documents show that Kelly Gearhart, a North County developer with ties to Hurst Financial Inc. (HFI), is a primary partner in the syndicate. Gearhart’s questionable land dealings, bankruptcies, and financial losses have caught the attention of law enforcement.

      Gearhart has linked up with attorney Grigger Jones, Chris Molina and Dan Phillips to sign a contract with the Salinan Tribe of San Luis Obispo County to “develop a large community self-sustaining, green energy producing Indian reservation development,” according to the project's business plan.

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Posted: Tuesday, April 28, 2009 5:03 pm - 73 opinions posted
EFI judge slashes lawyer fees

By KAREN VELIE

      A federal bankruptcy judge slashed fee requests and ordered professionals working on the Estate Financial Inc. (EFI) bankruptcy to practice frugality in an attempt to protect assets for EFI investors at a hearing on Wednesday in Santa Barbara Federal Bankruptcy Court.

      “I don’t want to see money frittered away on fees,” Judge Robin Riblet said. “No one should be surprised; I took a cleaver to the fees.”

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Posted: Thursday, April 23, 2009 6:28 pm - 15 opinions posted
Los Osos sewer project tainted by ’expired’ crime
Los Osos sewer project tainted by ’expired’ crime
First District Supervisor Frank Mecham wants to move cautiously on Los Osos contract.
Los Osos sewer project tainted by ’expired’ crime

By DANIEL BLACKBURN

      County planning commissioners Thursday will consider a proposal for construction of Los Osos’ contentious wastewater project, a mission now shadowed by a documented crime.

      Despite the existence of substantial evidence of unlawful backdating of key contract agreements, executed by now departed officials of the Los Osos Community Services District (LOCSD), county planners are moving toward a decision that could ratify what critics are calling “a fatally flawed procurement process.” Several formal complaints by district officials to San Luis Obispo County District Attorney Gerald T. Shea, starting in 2005 and detailing allegations of potential conflicts of interest and other unlawful activities, were eventually brushed aside.

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Posted: Wednesday, April 22, 2009 11:07 pm - 55 opinions posted
Picking at bones of EFI: Lawyers wrangling

By KAREN VELIE

        During the latest battle over assets of failed Estate Financial Inc. (EFI) , attorneys for trustees, former co-owner Charlie Applebaum, Joshua Yaguda’s wife, and Heritage Oaks bank argued their clients alleged claims at an asset hearing on Friday. 

        San Luis Obispo Deputy District Attorney Steve von Dohlen objected to Joeli Yaguda’s request that the court recognize an undocumented ownership she claims to have in the Willow Creek Olive Ranch. Currently, Mrs. Yaguda manages the operation under the watchful eye of the district attorney’s office. Von Dohlen noted that “Mrs. Yaguda has done a good job managing the property.”

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Posted: Sunday, April 19, 2009 10:46 pm - 19 opinions posted
Atascadero man suspected of beastiality, producing child porn
Atascadero man suspected of beastiality, producing child porn
Bradley Brainard
Atascadero man suspected of beastiality, producing child porn


By KAREN VELIE

      A multi-agency task force is investigating a subcontractor with the California Men’s Colony after discovering videos of the man having sexual relations with both a child and his dog, sources said.

      Suspecting the 49-year-old plumber of marijuana, narcotics, and cell phone smuggling, investigators from the California Department of Corrections Office of Internal Affairs obtained a search warrant for Bradley Brainard’s home and vehicle, sources said. On March 26, investigators entered the unsuspecting man’s home in Atascadero while he was working at the prison. Inside the home, investigators discovered several pounds of marijuana, along with videos of the man sexually assaulting a child, and also his dog, sources said.

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Posted: Wednesday, April 15, 2009 3:44 pm - 32 opinions posted
Grand Jury wants fix of sheriff’s evidence lockers

By DANIEL BLACKBURN

       Property room policies and procedures followed by sheriff’s deputies are “lax” in some instances, and the 2008-09 San Luis Obispo County Grand Jury has recommended updates and monitoring of those facilities.

       CalCoastNews reported in December 2008 that problems existed with least one evidence room, and that authorities were concerned that evidence chains of custody might be compromised. The Grand Jury’s current report “found no indication” of compromise.

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Posted: Saturday, April 11, 2009 4:50 pm - 14 opinions posted
Ambushed by SLO law and order

By KAREN VELIE

       A Morro Bay man wrongly accused of two robberies now attributed to the notorious and just-captured “Sleeves Bandit” remains in county jail as San Luis Obispo police and district attorney’s officials seek a graceful exit from a potentially embarrassing case of mistaken identity.
       Despite a clear resemblance between the two men, a preponderance of evidence has been presented in San Luis Obispo County Superior Court strongly suggesting that 49-year-old Freddy Haworth was not responsible for two November 8 armed robberies, one at Starbucks on South Higuera, and another at San Luis Floral and Gifts on Marsh Street.

      Sources reported Michael Anthony Koselka, 54, the so-called “Sleeves Bandit,” snagged in Marysville Wednesday, confessed to the armed robberies Haworth is accused. But none of this has kept San Luis Obispo Police Capt. Ian Parkinson and Det. Erik Vitale from questioning a judge’s decision to dismiss the case.
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Posted: Thursday, April 9, 2009 8:28 pm - 44 opinions posted
Hurst’s Miller alleges Shores brothers defrauded investors
Hurst’s Miller alleges Shores brothers defrauded investors
Jimmie Shores said he doesn't like to be photographed.
Hurst’s Miller alleges Shores brothers defrauded investors

By KAREN VELIE

     Prominent North County developer Jimmie Shores says he doesn’t have to repay a $700,000 hard-money loan because his brother, Ronnie Shores, stole the money, while Hurst Financial President Jay Miller, maintains the Shores are trying to defraud investors.

     “I don’t think he (Jimmie Shores) had any intention of building anything,” Miller said. “He never even took out the permits. I took them out and paid for them.”

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Posted: Monday, April 6, 2009 6:17 pm - 60 opinions posted
Heritage Oaks Bank versus the investors

By KAREN VELIE and DANIEL BLACKBURN

      Heritage Oaks Bank is battling with Estate Financial Inc. and Hurst Financial investors over first place in the quest for financial compensation.

     Attorneys for the bank are chasing first position in the pursuit for assets of fraud suspects Karen Guth and Josh Yaguda Estate Financial Inc. (EFI), and Hurst Financial, and in some cases, trying to supplant individual investors. Bank officials have attempted to foreclose on properties in which hundreds of investors, primarily retired locals, already have a prior financial stake.

     In addition, a large, unsecured loan made by Heritage Oaks Bank to Guth, Yaguda, and high-rolling developers created a false air of credibility that may have duped some hard-money investors.

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Posted: Saturday, April 4, 2009 10:45 am - 10 opinions posted
Chancellor immobilizes Cal Poly’s proposed fee increase

By KAREN VELIE

      California State University Chancellor Charles B. Reed informed California Polytechnic State University President Warren Baker that he will not approve a student fee increase at this time, said Cal Poly Provost Bob Koob Tuesday.

      Students voted earlier this month to increase fees $100 to $200 per quarter to protect their degrees and help guarantee the availability of classes and labs.

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Posted: Wednesday, April 1, 2009 12:30 am - 9 opinions posted
Atascadero’s C.R. Lara loses $750,000 judgment
Atascadero’s C.R. Lara loses $750,000 judgment
Mustang Village Mobile Home Park was deemed "too dangerous" for owner to visit, according to C.R. Lara. -- CalCoastNews photo
Atascadero’s C.R. Lara loses $750,000 judgment

By DANIEL BLACKBURN
       A trusted financial advisor alleged to have systematically looted a client’s account over a four-year period has been ordered to pay more than $750,000 to Liz Berman, owner of an Atascadero mobile home park. The February order against Cuauhtemoc Roa (C.R.) Lara includes $100,000 in punitive damages.
       Lara, an erstwhile San Luis Obispo County stockbroker, controlled investments for the Liz Berman Family Trust for more than two decades. Lara also managed one of that trust’s major assets, the Mustang Village Mobile Home Park in Atascadero, purchased in 2004 at his behest.
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Posted: Monday, March 30, 2009 5:34 pm - 2 opinions posted
McCarthy bagged $56 million in earmarks

       Remember just last week, when Rep. Kevin McCarthy (R-Calif.) labeled his peers who are taking earmarks as bank robbers, and voiced his strong opposition to project funding requests? It turns out that the congressman sponsored $56 million in legislative earmarks in 2008, with $282,000 going to the San Luis Obispo County Sheriff’s Department.

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Posted: Monday, March 30, 2009 3:23 pm - 9 opinions posted
BULLETIN: FBI, local law seeking bandit
BULLETIN: FBI, local law seeking bandit
The Sleeves Bandit has a history in this county.
BULLETIN: FBI, local law seeking bandit

       Federal authorities and investigators from San Luis Obispo and Morro Bay police departments are seeking a man dubbed the “Sleeves Bandit” who is suspected of robbing a long list of at least 15 California banks, including several in this county.

       He’s described by the FBI as a white male, early to mid 50s, short white or gray hair, 5'10" - 6' tall, medium build and weighing 180 to 200 pounds. He has assaulted victims during some of his “takeover-style” robberies.

       A reward is offered. In Los Angeles, the FBI may be reached 24 hours a day by calling 1 888 CANT HIDE (or 888 226-8443).

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Posted: Friday, March 27, 2009 6:16 pm - 2 opinions posted
Are they stifling the people’s participation?

       Do you ever get the feeling that government – even at its most basic, local level – exists only to serve itself? And that local media often actively promote that misconception? Check out The Roadrunner today, who questions the local daily’s pandering to officialdom.
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Posted: Friday, March 27, 2009 1:58 pm - 5 opinions posted
U.S. trustee objects to EFI fees

By KAREN VELIE and DANIEL BLACKBURN
       A federal bankruptcy judge overseeing the division of assets of failed North County hard money lender Estate Financial Inc. (EFI) balked Wednesday at professional fee requests totaling nearly $4 million and said she will examine those claims more closely. 

       Trustees of EFI’s funds sought the court's approval of the fees for themselves, attorneys, and others working on EFI’s  bankruptcy proceedings during a hearing in a Santa Barbara U.S. bankruptcy court so that they could start dispersing funds monthly to professionals working on the bankruptcy.
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Posted: Wednesday, March 25, 2009 9:42 pm - 24 opinions posted
Unequal justice favors sheriff in domestic fight
Unequal justice favors sheriff in domestic fight
Did Sheriff Pat Hedges receive special treatment following recent domestic disturbance?
Unequal justice favors sheriff in domestic fight

By KAREN VELIE

       Laws written to protect domestic abuse victims were apparently sidestepped by officials of the San Luis Obispo County Sheriff’s Department in an attempt to protect the county’s top cop, Sheriff Pat Hedges.

       Hedges' wife, Sandy Oneal-Hedges, called a 911 operator in January after the sheriff, according to sources, blocked her exit from a room while screaming profanities at her.

       Frightened by the argument, one of two young children in the home entered the room. Sheriff Hedges then turned his verbal assault on the eight-year-old child, said a source who asked to remain unidentified.

 

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Posted: Wednesday, March 25, 2009 3:58 pm - 23 opinions posted
EFI financial battle hints at new suspects

By KAREN VELIE

      A third figure emerged as a possible suspect in fraud precipitating the collapse of hard money lender Estate Financial Inc. (EFI) during yesterday's courtroom squabble over  the remains of the once rich and influential entity.

      San Luis Obispo County Superior Court Judge Jac Crawford said questions linger about one-time co-owner Charlie Applebaum’s possible participation in alleged EFI crimes. Crawford also pointedly wondered about the legitimacy of claims put to the court by a gaggle of claimants, including Heritage Oaks Bank.

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Posted: Tuesday, March 24, 2009 3:54 pm - 17 opinions posted
AG asked to probe Dancing Star animal slaughter
AG asked to probe Dancing Star animal slaughter
Sue Stiles left the bulk of her $60 million estate to care for ailing animals.
AG asked to probe Dancing Star animal slaughter


By KAREN VELIE

       Systematic killing of protected animals at the Dancing Star Foundation’s Cayucos sanctuary and excessive salaries of a husband-wife team of self-proclaimed environmentalists may violate the non-profit corporation’s filings with the state of California.

       Lucy Sheldon, a with assistance from the Animal Place Sanctuary, applied to California’s Secretary of State for the non-profit corporation’s filings and said she will send them to the Attorney General with a request seeking an investigation.

       Sheldon and the Animal Place will join complaints of numerous animal welfare groups from throughout the nation who have asked the Attorney General’s office to determine if Tobias and Morrison’s management of the Dancing Star Foundation violates non-profit corporation and IRS laws.

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Posted: Monday, March 23, 2009 3:56 pm - 19 opinions posted
Sheriff’s spokesman Bryn in Parkinson’s corner

By DANIEL BLACKBURN
       Sheriff Pat Hedges won’t endorse a successor just yet, but his department spokesman isn’t bashful about trumpeting his choice. Rob Bryn wrote and distributed a press release last week announcing the candidacy of Ian Parkinson, a captain in the San Luis Obispo Police Department. Hedges said recently he will not run for a third term.
       Bryn, who describes himself as “the official spokesman for the Sheriff’s Department,” said he sent the e-mail announcement late at night from his home computer, and testily defended his actions.
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Posted: Sunday, March 22, 2009 10:34 pm - 11 opinions posted
Gold for some: EFI trustees bill estate $4.5 million
Gold for some: EFI trustees bill estate $4.5 million


By KAREN VELIE

      While most people touched by the Estate Financial Inc. (EFI) debacle have been monetarily devastated, a select few are  in line to do quite well. Trustees and their special attorneys have collected, or are requesting, compensation of $4.5 million for their effort to organize the failed North County lenders’ debts.

      Charges includes approximately $4 million for the current trustees and their staff and about $500,000 in charges from two previous trustees. That averages more than $20,000 a day.

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Posted: Friday, March 20, 2009 11:42 pm - 10 opinions posted
UPDATE: Unmasking Dalido’s mysterious foe

By KAREN VELIE

      Centervest, the group that contracted to take the torch from Ernie Dalidio and propel his proposed development through the system, has backed out, reportedly because of the economic downswing. Meanwhile, Dalido’s team continues attempts to unmask their mysterious foe, the Responsible County Development LLC.

      Centervest principles John Wilson, Rudy Bachman, and Tom Morrell have elected to focus on their Promenade shopping center after learning Gottschalk’s was following in the footsteps of Mervyns and planning to shut their doors, sources said. Kohl’s is likely to replace Mervyns, and Macys is a probable candidate for the Gottschalk’s site.

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Posted: Wednesday, March 18, 2009 10:36 am - 6 opinions posted
The Roadrunner's back, with advice for local bankers

     There's a lot to be said for candid conversation, and The Roadrunner thinks that banks taking TARP money -- like Heritage Oaks -- would be a lot better served if officials were a little more forthcoming. Those AIG bonuses are a reflection of the same kind of arrogance The Roadrunner perceives locally. See if you agree. -- THE EDITORS

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Posted: Tuesday, March 17, 2009 10:28 pm - 5 opinions posted
Medical pot icon Charlie Lynch gets national attention

       ABC’s John Stossel explores an American anomaly -- medicinal marijuana which is legal in some states, including California, but unlawful under U.S. law. Stossel’s third segment of his series “Bailouts and Bull” examines the extraordinary case of Charles Lynch of Morro Bay, who was arrested and convicted on federal charges after San Luis Obispo County Sheriff Pat Hedges initiated action against the business.

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Posted: Sunday, March 15, 2009 7:36 pm - 14 opinions posted
Lou Dobbs to Cal Poly President: “bureaucratic moron”

      CNN’s Lou Dobbs recently called out California Polytechnic State University President Warren Baker for squelching diversity and free speech.

      “Let me say this to Cal Poly's president, you sir are a coward and a fool and as far as I’m concerned, just this side of a fascist,” Dobbs said on CNN.

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Posted: Saturday, March 14, 2009 1:09 pm - 17 opinions posted
Sand, sun, bailout bucks for Heritage Oaks Bank officials
Sand, sun, bailout bucks for Heritage Oaks Bank officials


By DANIEL BLACKBURN

       If members of Heritage Oaks Bank’s board of directors and high ranking officials must kill a little time waiting for the U.S. government to deliver their allotment of $21 million in taxpayer bailout money, they might as well do it on a Hawaiian beach. And that’s what a group of at least six, including bank CEO Larry Ward, is doing this week.

       An employee of the bank described the event as “the board’s annual trip to the islands.” Prior to leaving, officials informed employees of impending pay cuts and lost bonuses, sources said.

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Posted: Thursday, March 12, 2009 11:22 pm - 18 opinions posted
Copeland grip on downtown SLO nightmare for some
Copeland grip on downtown SLO nightmare for some
Has downtown San Luis Obispo become the private domain of developer Tom Copeland? It's not unimaginable. -- Photo by Daniel Blackburn
Copeland grip on downtown SLO nightmare for some


By DANIEL BLACKBURN

       There are nicknames aplenty for the city of San Luis Obispo, and many have a commonality, the name Copeland: “Copelandville,” “Copelandburg,” “Copeland Kingdom,” and of course, “Cope-Land, ” to list but a few.

       References to the Copeland family, and its out-front principal, Tom, as the reigning royalty of downtown San Luis Obispo are delivered with alternating respect and sarcasm, but Tom Copeland’s influence is undeniable. He and his reclusive brother Jim have developed the Downtown Centre, the Court Street shopping center, and will construct the controversial Chinatown project. He also has purchased a two-story building and parking lot at Higuera and Morro streets, and recently told SLO Realty.com that he has not yet determined a use.

       But is the county’s largest city, known and appreciated nationally for its small-town ambiance and its quaint, casual character, selling out to bigness? More importantly, are city officials giving special consideration to Tom Copeland?

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Posted: Wednesday, March 11, 2009 2:58 pm - 15 opinions posted
Tribune slashing jobs as McClatchy freefalls
Tribune slashing jobs as McClatchy freefalls
The Tribune may be under more red than just the awnings. -- Photo by Daniel Blackburn
Tribune slashing jobs as McClatchy freefalls

By KAREN VELIE

       San Luis Obispo County’s daily newspaper, The Tribune, will terminate seven employees, and its top officials are reported to be warning of massive layoffs to come in the wake of a similarly foreboding announcement this morning by parent company McClatchy Newspapers Inc.

       Tribune executives told staff, said one employee, that “they are facing bankruptcy if [the newspaper] is not sold within 30 days." 

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Posted: Monday, March 9, 2009 4:18 pm - 48 opinions posted
Fire crews battle blaze in downtown Atascadero
Fire crews battle blaze in downtown Atascadero

      Fire crews continue to monitor the smoldering remains of an older commercial building on El Camino Real in Atascadero near the Carlton Hotel.
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Posted: Saturday, March 7, 2009 12:28 pm - 9 opinions posted
Bush Administration okayed pitting military against you

By THE EDITORS

      Was the U.S. military preparing to deploy troops against American citizens in the aftermath of the presidential elections? This Web site reported that possibility a week before voters went to the polls, on October 28, 2008, citing no less than the Army Times and several impeccable, knowledgeable, local sources possessing specific information about preparations at Camp Roberts.
 

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Posted: Friday, March 6, 2009 12:19 pm - 15 opinions posted
Hertel and Fowler caught up in yet another scandal

By THE EDITORS

      Securities and Exchange Commission investigators are probing California Assemblywoman Diane Harkey (R-Orange County), her husband Dan, and his hard-money lending company, Point Center Financial, regarding the Harkey’s  relationship with R.W. Hertel and Sons.

      The investigation is said to focus on Dan Harkey’s dealings with R.W Hertel and Sons, a company owned by Ronald Hertel and Robert Fowler, and the Burnett Development Company. Both companies donated to Diane Harkey’s campaign before receiving loans from Point Center. Each defaulted on their loans, which were subsequently found to have been massively overvalued. Thousands of investors have been left holding the bag and some are accusing Harkey of perpetrating a Ponzi scheme.
 

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Posted: Thursday, March 5, 2009 6:43 pm - 17 opinions posted
California Valley board member lost and found

By KAREN VELIE

      A director of the California Valley Community Service District (CVCSD) Director who has been absent for five months was officially listed as a missing person Sunday by the San Luis Obispo County Sheriff’s Department. Sal Guide surfaced 48 hours later.

      Locals claimed the woman had not been seen in the area nor reported for board meetings since October. The case was closed yesterday following a call from the elusive board member.
 

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Posted: Wednesday, March 4, 2009 12:52 pm - 15 opinions posted
Paso water rate boost appears headed to voters
Paso water rate boost appears headed to voters
Meg Willamson of the city of Paso Robles accepts box of water rate petitions from John Borst, right, of water fee opponent CCPR.
Paso water rate boost appears headed to voters


By DANIEL BLACKBURN

       Paso Robles city officials’ hopes for carefree financing of future water supplies may have gone down the drain Tuesday, and proponents of an elevated water tax now face a precarious ballot challenge.

       Representatives of a citizens group presented Assistant City Manager Meg Williamson with a box containing what they said were the signatures of more than 2,100 Paso Robles registered voters. The petitioners are asking Paso Robles City Council members to rescind their January action in which they approved higher water fees for property owners. If that doesn’t happen, members of Concerned Citizens for Paso Robles (CCPR) want voters to have final say over the future of their water costs.

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Posted: Tuesday, March 3, 2009 8:18 pm - 6 opinions posted
Living large on Atascadero taxpayers' dime

By KAREN VELIE

      After proclaiming a looming fiscal crisis and predicting municipal worker layoffs, Atascadero City Manager Wade McKinney and city taxpayers treated a group of upper level employees to a three-day excursion at an upscale Carmel Valley resort.

      But before heading north, McKinney offered city employees a voluntary resignation program: they could receive 30 percent of their pay for vacating their positions; take partial retirement or voluntary furloughs; or accept a reduction in work hours.

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Posted: Monday, March 2, 2009 10:40 am - 53 opinions posted
Erstwhile Trib publisher Visci new Cal Poly veep
Erstwhile Trib publisher Visci new Cal Poly veep
Chip Visci, 55, former Tribune publisher, will take a communications post at Cal Poly.
Erstwhile Trib publisher Visci new Cal Poly veep

By THE EDITORS

       Former Tribune publisher Chip Visci becomes an early beneficiary of a passed state budget by bagging a job at Cal Poly as associate vice president for strategic communications.

       Visci, 55, worked as a reporter and editor and Knight Ridder executive before he joined the local daily in 2004 and retired in September 2008. He remained in the county, telling friends at the time he wanted to get active in civic affairs.

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Posted: Friday, February 27, 2009 5:57 pm - 16 opinions posted
Weyrich belly up, money woes widening


By KAREN VELIE

       In yet another sign of mounting unpaid debts for Paso Robles businessman David Weyrich and his wife, Mary Weyrich, a local lender filed a lawsuit Tuesday alleging that the Weyrichs failed to pay back a more than $1 million loan. 

       “Unfortunately, The Weyrichs owe me and my partner, Jim Smith, over $1.6 million in different promissory notes,” said San Luis Obispo businessman Cliff Branch. “To date, the Weyrichs have not paid us back a penny. David and Mary gave us their personal guarantee, but apparently that does not count for much.”

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Posted: Thursday, February 26, 2009 7:46 pm - 62 opinions posted
UPDATE: Dancing Star whistleblower shown the gate
UPDATE: Dancing Star whistleblower shown the gate
Jason Hamaker talked about practices by his employer, Dancing Star Foundation's animal sanctuary in Cayucos, and he was fired.
UPDATE: Dancing Star whistleblower shown the gate

By KAREN VELIE

       Dancing Star Foundation has fired a fulltime employee considered a whistleblower by supporters because of his actions in bringing to light the killing of healthy animals at the Cayucos animal sanctuary.

       Earlier today, sanctuary foreman Jerry Smith ordered maintenance supervisor Jason Hamaker to vacate the ranch home he occupies within 24 hours, and fired the outspoken employee.

 

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Posted: Wednesday, February 25, 2009 2:02 pm - 103 opinions posted
Money problems driving sanctuary kills
Money problems driving sanctuary kills
Sue Stiles, with two of her four-legged friends, left a multi-million-dollar trust to continue her sanctuary work for aged animals.
Money problems driving sanctuary kills


By KAREN VELIE

       Many healthy animals entrusted to Dancing Star Foundation’s Cayucos sanctuary have been euthanized in recent months after being placed on a “kill list” -- prepared with the help of a veterinarian and weighted heavily by economic considerations.

       A top sanctuary employee who witnessed the process is speaking on the record and has provided documents to CalCoastNews including death certificates, medical records, and the actual list of animals slated for the needle. The facility is endowed with $43 million in assets to care for aged and infirm farm animals.

Click on the following link to watch a video, shot by a current sanctuary employee, of a day of killing at Dancing Star animal sanctuary.
www.calcoastnews.com/news.php

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Posted: Tuesday, February 24, 2009 5:06 pm - 25 opinions posted
Selective code enforcement: Is it ‘God’s will?’
Selective code enforcement: Is it ‘God’s will?’
This dormitory residence at Roandoak of God hasn't been permitted by San Luis Obispo County since it was built 37 years ago. -- Photo from Roandoak Web site.
Selective code enforcement: Is it ‘God’s will?’

First in a series

By DANIEL BLACKBURN

       Dan De Vaul, meet The Apostle.

       While county officials pursue a vigorous (some say pernicious) criminal prosecution against high-profile De Vaul and his South County Sunny Acres Ranch for the hapless, another, longer-running code enforcement drama is being played out 20 miles northwest at a commune called Roandoak of God.

       Roandoak, however, has three allies that De Vaul lacks -- the county, The Apostle, and, apparently, the Lord.

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Posted: Tuesday, February 24, 2009 12:52 am - 19 opinions posted
UPDATE: They shoot horses, don’t they? Maybe not
UPDATE: They shoot horses, don’t they? Maybe not
Three horses killed by the needle at the Dancing Star Sanctuary.
UPDATE: They shoot horses, don’t they? Maybe not
 
By KAREN VELIE and DANIEL BLACKBURN

       A temporary halt in the random killing of animals at Cayucos’ Dancing Star Sanctuary has been declared by officials of the Los Angeles-based foundation that administers the facility.

(Click on the following link to watch a video, shot by a current sanctuary employee, of a day of killing at Dancing Star animal sanctuary.)  www.calcoastnews.com/news.php

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Posted: Friday, February 20, 2009 10:34 pm - 51 opinions posted
CalCoastNews.com works hard for you

       We could spend a lot of space telling you how CalCoastNews.com breaks stories of local importance, day after day, week after week. But you already know that.

       We could list all the reasons why San Luis Obispo County needs the vigilant oversight of the best investigative reporting team on the Central Coast. But you know those reasons already.

       What you might not know is that this news Web site survives by the narrowest of margins with the help of a few stubborn contributors and a few bold advertisers. Help us keep the fire to the feet of this county’s news media. Help keep good journalism alive. Let us show you how advertising on this site makes good money sense. Or, you may prefer to contribute. Either way, the buttons at the top of this page will guide the way.

       Thanks for helping make CalCoastNews.com the most widely-read news Web site on the Central Coast. -- THE EDITORS

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Posted: Thursday, February 19, 2009 5:09 pm - 10 opinions posted
Verbal swords still crossing in Atascadero

By KAREN VELIE

      In Atascadero, change means more of the same when it comes to contentious city council sessions, with councilmember Tom O’Malley and cohort councilmember Jerry Clay demonstrating they have enduring memories.

      O’Malley’s barrage of accusations aimed at Mayor Ellen Beraud during last month’s “strategic planning” meeting caused her to walk out of the meeting. O’Malley had brusquely contended that Beraud “misrepresented” the council and had secret correspondence with Wal-Mart officials.

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Posted: Thursday, February 19, 2009 3:43 pm - 66 opinions posted
Sanctuary becomes killing field for “protected” animals
Sanctuary becomes killing field for “protected” animals
Veri, a retired brood mare from Varian Arabian Farms in San Luis Obispo, lies dead after feeling the needle.
Sanctuary becomes killing field for “protected” animals

By KAREN VELIE

      A husband and wife team of internationally known environmentalists, paid handsomely to oversee a San Luis Obispo County sanctuary for infirm animals, has ordered the accelerating slaughter of many of their wards.

      Former and present employees of the Dancing Star Foundation claim that its top officers, Michael Tobias and Jane Gray Morrison, intend to focus on endangered animals. They say the pair has commenced the systematic elimination of aged and infirm farm animals under the foundation’s care, contrary to the foundation's purpose.

      Tobias and Morrison have reportedly told employees that economic issues prompted the kill policy.

(Click on the following link to watch a video, shot by a current sanctuary employee, of a day of killing at Dancing Star animal sanctuary.)
www.calcoastnews.com/news.php

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Posted: Tuesday, February 17, 2009 10:34 am - 72 opinions posted
What’s changing for medical pot under Obama?
What’s changing for medical pot under Obama?
San Luis Obispo County law enforcement is tough on medical marijuana patients.
What’s changing for medical pot under Obama?

By DANIEL BLACKBURN

       Signs abound that federal interest in medicinal marijuana use may be diminishing under the Barack Obama Administration.

       There’s also no indication that such a relaxation in enforcement by U.S. drug authorities would impact San Luis Obispo County much. Or make much of a difference in the eventual outcome of the case of Charles Lynch, the Morro Bay pot dispensary owner convicted under federal law of distribution and now facing federal prison.

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Posted: Friday, February 13, 2009 2:35 pm - 14 opinions posted
Gearhart files bankruptcy

By KAREN VELIE

       Kelly Gearhart, a North County developer with ties to hard money lender Hurst Financial, has filed for Chapter 7 bankruptcy protection in Ohio.

       Gearhart and his wife, Tamara Lowe, filed the bankruptcy petition on Wednesday, stating $6.5 million in estimated assets and $45.1 million in estimated debts.

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Posted: Thursday, February 12, 2009 4:41 pm - 19 opinions posted
Deputies seeking sheriffs’ union split

By KAREN VELIE

      Members of the county’s largest and most influential union have mounted an aggressive campaign to divide the Deputies Sheriff’s Association (DSA) into two separate unions.

      If the action is successful, one union would be comprised of sworn peace officers, the other of non-sworn sheriff personnel.

      A break would damage the effectiveness of the association, said DSA President Dale Strobridge. “The most effective way to represent the community is to have a blended agency. We are the most politically effective county organization.”

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Posted: Tuesday, February 10, 2009 11:31 pm - 23 opinions posted
Developer blames downturn in the market
 
      Robert Fowler forgot to pay some taxes on his 100 acre property near the Santa Margarita Ranch development. In 2005, at the top of the market, Fowler failed to pay $619,000 in taxes and penalties. While Tom Daschle threw his accountant under the bus, Fowler blamed a downturn in the market.
Read more at Pacific Coast Business Times.
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Posted: Saturday, February 7, 2009 8:14 pm - 11 opinions posted
EFI victims question attorney’s actions

By KAREN VELIE and DANIEL BLACKBURN

        An attorney with a prominent San Luis Obispo law firm who injected himself into the ongoing hard money lending scandal has assembled a group of investor clients with apparently competing interests.
       
        Roger Frederickson of the Sinsheimer Juhnke Lebens & McIvor (SJL&M) firm was retained in March 2008 by nine investors who lost money in the collapse of Estate Financial Inc. (EFI). Frederickson was to probe aspects of the lenders’ allegedly fraudulent activities and practices.
 
        At least two of the clients asked Frederickson to examine Heritage Oaks Bank as a possible third party and determine if bank officials had a too-cozy relationship with EFI, or failed to sufficiently scrutinize the hard money lender for any appearance of fraud.
 
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Posted: Wednesday, February 4, 2009 1:47 pm - 32 opinions posted
No buts about it: Inmate cell phone use up
No buts about it: Inmate cell phone use up
Cell phones find their way into inmates' hands -- and elsewhere -- through a variety of subtle means, like these cereal boxes. - Photo courtesy California Department of Corrections
No buts about it: Inmate cell phone use up

By DANIEL BLACKBURN
        In agony from abdominal cramps, the California Men’s Colony (CMC) inmate was bent over groaning when correctional officers discovered him, and though initially reticent, the man finally confessed to smuggling. He had a contraband cell phone and its charging unit in his rectum.
        Surgery was required, but that kind of solution won’t help state officials now wrestling with an exploding surge in cell phone possession by inmates of California’s state prisons. Last year alone, more than 2,800 cell phones were confiscated from inmates in the system, recipients of ever more clever methods developed to bootleg the devices into the hands of felons. One favored technique uses cereal boxes headed for prison commissaries for concealment.
        The problem has become so pervasive that a “Wardens’ Advisory Group” has been formed by the California Department of Corrections (CDC) in an attempt to stay current with evolving high technology, and rapidly-adapting low-tech smuggling.
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Posted: Saturday, January 31, 2009 1:01 pm - 16 opinions posted
Guth, Yaguda still stewing; more arrests hinted

By KAREN VELIE

      Prosecutors and defense attorneys today asked a judge to postpone arraignment and bail hearing for Estate Financial Inc. principles Karen Guth and Joshua Yaguda for the fourth time. San Luis Obispo Superior Court Judge Charles Crawford agreed to continue the arraignment of Estate Financial Inc.principles on 26 felony charges to February 20.
 
      Then Deputy District Attorney Steve von Dohlen alluded to the possibility of additional charges being made against the EFI pair, as well as the prospect of additional parties being arrested.

      Attorneys on both sides requested more time to put their cases together and to find out which allegations they agree on and which charges they plan to “fight over.”

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Posted: Friday, January 30, 2009 7:12 pm - 21 opinions posted
EFI investor prospects dismal

By KAREN VELIE and DANIEL BLACKBURN

       Investors in both the Estate Financial Mortgage Fund (EFMF) and Estate Financial Inc (EFI) received gloomy reports from trustees regarding recouping investments through the bankruptcy court. The bad news was contained in a letter sent to investors earlier this month.

       EFMF investors appear to be in the least likely position to recoup investments, despite assurances from EFI boss Karen Guth to investors that their money was more secure in the mortgage fund. Guth was successful at getting her supporters to cash out of investments secured by first trust deeds in exchange for membership in her unsecured mortgage fund.
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Posted: Wednesday, January 28, 2009 6:25 pm - 27 opinions posted
Length of deputies’ visit to sheriff differs

By DANIEL BLACKBURN and KAREN VELIE

      How long did sheriff’s deputies spend at the home of Sheriff Pat Hedges and his wife, Sandy Oneal-Hedges, following a reported domestic disturbance? Official reports vary from more than an hour, to just 15 minutes, depending on who provided the information, and when it was divulged.

      San Luis Obispo County sheriff’s deputies responded January 19 to a domestic disturbance call at the North County home of Hedges and Oneal-Hedges.

      According to sheriff officials, Oneal-Hedges called 911 at 5:36 p.m. to report her husband was screaming at her and asked for assistance. A sergeant and a beat car deputy responded to the house and cleared the incident without creating a report  

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Posted: Tuesday, January 27, 2009 10:16 pm - 12 opinions posted
Home prices continue to tumble
Home prices continue to tumble
This is not a good time to try selling a house in SLO County.
Home prices continue to tumble

By KAREN VELIE

       Combinations of short sales and foreclosures due to unaffordable mortgage payments, as well as hard money lending schemes, are propelling an incredibly rapid deceleration of San Luis Obispo County home prices.

       Throughout the area, homes are selling for as little as 50 percent of what they sold for a few years ago. An end to the slide appears far off.

       For example, a home on Sheridan Road in Arroyo Grande sold for $849,000 in May 2005. Today it is on the market for $449,000. Last summer, a home buyer purchased a home on Adina Way in Nipomo for $227,250. The same home sold for $448,000 in September of 2005.

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Posted: Monday, January 26, 2009 12:32 pm - 24 opinions posted
War of the Hedges

By KAREN VELIE
       San Luis Obispo County Sheriff deputies responded Monday to a domestic disturbance call at the North County home of Sheriff Pat Hedges and his wife, Sandy Oneal-Hedges, according to the sheriff’s log.

       Sandy Oneal-Hedges called 911 at 5:36 p.m. to report her husband was screaming at her and asked for assistance, said Undersheriff Steve Bolts.

      “A sergeant and a beat car went out to the house and cleared it without a report,” Bolts added. “Deputies determine if there is a violation of the law.”

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Posted: Wednesday, January 21, 2009 6:54 pm - 31 opinions posted
The day this news site’s world stood still
The day this news site’s world stood still
The hammer nearly fell on this site's reporting.
The day this news site’s world stood still

By THE EDITORS
          On a warm afternoon last August, this news site nearly died. It is only because of a considerable confluence of coincidental events, and perhaps some kind of divine intervention, that we are here today to report the events that almost assigned us to history. 
          UncoveredSLO.com, this site’s predecessor, was just six months old, but already our reporting was irritating some of the county’s most sacred cows. Our work was exposing for the first time the interlaced and problematic relationships between money lenders, developers, and others who then enjoyed favorable reputations, and who were operating without scrutiny. We were hearing threats from bankers. We were receiving vitriolic and anonymous e-mails and postings on the site. And we were getting menacing missives from lawyers. In a word, UncoveredSLO was then, as now, controversial.
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Posted: Wednesday, January 21, 2009 6:21 pm - 22 opinions posted
Heritage Oaks Bank files big foreclosures


By KAREN VELIE and DANIEL BLACKBURN

       Heritage Oaks Bank has filed foreclosure notices against developer Kelly Gearhart’s Vista Del Hombre project, as well as Karen Guth and Joshua Yaguda’s Pasolivio Olive Ranch.

      Bank officials did so despite a state move on all Guth-Yaguda assets. Following the Oct. 16 arrest of the mother-son team, state officials filed a lis pendens on all properties owned by either suspect. (That’s a formal notice of pending action on a real property claim.)

      The petition “seeks to preserve from transfer conveyance or encumbrance real property or any interest in real property which the people of the state of California believes belongs to or is in control of either defendant (Guth or Yaguda)…,” according to court records.

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Posted: Saturday, January 17, 2009 12:33 pm - 9 opinions posted
ESTATE FINANCIAL UPDATE: Conflicts of interest?
ESTATE FINANCIAL UPDATE: Conflicts of interest?
Cattle are becoming major players in bankruptcy proceedings for hard money lender EFI.
ESTATE FINANCIAL UPDATE: Conflicts of interest?

By KAREN VELIE

      Several key players in a hard money lender’s federal bankruptcy proceedings have apparent conflicts of interest, a situation which may further complicate investors’ efforts to recover hundreds of millions of dollars in lost assets.

      Trustees appointed by the Santa Barbara bankruptcy court are trying to sort out the convoluted financial dealings of Estate Financial Inc. (EFI) and EFI Mortgage Fund of Paso Robles with the assistance of an investor committee chaired by John Lacey. Roger Frederickson, of the San Luis Obispo law firm of Sinsheimer Juhnke Lebens & McIvor, LLP, and Santa Barbara attorney Peter Susi represent Centennial Livestock LLC, according to court records.

      John Lacey is a principal owner of Centennial Livestock LLC and the single largest investor in EFI with more than $3 million placed in EFI’s Mortgage Fund.

      Yet Lacey and his livestock LLC’s attorneys, Frederickson and Susi, apparently did not disclose that John’s wife, Dee Lacey, sits on the board of directors of Heritage Oaks Bank, which reportedly lent EFI president Karen Guth $5 million, originally unsecured. A county prosecutor has suggested Heritage Oaks Bank may have “dirty hands” regarding its financial dealings with EFI principles.

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Posted: Sunday, January 11, 2009 11:29 pm - 59 opinions posted
BULLETIN: $8 million claim hits Paso water plans

       A group of North County residents has filed a claim against the city of Paso Robles to recover $8 million in water and sewer fees they say has been improperly levied against property owners and ratepayers for the past six years.
       John Borst of Concerned Citizens of Paso Robles (CCPR) said the claim was filed earlier this month for “damages as a result of violations of [state constitutional amendment] Prop. 218.” Four of its members retained the Manhattan Beach law firm of Huskinson, Brown, Heidenreich and Carlin, which specializes in taxpayer refunds and class action lawsuits. Such a claim, almost always denied by city lawmakers, is a precursor to a lawsuit. Paso Robles officials have 45 days to respond.
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Posted: Friday, January 9, 2009 3:57 pm - 6 opinions posted
Another county man faces investment charges

By DANIEL BLACKBURN

               A Los Osos man is in county jail tonight following his arrest on eight felony charges related to a Nevada-based investment company he owns.
                Leonard Adolph Delk, 80, becomes the latest in a string of Central Coast money managers to run afoul of the law. He faces accusations of grand theft by embezzlement, offering securities without a license and with false statements. Sources said the amount of money involved will exceed $3 million.
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Posted: Wednesday, January 7, 2009 9:50 pm - 15 opinions posted
PERILS OF PASO: Grand theft auto?
PERILS OF PASO: Grand theft auto?
Obscure, hard-to-see, roped to trees or poles, no-park signs in Paso Robles are a source of riches for city and tow companies.
PERILS OF PASO: Grand theft auto?

FIRST IN A SERIES

By KAREN VELIE and DANIEL BLACKBURN

       A steady drumbeat of complaints target alleged predatory towing practices by the Paso Robles Police Department and two towing companies, Alliance and Pete Johnson.

       Law enforcement, city officials, and reporters have been informed by residents, tourists and shoppers about an explosion of non-consensual tows; inadequately displayed signage, particularly during special events; overly aggressive tow truck drivers; and possible financial motivation on the part of the city and the tow companies.

      The actions appear to violate both state law and the city’s own ordinance pertaining to towing and impounding of vehicles.

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Posted: Sunday, January 4, 2009 10:56 pm - 22 opinions posted
Agency fee assessments shaped by new law
Agency fee assessments shaped by new law
A bigger and better spillway at Nacimiento Dam will help provide water for any future uses like the Nacimiento Pipleline.
Agency fee assessments shaped by new law

By DANIEL BLACKBURN
        A new state law rigidly defining a public agencies’ ability to blithely pass along inflationary costs to residents is now in place, and its impact on San Luis Obispo County may be swift.
        The law, signed by the governor in late September, took effect January 1. It clarifies provisions of the California Constitution regarding assessment of fees charged by local agencies providing water, sewer, or refuse collection, and trims government’s ability to increase fees.
        First in line to deal with conditions of AB3030 (Brownley) are Paso Robles officials, now planning a January 20 public hearing to establish new – and three times higher – water rates to finance the city’s share of the Nacimiento Pipeline.
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Posted: Saturday, January 3, 2009 5:52 pm - 3 opinions posted
Big-money frauds top our 2008 investigations
Big-money frauds top our 2008 investigations
Karen Guth and son Josh Yaguda in happier days.
Big-money frauds top our 2008 investigations

By THE EDITORS
 
        A scandalous stack of brazen fiscal rip-offs and obscene financial schemes that today imperil the very economic stability of San Luis Obispo County is the most important news story of 2008 – and readers learned of them first through a string of investigative reports on this site beginning
March 14
.
 
        In a groundbreaking article headlined “Hard money lending schemes creating fiscal chaos, devastating SLO county investors,” we reported that “a number of SLO County investment firms have allegedly participated in schemes that may already have cost local investors more than $500 million, setting the stage for a colossal collapse unrivaled in this state’s history.”
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Posted: Wednesday, December 31, 2008 1:49 am - 24 opinions posted
DUMPSTER CHRONICLES: Web of deceit
DUMPSTER CHRONICLES: Web of deceit
 
       (EDITORS‘ NOTE: For months, a concerned investor sifted through Hurst Financial Inc.’s trash, tirelessly collecting eight bags of “Post-it” notes, hand-written letters, and typed documents from the imploding lending company. The investor then shared that trash with us. Part I of the Dumpster Chronicles reveals how Hurst Financial Inc. principals knowingly defrauded investors. Part II explains how district attorney’s officials only grudgingly investigated the lender.)  

By KAREN VELIE and DANIEL BLACKBURN
 
 PART THREE
 
       Investors and creditors who have lost millions of dollars to local hard money lenders may find financial reprieve through a plethora of entities with dirty hands.
 
       Sources contend those entities were either culpable in assisting the allegedly fraudulent lenders, or failed in performing a fiduciary duty to report suspected fraud. And as a result, many traumatized Central Coast investors might eventually recover more of their investment than originally believed.
 Read More ...
Posted: Monday, December 22, 2008 5:15 pm - 50 opinions posted
Cal Poly Saudi deal: Dueling contracts

By KAREN VELIE and DANIEL BLACKBURN
 
       Deal-making with the Saudis is proving plenty problematic for Cal Poly officials.
 
       Efforts to ink what has become a contentious and controversial plan linking the CPSU Engineering College with Jubial University College (JUC) hit another snag recently when attorneys for the Saudi Arabian institution rejected Cal Poly’s latest proposal.
 Read More ...
Posted: Wednesday, December 17, 2008 11:20 pm - 9 opinions posted
The Roadrunner wrestles with graft

       It's not every day that this little county gets compared to that giant of the Midwest, Chicago, but when it comes to corruption, we're right in there, says The Roadrunner. But, in a very peculiar way. Check it out at your right. -- THE EDITORS

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Posted: Friday, December 12, 2008 5:56 pm
Evidence keepers scrutinized by Grand Jury

By DANIEL BLACKBURN and KAREN VELIE

      A San Luis Obispo County Grand Jury is probing allegations of sloppy evidence protection by law enforcement and reviewing procedures currently being used by the Sheriff’s Department to protect evidentiary integrity.

      Sources with detailed knowledge of the Grand Jury’s investigation said the panel is examining specific systems of storage to determine if evidence slated for use in court proceedings is properly protected, and that the “chain of custody” -- a demonstrable sequence of possession -- is constantly maintained.


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Posted: Thursday, December 11, 2008 12:35 am - 15 opinions posted
Santa Margarita Ranch property on auction block

By KAREN VELIE

      A thousand-acre parcel of the controversial Santa Margarita Ranch, owned by developer Ronald Hertel, is in default and will be sold at auction December 30.

      Also on the block, this one slated for December 22, is a Pismo Beach Hertel development project; both will be offered at sales to be conducted near the entrance of the San Luis Obispo County Courthouse.

      The properties being sold are at the center of numerous multi-million-dollar default judgments against Hertel in favor of commercial lenders. Transamerica Financial Life Insurance Co. is foreclosing on Hertel for failure to make payments on a $7.6 million loan on a parcel located on the Santa Margarita Ranch.

 Read More ...
Posted: Monday, December 8, 2008 11:52 pm - 39 opinions posted
Bank dubbed co-conspirator
Bank dubbed co-conspirator

By KAREN VELIE and DANIEL BLACKBURN

      Estate Financial Inc. (EFI) creditor Ron Cooper said he plans to identify Heritage Oaks Bank as a co-conspirator with EFI principals Karen Guth and Joshua Yaguda in a lawsuit to be filed later this month.

      Heritage Oaks Bank allegedly lent Guth approximately $20 million in unsecured loans. Following reports by this Web site that EFI was in serious financial distress, HOB placed liens on Guth and Yaguda’s Pasolivio ranch, their service stations, and a commercial property on Ninth Street in Paso Robles that once housed the failed lender
.

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Posted: Friday, December 5, 2008 12:06 am - 16 opinions posted
Atascadero manager admits falsehoods
Atascadero manager admits falsehoods
Mayor Mike Brennler, who after much effort obtained documents showing that city officials lied to the public.
Atascadero manager admits falsehoods


By KAREN VELIE

      Atascadero city officials lied in public statements regarding an eminent domain controversy and made a scapegoat of a city employee.

      City Manager Wade McKinney, one of those officials, confessed the deception only when testifying under oath in depositions earlier this year.

 Read More ...
Posted: Tuesday, December 2, 2008 10:32 am - 81 opinions posted
Housemate cops cruising to cash in
Housemate cops cruising to cash in

By KAREN VELIE

       Atascadero City Manager Wade McKinney probably isn’t feeling very gay this holiday season after getting some straight talk about a looming and large payout of taxpayer money to settle a police department dispute.

       McKinney, who heads SLO county’s most litigious city, learned recently that a mediator’s decision that favors Police. Lt. Carole Robinson will cost the city heftily, according to well-placed city sources.

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Posted: Saturday, November 29, 2008 6:47 pm - 12 opinions posted
Estate Financial attorneys blame market downturn

By KAREN VELIE
 
      Following a fourth bail hearing and arraignment continuation, Joshua Yaguda’s attorney pointed at the downturn in the market as the catalyst for the financial ruin of Estate Financial inc. (EFI), on Monday morning.
 
      “The market shifted and changed,” Yaguda’s attorney Dyke Huish said. “That’s what happened here. They made people lots of money on the upside.”

 Read More ...
Posted: Monday, November 24, 2008 8:59 pm - 17 opinions posted
Hospitals battle over market share

By KAREN VELIE

      Care of San Luis Obispo County trauma patients takes a back seat while local physicians and hospital officials battle over lucrative patient dollars.

      French Hospital Medical Center and Sierra Vista Regional Medical Center continue to scuffle over whether either hospital will receive a specialty care system designation of trauma and/or ST-Segment Elevation Myocardial Infarction (STEMI).

      While French Hospital CEO Alan Iftiniuk and Arroyo Grande Hospital CEO Rick Castro asked SLO County Emergency Medical Services Agency (SLOEMSA) and county Health Agency Director Jeff Hamm to proceed cautiously in designating a trauma system, officials from both hospitals have asked SLOEMSA to fast track a French Hospital STEMI designation.

 Read More ...
Posted: Sunday, November 23, 2008 12:05 pm - 6 opinions posted
DRUNK, BROKE: DUI rehab techniques questioned
PART TWO: Offending the offenders
By DANIEL BLACKBURN
        If you’re one of the thousands of people arrested this year and charged with driving while intoxicated in San Luis Obispo County, be encouraged by the knowledge that the entire judicial system and a parade of state and county agencies and officials share a keen interest in your rehabilitation.
        But pay close attention during the mandatory treatment classes that you likely will be attending, or you and your wallet might get slapped. Some classroom attendees allege that a longtime counselor, or “specialist,” in the county’s Drug and Alcohol Services’ DUI program uses education techniques that often become physical. Several class members interviewed for this article said they share a concern that quality and effectiveness of the educational program is being diminished.  
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Posted: Friday, November 21, 2008 12:43 pm - 7 opinions posted
The Roadrunner goes deep to define despotism

       What’s the link between an infamous tyrant, a local business association, and a web of political chicanery? Find out in the latest column by The Roadrunner, “Observations on the Passage of Time, Alcohol, and the Pursuit of Truthiness.” You’ll find it at your right. -- THE EDITORS

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Posted: Wednesday, November 19, 2008 7:42 pm
News moves slowly, Nacimiento gas leak does not
News moves slowly, Nacimiento gas leak does not
No fuel leaked into Lake Nacimiento following Nov. 9 spill, say officials.
News moves slowly, Nacimiento gas leak does not

By DANIEL BLACKBURN

       A gasoline leak in Lake Nacimiento marina supply lines spilled an undetermined amount of fuel near lake waters earlier this month before the problem was noticed by park employees.

       Following three days of queries by CalCoastNews reporters, Nacimiento Park Manager Tom Shepherd said he was issuing a press release, which he did on Tuesday, to claim, “No fuel was spilled into the lake” in the Nov. 9 incident. He added, “The exact amount of the spill is unknown but is believed to be less than 350 gallons.” The fuel is stored in a 12,000-gallon tank, according to sources who suggested the amount of leaked fuel was much more significant.

 Read More ...
Posted: Tuesday, November 18, 2008 3:30 pm - 5 opinions posted
DRUNK, BROKE: DUI program preps for big growth spurt
DRUNK, BROKE: DUI program preps for big growth spurt
There's always room for one more in county DUI program.
DRUNK, BROKE: DUI program preps for big growth spurt

By DANIEL BLACKBURN
PART ONE: Gold in the pockets of boozing drivers
        While law enforcement prepares the handcuffs, officials are predicting arrests in this county for driving under the influence of drugs or alcohol will set new records this holiday season.
And as a direct consequence, local health professionals will see double-digit percentage increases in revenue wrested from imbibing vehicle operators.
        Even one for the road can leave a costly aftertaste these days.
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Posted: Saturday, November 15, 2008 3:40 pm - 62 opinions posted
Atascadero male police officers claim discrimination
Atascadero male police officers claim discrimination

By KAREN VELIE

       A contentious reverse discrimination claim that has embroiled the Atascadero Police Department in controversy heads for mediation Tuesday.

       Earlier this year, city officials launched an internal probe into complaints of reverse discrimination made by male officers against female officers in the city's police department. The complaints allege preferential treatment for an alleged lesbian officer, provided by an upper level officer with whom she was romantically involved, sources said.

 Read More ...
Posted: Sunday, November 9, 2008 10:49 pm - 69 opinions posted
Former EFI employee: ’We all knew it was fraud’ | Estate Financial,
Former EFI employee: ’We all knew it was fraud’ | Estate Financial,
Estate Financial's headquarters on 9th Street in Paso Robles was built with investor money.
Former EFI employee: ’We all knew it was fraud’

By KAREN VELIE and DANIEL BLACKBURN

       Three former employees of defunct Estate Financial Inc. (EFI) claim they witnessed fraudulent behavior while employed at the Paso Robles hard money lending firm.

       Speaking to CalCoastNews on condition of anonymity, the individuals provided new details of working conditions and financial practices of their ex-employers, Karen Guth and her son, Joshua Yaguda. Each of the former office workers expressed concern about becoming involved in the continuing investigation into EFI’s collapse.

 Read More ...
Posted: Friday, November 7, 2008 6:53 pm - 17 opinions posted
Hearing voices on the SLO scene

By THE EDITORS

       Our newest columnist, The Roadrunner, commences today, with a jaundiced look at officialdom’s never-ending curiosity about reporters’ news sources. The Roadrunner will grouse weekly, or whenever we hear from him… her… it, about issues of Central Coast interest. And The Roadrunner plans to continue to hide under a shroud of anonymity, so as not to risk damaging valuable business, social, and personal contacts. Even The Roadrunner’s paychecks go through a secret double drop site.

       If you want to submit guest commentary and risk rejection, e-mail your completed essay to the editors for consideration, keep it to 500 words, and include contact information.

 Read More ...
Posted: Friday, November 7, 2008 3:42 pm - 9 opinions posted
Bank board links Santa Margarita Ranch developer, supervisor | Santa Margarita,
Bank board links Santa Margarita Ranch developer, supervisor | Santa Margarita,
County Supervisor Katcho Achadjian sits on the board of directors of Santa Lucia National Bank.
Bank board links Santa Margarita Ranch developer, supervisor

By KAREN VELIE
                San Luis Obispo County Supervisor Katcho Achadjian occupies a salaried seat on a local bank’s board of directors along with a key developer in the proposed Santa Margarita Ranch project.
                Achadjian’s vote on plans for the Santa Margarita Ranch could be the determining factor in the project’s future. The supervisor and Douglas Filipponi both sit on the board of Santa Lucia National Bank (SLNB). Filipponi and partners Rob Rossi and Karl Wittstrom are presenting the controversial housing development project to a divided Board of Supervisors for approval, perhaps on Tuesday.
 Read More ...
Posted: Sunday, November 2, 2008 11:03 pm - 15 opinions posted
Reclamator inventor sues water resources establishment | Los Osos, sewer, water,
Reclamator inventor sues water resources establishment | Los Osos, sewer, water,
Tom Murphy demonstrates several elements of his Reclamator invention.
Reclamator inventor sues water resources establishment
 
By DANIEL BLACKBURN
        Tom Murphy is not a patient man, but he is immensely optimistic.
        Murphy scoffed brusquely at questions about whether his sewage-treatment invention, the Reclamator, really works, and suggested the machine’s capability is a foregone conclusion. And he’ll be putting the validity of his claim to the test in court as he takes on the entire governmental water resources infrastructure with an ambitious lawsuit filed Oct. 24 in San Francisco’s U.S. District Court.
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Posted: Friday, October 31, 2008 4:50 pm - 38 opinions posted
Estate Financial chiefs’ arraignments postponed  | Estate Financial,
Estate Financial chiefs’ arraignments postponed  | Estate Financial,
Karen Guth talks to investors while son Josh Yaguda listens, months before their arrests.
Estate Financial chiefs’ arraignments postponed

By THE EDITORS

       San Luis Obispo Superior Court Judge Jac Crawford Monday agreed to continue the arraignment of Estate Financial Inc. principles Karen Guth and her son Joshua Yaguda on 26 felony charges to Nov. 21.

       Irvine-based attorney Dyke Huish requested the delay to allow time to retain and brief a second defense attorney. Crawford also granted Guth and Yaguda access to discovery.

 

 Read More ...
Posted: Monday, October 27, 2008 7:34 pm - 47 opinions posted
Estate Financial investors have chance to claim assets

By KAREN VELIE

       Estate Financial Inc. investors have just 30 days to file any claim to assets belonging to EFI principals Karen Guth and her son Joshua Yaguda, according to a financial notice posted by the San Luis Obispo District Attorney’s Office Oct. 24. "

       “The property and assets subject to the above described proceedings includes all property and assets in the control of Guth and/or Yaguda, or which has been transferred by Guth and/or Yaguda to any third party subsequent to the commission of any criminal act alleged pursuant to Penal Codes section 186.11(a),” the notice reads.

 Read More ...
Posted: Sunday, October 26, 2008 7:47 pm - 10 opinions posted
Is Paso’s water levy lawful?  | Nacimiento Pipeline, water, Paso Robles,
Is Paso’s water levy lawful?  | Nacimiento Pipeline, water, Paso Robles,
Pipes framed by backhoe claws await installation for water project in Paso Robles.
Is Paso’s water levy lawful?

Howard Jarvis alliance says no, no, no

By DANIEL BLACKBURN

       An influential statewide taxpayer group views elements of Paso Robles’ proposed water rate increase as unlawful and unconstitutional, and is “strongly” advising city officials to take a different funding path.

       Findings of the Howard Jarvis Taxpayers Association (HJTA) lend credence to a position advanced by a local group, Concerned Citizens for Paso Robles (CCPR).

 Read More ...
Posted: Friday, October 24, 2008 11:46 am - 12 opinions posted
Lenders accused of fraud agree to surrender licenses

By KAREN VELIE and DANIEL BLACKBURN

       Hurst Financial Inc. president James Hurst Miller Jr. and his daughter Courtney Lee Brard admitted to state regulators their complicity in fraud.

       The pair agreed to forfeit their real estate licenses rather than dispute a large number of fraud allegations filed against them by the California Department of Real Estate (DRE), according to an October 14 order giving the pair 22 days to surrender the licenses.

 Read More ...
Posted: Tuesday, October 21, 2008 10:52 pm - 22 opinions posted
U.S. troops deployed for U.S. election control

By KAREN VELIE and DANIEL BLACKBURN
 
          For the first time in more than a century and in apparent violation of federal law, the U.S. military soon will be policing American streets -- ostensibly to control anticipated post-election disruptions.
 
          Battle-trained infantry troops will be in place and ready to conduct hostilities against American citizens, according to reports in Army Times. Unknown is how many troops will be deployed for what the military has dubbed “Consequence Management Response Team” operations.
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Posted: Monday, October 20, 2008 5:44 pm - 36 opinions posted
 STAKEOUT CONFIDENTIAL: Seeing Guth and Yaguda in handcuffs  | Estate Financial, Arrest,
 STAKEOUT CONFIDENTIAL: Seeing Guth and Yaguda in handcuffs  | Estate Financial, Arrest,
Yet another sign of the times.
STAKEOUT CONFIDENTIAL: Seeing Guth and Yaguda in handcuffs

By THE EDITORS

       Law enforcement plans to grab Estate Financial Inc.’s principals some time Thursday raced through the investor community like rumors of rain during a drought.


       So we knew what was going to happen, we knew who, why, and where. But exactly when? That piece of information was missing.

 Read More ...
Posted: Sunday, October 19, 2008 1:21 pm - 27 opinions posted
CalCoastNews.com needs your help to stay the course

        Do you enjoy reading CalCoastNews.com’s in-depth news and commentary? Do you like the investigative stories that the mainstream media often ignores until there is an arrest made or a press release provided? Now is your chance to make sure this valuable local resource stays strong.


 Read More ...
Posted: Saturday, October 18, 2008 8:56 pm - 13 opinions posted
EFI 's Guth, Yaguda arrested on multiple fraud charges   | Estate Financial, arrest, fraud, paso robles, fbi,
EFI 's Guth, Yaguda arrested on multiple fraud charges   | Estate Financial, arrest, fraud, paso robles, fbi,
Joshua Yaguda of EFI is taken into custody.
EFI 's Guth, Yaguda arrested on multiple fraud charges

By KAREN VELIE and DANIEL BLACKBURN
 
        Beleaguered Estate Financial Inc. (EFI) principals Karen Guth and her son Joshua Yaguda were arrested Thursday morning on 26 felony charges.
       
        A parade of a dozen San Luis Obispo County Sheriff, District Attorney, and state vehicles roared into the Pasolivo Olive grounds at 10:15 a.m. armed with arrest and search warrants.
 
        Before they were handcuffed and taken away, Guth and Yaguda could be seen talking to investigators near a large barn on their property.


 Read More ...
Posted: Thursday, October 16, 2008 1:57 pm - 59 opinions posted
Plans afoot to shutter (finally) Morro Bay’s skyline-busting power plant

By DANIEL BLACKBURN

       Officials at the Morro Bay Power Plant are planning to bring down the curtain on the 54-year-old facility and currently are telling city council members that “continued operation of the plant is unlikely” beyond 2015.

       Plant owner Dynegy’s representative Randy Hickok made the pronouncement in a Sept. 9 letter to the council, a copy of which was obtained by CalCoastNews. Hickok suggested the existing plant could even be shut down within three years, and blamed tough water quality rules proposed by the state for minimizing the prospect of new plant construction. The council will discuss Dynegy’s most recent plans later this month in a session closed to the public.

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Posted: Wednesday, October 15, 2008 2:34 pm - 12 opinions posted
EFI UPDATE: Corporate criminals?

By KAREN VELIE and DANIEL BLACKBURN

        In an attempt to explain the ongoing financial calamity created by Estate Financial Inc. (EFI), trustees recently held a meeting in which they frequently used the “F” word (fraud) and appeared to explain an apparent Ponzi scheme without dropping the “P” word.
 
        EFI is one of at least four San Luis Obispo County hard money lenders that has participated in lending schemes and inappropriate management practices that may have already cost investors more than $500 million and created an environment that could cast a shadow over personal and business finances in this county for decades.
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Posted: Saturday, October 11, 2008 5:44 pm - 10 opinions posted
Flow, baby, flow: Starbucks keeps water faucets wide open | Water,
Flow, baby, flow: Starbucks keeps water faucets wide open

By DANIEL BLACKBURN

       Starbucks calls it “the dipper well system.” You might call it a million and a half gallons of San Luis Obispo County water wasting down the drain each and every month.

       The coffee Goliath’s worldwide policy of keeping water taps open and flowing in stores during business hours -- which company officials consider a “sanitary” practice -- is sharply at odds with California’s worsening 100-year drought. It also is beginning to spark an international outcry.

 Read More ...
Posted: Wednesday, October 8, 2008 12:56 pm - 34 opinions posted
Paso city computer pressed into service to slam citizen

By DANIEL BLACKBURN and KAREN VELIE

       At least one Paso Robles city computer was used to post on this Web site’s blog dozens of derogatory, revealing remarks and private information about a citizen in the aftermath of a recent CalCoastNews commentary on Paso Robles police practices.

       For five days over many hours, a blogger posting under the pseudonym “NoMoreLies” used the tax-supported computer to write critical observations while identifying a local businessman, the subject of a Sept. 24 commentary entitled, “Under Paso Robles’ Wild‘n’Crazy ‘Big Tint.’”

 Read More ...
Posted: Tuesday, October 7, 2008 12:32 pm - 39 opinions posted
A message for the birds: Avoid this no-fly zone  | Atascadero, pigeon,
A message for the birds: Avoid this no-fly zone  | Atascadero, pigeon,
Pro Tip: Don't eat the brown corn.
A message for the birds: Avoid this no-fly zone

By KAREN VELIE

      Pigeons are dropping from the Atascadero skies, bleeding from the eyes and dying after allegedly being drugged by pest control workers retained by owners of Atascadero’s Mission Oaks Shopping Center.

      It might be a scene from Alfred Hitchcock’s classic film “The Birds,” but this time the birds are losing. Dozens of pigeons, apparently ill and flying erratically, have alarmed customers and employees of the shopping center who have witnessed the chemical carnage.

      A reporter Saturday saw a group of about 20 pigeons attempting to navigate from the shopping center rooftop to a nearby Shell service station. One swooped into the back of the establishment and toppled onto the feather-littered parking lot. Nearby, a smaller pigeon shuddered and fell to the ground. With blood dripping from its eyes, the bird convulsed, twisted in pain, and died.


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Posted: Thursday, October 2, 2008 6:28 pm - 32 opinions posted
Sister George’s rules
Sister George’s rules
"Class!!! Don't annoy Sister George."
Sister George’s rules

     We would like to introduce Sister George, a longtime reader who has agreed to help survey comment threads so they don’t get out of hand. As they do.

       For the most part, blogging is an opportunity for readers to quickly react to our stories via a community conversation. The investigative nature of our stories inspires some, angers others, which, of course, is echoed in the dozens of comments that accompany our stories. In fact, in the eight months since the debut of CalCoastNews.com, our commenting community has grown in a way we never could have anticipated.


 Read More ...
Posted: Wednesday, October 1, 2008 9:25 pm - 27 opinions posted
Cal Poly Provost reassigned?

By KAREN VELIE

        Cal Poly President Warren Baker announced that Senior Vice President of Academic Affairs and Provost William Durgin has been reassigned, on Monday. Durgin will now serve as the university’s executive for research and external support.

        “Durgin has provided outstanding leadership of the university and we are grateful for the significant accomplishments made during his tenure as provost,” Baker says in a press release.

        Nevertheless, sources claim Durgin’s “demotion” from second in command has more to do with internal power struggles, issues with the proposed Saudi program, and problems finessing the media.

 Read More ...
Posted: Tuesday, September 30, 2008 8:16 pm - 5 opinions posted
DUMPSTER CHRONICLES: Law, disorder, and the DA

By KAREN VELIE and DANIEL BLACKBURN

PART TWO

       A disengaged and reticent district attorney failed to investigate numerous complaints targeting fraudulent hard money lenders and big-name developers during the past 18 months, even as new and unsuspecting investors were being fleeced of their life savings.

       Personal, political, and family connections may have had significant influence on decisions made by key members of San Luis Obispo County District Attorney Gerald Shea’s office, according to numerous unhappy county residents and a lot of corroborating trash.

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Posted: Saturday, September 27, 2008 4:45 pm - 21 opinions posted
COMMENTARY: Under Paso Robles’ wild’n’crazy “Big Tint”

By DANIEL BLACKBURN and KAREN VELIE

        A businessman seeking equal justice is learning that tinted vehicle windows, tinted law enforcement, and tinted truth has put him squarely in the path of conflict with Paso Robles’ dancing police chief, Lisa Solomon.

         Last week, the Paso Robles businessman was dining at a local eatery when he noticed a police patrol car pausing several times near his parked van. When the man left the scene, Paso Robles Police Officer Kevan Harder immediately pulled him over and cited him for the egregious offense of driving with an overly-tinted window.

 Read More ...
Posted: Wednesday, September 24, 2008 10:56 pm - 71 opinions posted
Former Ralph’s Paso manager indicted for strike actions

By DANIEL BLACKBURN

       Craig Totman, a former manager of Paso Robles’ Ralph’s grocery store, has been indicted by a federal grand jury for allegedly making false statements to investigators probing the 2003-2004 grocers’ strike.

       Totman, 55, was one of eight people named Thursday in the 23-count indictment for allegedly participating in a conspiracy to undermine the labor dispute.

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Posted: Friday, September 19, 2008 6:39 pm - 4 opinions posted
Santa Margarita School principal convicted of DUI
By KAREN VELIE

       Santa Margarita Elementary School Principal Melanie Karp has been sentenced to two days in the county jail and three years probation for driving under the influence of alcohol.

       Commissioner Stephen B. Sefton also levied a fine of $1,726 and ordered the school official to attend alcohol abuse classes after she pled no contest to a drunk-driving charge.


 Read More ...
Posted: Thursday, September 18, 2008 10:10 pm - 74 opinions posted
Hurst records held hostage by family friend
By KAREN VELIE and DANIEL BLACKBURN

        Investors of the failing Atascadero lender Hurst Financial Corp. (HFC) say they are being prevented from collecting their records by a relative of Hurst’s beleaguered president.

        Robert Borba of Stinchfield Financial, another hard money lender, was given possession of the records by James Hurst Miller. Borba is refusing to release any of those records and blaming a state agency for resulting problems.


 Read More ...
Posted: Thursday, September 18, 2008 9:15 pm - 7 opinions posted
Clarification

     A Sept. 16 article erred in reporting that Morro Road LLC owns Tastee Freeze in Atascadero. In fact, the LLC owns only the real property; the restaurant is a lessee not owned by or connected to Kelly Gearhart or any Gearhart company.

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Posted: Thursday, September 18, 2008 12:48 pm - 4 opinions posted
Cal Poly boss Warren Baker to retire? Finally?
By DANIEL BLACKBURN and KAREN VELIE

       While academic associates might consider it an oxymoron, seldom-seen Cal Poly President Warren Baker may retire shortly.

       Baker has been discussing his plans with friends and ironing out financial issues with university officials, according to numerous sources.


 Read More ...
Posted: Wednesday, September 17, 2008 4:07 pm - 16 opinions posted
Market plunge darkens taxpayers' pension obligation
By DANIEL BLACKBURN

        San Luis Obispo County taxpayers are looking down the black hole of a swelling, multi-million-dollar deficit of the county workers’ pension plan that poses a monumental problem with few real solutions, complicated by Monday’s record-breaking 500-point plummet of the Dow.

        The county’s pension investment portfolio is in a very precarious position. Public employee pension promises may be one of the most potentially crippling fiscal disasters facing county taxpayers today, yet this remains an issue shrouded in its own complexities.
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Posted: Tuesday, September 16, 2008 5:28 pm - 23 opinions posted
BULLETIN: Gearhart crashing, burning

By THE EDITORS

       Attorneys for North County developer Kelly Gearhart, the darling of Atascadero city officials, hard-money lenders, and local banks, encountered Judge Charles S. Crandall Tuesday morning.
 
       The San Luis Obispo County Superior Court jurist took position and control from Gearhart on his Morro Road LLC and appointed a limited receiver. The LLC owns Tastee Freeze in Atascadero and numerous unfinished projects, all funded by Hurst Financial Corp. (HFC) investors.
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Posted: Tuesday, September 16, 2008 3:12 pm - 7 opinions posted
Local group trying to buy The Tribune

      A group of county investors, hoping to keep The Tribune locally owned, is making an attempt to purchase the struggling daily from its parent McClatchy Newspapers.

      Both Publisher Chip Visci and McClatchy treasurer Elaine Lintecum declined comment.

      The investment group advocates a focus on the community, said San Luis Obispo attorney James Duenow, who is working to broker a deal with McClatchy officials.


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Posted: Friday, September 12, 2008 9:00 pm - 33 opinions posted
COMMENTARY: Girl chief gone wild?

 By KAREN VELIE and DANIEL BLACKBURN

      Lisa Solomon, chief of the Paso Robles Police Department, just loves to dance.

      But is she dancing with the stars? Or dancing on the bars?

      Dancing is what she does whenever she’s asked if she thinks there is much of a gang problem in her city. It’s what she’s doing in federal bankruptcy court while proclaiming a million dollars of debt.

      And it’s what’s she’s known for far and wide… dancing on the bar at the Paso Robles Inn. There she’d be, strutting her stuff up and down the slab, and if the place was too crowded, well, a table top would do.

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Posted: Thursday, September 11, 2008 2:15 pm - 11 opinions posted
Woman attacked, gang connection alleged

By DANIEL BLACKBURN and KAREN VELIE

        A Paso Robles woman was sexually assaulted shortly after midnight Tuesday in her own front yard by three Hispanic men who shouted racially-charged slurs.

        The woman, in her mid-20s, was attacked from behind as she parked in her driveway on Trigo Lane. She told authorities she was raped with an object, probably a sprinkler head. She said the men called her vile names and referred derogatorily to her race during the violent assault.

        Investigators at the crime scene said “initiations” for membership in a local gang are currently underway, according to friends of the victim’s family.

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Posted: Wednesday, September 10, 2008 12:17 am - 19 opinions posted
DUMPSTER CHRONICLES: Lender Hurst in a can

 FIRST IN A SERIES

By KAREN VELIE and DANIEL BLACKBURN

      Atascadero lender Hurst Financial Corp. (HFC) is fielding accusations of fraud from a second state agency, but the company’s bigger problem might already be in the bag.

      Hurst’s president, James Hurst Miller Jr., and his daughter, HFC employee Courtney Lee Brard, are similarly accused by both the departments of Real Estate and Corporations, and already have had their permits to operate either suspended, revoked or threatened.

      But in the end, eight bags of trash might weigh in more heavily than mere allegations.

 Read More ...
Posted: Tuesday, September 9, 2008 6:32 pm - 12 opinions posted
Commentary: Marijuana and the badge
By STACEY WARD

When the sheriff came to town, backed by countless
federal agents, to bust a legitimate, city-approved business, we could all breathe a
huge sigh of relief.

No more squirrelly riff-raff posing as patients to get their
marijuana fix. No more “medical” marijuana dispensaries in San Luis
Obispo County. No more respect for community-based values and
standards in which local citizens govern themselves.
 Read More ...
Posted: Sunday, September 7, 2008 4:52 pm - 13 opinions posted
EFI trustees: Piggys at the trough?

By KAREN VELIE and DANIEL BLACKBURN  

        Trustees working the Estate Financial Inc. (EFI) collapse – including a pair retained by the failed lender – want nearly a quarter-million dollars for their efforts during the past month and a half.

        That includes $10,400 for two round trips by car from San Francisco to Paso Robles.

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Posted: Friday, September 5, 2008 2:10 pm - 13 opinions posted
National Obama campaign launches from SLO

By DANIEL BLACKBURN and KAREN VELIE

      San Luis Obispo County may play a significant role in the upcoming presidential election.

        This summer, two former California Polytechnic State University students, marketing whiz Cliff Branch and film director David Riordan, conceived and executed a massive national advertising campaign and dubbed it “Play it Forward.”

          Branch and Riordan, political independents, funded the campaign with their own resources, without the knowledge or influence of either political party.


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Posted: Thursday, September 4, 2008 10:48 am - 4 opinions posted
Bigger, better… UncoveredSLO’S new horizons

By THE EDITORS

        UncoveredSLO is expanding. In a world where it’s grow, or go away, we are redesigning our Web site; adding a host of new attractions like the county‘s best activities calendar (currently under construction); and broadening our news coverage in order to provide an even more rewarding and informative reading experience. Under the brand-new banner of CalCoastNews.com, quality investigative reporting by UncoveredSLO -- which tens of thousands of daily readers anticipate and depend on -- will continue to be our primary focus.  That we promise.

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Posted: Thursday, September 4, 2008 10:44 am - 7 opinions posted
Paso’s costly water project just a backdoor tax?
By DANIEL BLACKBURN
                A multi-million-dollar Paso Robles water project funded by fattened water rates has pitted two mayoral candidates against one another and the conflict’s outcome could impact North County development for years to come.
                City officials have decided to saddle water users with sharp rate hikes to pay for the Nacimiento Pipeline water delivery system, which includes a $100 million-plus water treatment plant to deal with the lake water’s high mercury content. A price tag to the pipeline of $76 million is alleged, but debt service and other costs may eventually hike the total project cost to more than $300 million.
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Posted: Sunday, August 31, 2008 12:00 am - 55 opinions posted
OPINION: Pity the children, not the porn fan
By KAREN VELIE
 
          Not a lot shocks me anymore. Even so, I am stunned by the number of blog posters and media reporters who worry that people accused of child porn, once convicted, will be unable to get their lives back on track.

          The facts, however, suggest that a great percentage of these people have been way off track for a long time and stand little chance of ever changing.

          Recent local arrests were preceded by lengthy, intensive investigations, officials said. Former San Luis Obispo Sheriff’s Deputy Bryan Goossens and part-time postman Jeremy Neubauer are battling charges of child pornography following a widespread roundup of suspected members of a child pornography ring. A third county man, Bryan Arnold, will be arraigned September 8.
 Read More ...
Posted: Tuesday, August 26, 2008 12:00 am - 80 opinions posted
Help keep good reporting alive
FROM THE EDITORS:
                There’s no other way to say it… we need our readers’ help to keep UncoveredSLO.com doing the kind of investigative reporting this county so needs.
                Advertise with us and join a select group of bold enterprises sharing our vision of a well-informed electorate. Or contribute, and know that you are helping maintain a watchdog function that helps shine a light on government and business, and reports the news that other local media can’t, or won’t.
                Contact us at ads@uncoveredslo.com or contribute by hitting the yellow button on the top right of this page. Thanks to all who have helped us get here!  
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Posted: Thursday, August 21, 2008 12:00 am - 81 opinions posted
NRC: Diablo explosion was 'catastrophic failure'

By KAREN VELIE

               A senior official of the federal Nuclear Regulatory Commission (NRC) said today “an explosion” which occurred August 18 at Diablo Canyon Nuclear Power Plant was a life-threatening “catastrophic failure.”

               No radioactive leaks were reported, however, at the South County facility.

               “It was an explosion,” Michael Peck, an NRC senior resident inspector, told UncoveredSLO.com. “Had it happened during business hours, someone in the vicinity would have risked injury. The explosion propelled shrapnel into offices.”

               NRC spokesperson Scott Burnell described the explosion as “energetic.”
 Read More ...
Posted: Thursday, August 21, 2008 12:00 am - 192 opinions posted
FBI busts sheriff's deputy Goossens for child porn
By DANIEL BLACKBURN and KAREN VELIE

          San Luis Obispo County Deputy Sheriff Bryan Goossens was arrested Monday by federal agents as part of a widespread roundup of suspected members of a child pornography ring. Two other county men also have been named and face charges.

          Officials said the suspects used the Internet to trade photographs.

          Goossens, who caused a five-car accident in Atascadero in July, was one of more than 50 people in southern and central California whose arrests or indictments are being announced later this morning by a multi-agency task force in Los Angeles. (Additional details will be posted on this site later this morning.)
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Posted: Tuesday, August 19, 2008 12:00 am - 52 opinions posted
UPDATE: Child sex groups horrific practices

A federal agent said today that a like-minded group which included San Luis Obispo County Sheriff’s Deputy Bryan Goossens and 51 others shared “very disturbing and graphic” images of children depicting bestiality and bondage.

Calling the evidence “horrific,” Immigration and Customs Enforcement (ICE) Assistant Special Agent in Charge Jorge Guzman told UncoveredSLO.com that 26 children, aged 2 to 17, have been removed from “dangerous environments” by appropriate family and child services officials.
 Read More ...
Posted: Tuesday, August 19, 2008 12:00 am - 132 opinions posted
AG Brown "clarifies" muddy medical pot law
By DANIEL BLACKBURN
          California’s top prosecutor has dribbled out the maiden set of formal guidelines to help law enforcement interpret and apply medical marijuana laws, and San Luis Obispo County Sheriff Pat Hedges says he has found in them an ounce of redemption.
          Attorney General Edmund G. (Jerry) Brown’s final draft of his long-awaited rules for ensuring “the security and non-diversion of marijuana grown for medical use” is circulating among top state and local law enforcement officials. The new Justice Department guidelines are the first definitive words on the subject by a state attorney general, and are written nearly a dozen years after California voters approved Proposition 215, the “Compassionate Use Act.”
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Posted: Monday, August 18, 2008 12:00 am - 63 opinions posted
Divorce allows peek between EFI's sheets
By DANIEL BLACKBURN and KAREN VELIE
          It took an acrimonious divorce and a protracted asset scrap to finally address the big question for investors in Paso Robles’ Estate Financial Inc.: Where did their money go?
          Now, EFI principal Karen Guth has answered at least part of that question in the midst of her contentious court battle over marital assets with ex-husband and former partner, Charlie Applebaum. By her own admission, Guth utilized hundreds of thousands of dollars in investor money to capitalize her personal holdings.
 Read More ...
Posted: Saturday, August 16, 2008 12:00 am - 111 opinions posted
Protect, Serve And Sell T-Shirts.
By KAREN VELIE and DANIEL BLACKBURN
        A San Luis Obispo police officer peddles custom imprinted T-shirts, sometimes while on duty, as a federal bankruptcy court considers his twin Chapter 7 petitions.
        Officer Christopher Charles Chitty apparently runs the cash business from the home he shares with his wife, Lisa Solomon, Paso Robles’ chief of police.
        Chitty said Sunday that the business, Trick Tape, no longer exists. An investigation by UncoveredSLO.com suggests otherwise.
 Read More ...
Posted: Monday, August 11, 2008 12:00 am - 259 opinions posted
Judge ices EFI fund property sale proceeds
By KAREN VELIE and DANIEL BLACKBURN

        A federal judge presiding over Estate Financial Inc. (EFI) bankruptcy hearings declined Tuesday to authorize disbursement of funds from a pending sale of investment property from the troubled lender’s portfolio.

        U.S. District Court Judge Robin Riblet instead ordered proceeds from the sale placed in a segregated account to allow trustees time to weed through a mountain of documents.
 Read More ...
Posted: Wednesday, August 6, 2008 12:00 am - 154 opinions posted
FBI agents seize deputy sheriffs computer
By KAREN VELIE and DANIEL BLACKBURN

            A San Luis Obispo County sheriff’s deputy is the target of an FBI investigation which has included a search of the deputy’s house and the seizure of his computer.

            Bryan Goossens, a 20-year employee of the sheriff’s department, was placed on paid administrative leave July 11 by Sheriff Pat Hedges.                      
 Read More ...
Posted: Monday, August 4, 2008 12:00 am - 110 opinions posted
Enough already! Dalidio entertaining offer
By KAREN VELIE and DANIEL BLACKBURN

        Ernie Dalidio is abandoning a contentious, 16-year effort to develop his property along Highway 101 south of San Luis Obispo, and is negotiating an extended option agreement with a group of local investors.

        Dalidio declined comment Monday afternoon, but sources told UncoveredSLO.com, “Dalidio has had enough and just wants to get on with his life.”
        A local company, Promenade-Two, has made an unspecified offer to Dalidio, according to reliable sources.
 Read More ...
Posted: Monday, August 4, 2008 12:00 am - 64 opinions posted
Brennler, Luna won't run again

By KAREN VELIE

        Atascadero Mayor Mike Brennler won’t seek a second term on the Atascadero City Council because of health concerns.

        And council member George Luna said he will also retire from the council after two decades of public service.
 Read More ...
Posted: Friday, August 1, 2008 12:00 am - 440 opinions posted
Sheriff's deputy slams four parked cars

By KAREN VELIE and DANIEL BLACKBURN

       A San Luis Obispo County Sheriff’s deputy on administrative leave drove into four parked vehicles before flipping and rolling his pickup truck in a July 19 mishap.

       Deputy Bryan Goossens was northbound on Traffic Way in Atascadero at 8:50 a.m. when the chain-reaction collision occurred.

       Currently on paid administrative leave in an unrelated matter, Goossens was not ticketed or charged by Atascadero police officers.
 Read More ...
Posted: Wednesday, July 30, 2008 12:00 am - 134 opinions posted
Fencing Paso Wine Festival may risk city deed

By DANIEL BLACKBURN
                A six-foot-high chain link fence erected around the perimeter of Paso Robles City Park for the city's annual Wine Festival appears to contravene a key component of the benefactor’s original deed requirements. 
                Event sponsors and officials, however, say they remain unconcerned and plan no changes.
 Read More ...
Posted: Monday, July 28, 2008 12:00 am - 31 opinions posted
Fairgoers attacked, allege official cover-up

By KAREN VELIE and DANIEL BLACKBURN

        Three people were assaulted Wednesday night as they exited a shuttle bus after attending a Mid-State Fair concert. The victims contend fair and police officials are downplaying the incident to avoid negative publicity.          

        Following the John Mayer concert, the trio was about to board a shuttle bus at the fair’s main entrance when two young men boisterously pushed their way to the front of a nearby bus line, shouting “PR13,” a gang designation.

 Read More ...
Posted: Saturday, July 26, 2008 12:00 am - 264 opinions posted
Coast Bank's substantial losses expose bad loans

By KAREN VELIE
 

          Coast National Bank is operating at a loss after projecting first-quarter profits, partly because of $9.3 million in non-performing loans.

Bank officials originally reported earnings of $168,000 for the first quarter of 2008, down from $291,000 for the same period in 2007. Bank officials recently reported an adjustment in Coast’s financial statements portraying an after-tax loss of $733,000, and cited questionable loans to developers as one reason.

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Posted: Friday, July 25, 2008 12:00 am - 21 opinions posted
Discrimination complaint filed against county

By KAREN VELIE

       Eight Probation Department employees have filed a lawsuit against the county of San Luis Obispo claiming they were harassed and discriminated against because of their race and gender.

         The plaintiffs, all Hispanic women, accuse the department of five causes of action including allegations of prejudice in promotions, training, workload, and supervisory requirements in the lawsuit.

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Posted: Wednesday, July 23, 2008 12:00 am - 88 opinions posted
State agency lifts Hurst Financial's permit

By THE EDITORS
            A variety of accusations were filed today by the state Department of Corporations against Atascadero lender Hurst Financial and its owner, James Miller, and the agency has revoked Hurst’s permit to sell securities.
            Miller is one of several San Luis Obispo County hard money lenders on shaky ground because of questionable business practices.
            Mary Ann Smith, the department’s senior corporations counsel, charged in the complaint that Miller violated at least five of the permit’s terms.  
 Read More ...
Posted: Monday, July 21, 2008 12:00 am - 76 opinions posted
Law reported closing in on EFI principals

By KAREN VELIE and DANIEL BLACKBURN

        Local and federal law enforcement agencies are investigating Estate Financial Inc. (EFI) and a criminal case is said to be “moving forward” even as a battalion of interested parties scrap over control of the failing hard money lender in federal bankruptcy court.

        Federal Secret Service agents, who had commenced a parallel probe into the Paso Robles’ company’s practices, apparently have decided to halt their examination of alleged fraudulent management of EFI. The Secret Services’ interest in the case stemmed from the agency’s charge to protect U.S. financial institutions.

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Posted: Sunday, July 20, 2008 12:00 am - 190 opinions posted
Medical pot shop owner facing 100 years

By DANIEL BLACKBURN

        Charles C. Lynch sits in his South County home this weekend awaiting the start of a trial that poses for him the threat of a century in federal prison for doing what he thought was the right thing.

        The parents of a San Luis Obispo County youth suffering from bone cancer agree with Lynch, as does a legion of supporters.

        Not agreeing? San Luis Obispo County Sheriff Pat Hedges, and the federal government.

 Read More ...
Posted: Friday, July 18, 2008 12:00 am - 152 opinions posted
UncoveredSLO.com is your watchdog

            Do you enjoy reading UncoveredSLO.com’s in-depth reporting? Do you like the media watchdog function we provide and reader commentaries that follow? Now is your chance to help us continue.  Support us today.

          We thank the many people who have contributed to UncoveredSLO.com, either by advertising, writing a check, or by hitting our PayPal button (see yellow button at top right of this page for info on the proceeding options). And we thank those who soon will contribute.  – The Editors.

          Thank you for your support.

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Posted: Wednesday, July 16, 2008 12:00 am - 52 opinions posted
San Luis Trust CEO says extensive exam routine.

By DANIEL BLACKBURN and KAREN VELIE

       San Luis Trust Bank’s (SLTB) chief executive officer believes that an ongoing bank exam is “routine” but insiders suggest the number of examiners is extraordinary.

        Brad Lyon, who also serves as president of the San Luis Obispo bank, said this week that at least nine examiners from the Office of Thrift Supervision (OTS) are combing through records at the bank for what he termed “purely statutory reasons.”

 Read More ...
Posted: Wednesday, July 16, 2008 12:00 am - 24 opinions posted
Covert attack mounted on trauma center plan

By KAREN VELIE
        Physicians and officials at French and Arroyo Grande hospitals have mounted a concerted but furtive effort to halt plans for an advanced (level-two) trauma center at Sierra Vista Hospital. 

        The behind-the-scenes maneuvering to torpedo Sierra Vista’s plan started only days after representatives of all three hospitals voted publicly to approve it. The proposed level-two trauma center is the centerpiece of a program prepared by a county consultant who contends the facility would save lives and attract more physicians to the county.

 Read More ...
Posted: Saturday, July 12, 2008 12:00 am - 99 opinions posted
EFI investors, creditors planning participation
By DANIEL BLACKBURN

                Investors, builders, and creditors misled by Paso Robles hard money lender Estate Financial Inc. (EFI) are forming a pair of “advisory” committees to participate in an upcoming series of bankruptcy hearings and related actions promising to be both complex and convoluted.

                Meeting privately Tuesday at the Carlton Hotel in Atascadero, 53 people financially entwined with the sinking financial institution laid plans for keeping abreast of, and contributing to, future federal court proceedings.
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Posted: Wednesday, July 9, 2008 12:00 am - 251 opinions posted
Where did Hurst's Beacon Road money go?

By DANIEL BLACKBURN and KAREN VELIE

        Investors wooed by Atascadero hard money lender Hurst Financial’s owner Jay Miller raised $414,000 of an apparent $485,000 loan to help fund a new North County commercial park, but learned within four months that only $198 remained in the investment account. Construction on the Kelly Gearhart/Miller project was never started. 

        And even as the fund money was paid out by Miller’s Hurst Financial to a variety of other recipients not involved in this particular project, the 28-unit “Beacon Road Project” was allegedly conceptually evolving, unbeknownst to investors, from a commercial park into a recreational vehicle storage lot.

 Read More ...
Posted: Wednesday, July 9, 2008 12:00 am - 62 opinions posted
Crowded women's jail is big lawsuit threat

By RON CRAWFORD
 

        A badly overcrowded women’s jail is the result of Sheriff's Department officials' penchant for punishment, a policy that poses for county taxpayers a distinct threat of costly litigation.

        Repeated warnings from successive San Luis Obispo County grand juries and a variety of state regulators regarding severely deficient conditions and worsening overcrowding in the women’s facility have been routinely ignored.

 Read More ...
Posted: Sunday, July 6, 2008 12:00 am - 37 opinions posted
Cuesta College accreditation reaffirmed

By KAREN VELIE

Cuesta College officials learned Wednesday the institution has been removed from warning status and that its accreditation has been fully reaffirmed by the Accrediting Commission for Community and Junior Colleges (ACCJC). 

 “With all the changes we have made, we are definitely headed in a positive direction,” said Cuesta College media relations coordinator Jill Ivie. “We are looking forward to the future.”

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Posted: Friday, July 4, 2008 12:00 am - 14 opinions posted
Night Moves: EFI files fund Chapter 11

By KAREN VELIE and DANIEL BLACKBURN
 

          Estate Financial Inc. (EFI) principals Karen Guth and Joshua Yaguda placed EFI’s Mortgage Fund LLC into voluntary Chapter 11 bankruptcy with a July 1 appearance in Santa Barbara’s Central District of California United States Bankruptcy Court. Their action puts the brakes on a state court-ordered evaluation.

During the past month, EFI officials have reportedly been spotted packing and moving boxes from their Paso Robles office at 806 9th Street, across from the city public safety building. Last Saturday, three days before Guth’s and Yaguda’s trip to the Santa Barbara courthouse and during dawn’s early hours, a black Mercedes and a dark Cadillac Escalade were parked on the street outside EFI’s private entrance while EFI personnel worked behind closed doors, an eyewitness said.

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Posted: Friday, July 4, 2008 12:00 am - 156 opinions posted
Aerial photos aid county planners enforcement

By DANIEL BLACKBURN
                “They” are, indeed, watching.
                Cameras are peeking through the clouds above San Luis Obispo County, and some residents are finding them not only invasive, but expensive. 
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Posted: Wednesday, July 2, 2008 12:00 am - 55 opinions posted
Bank's own appraisal questions Gearhart loan

By KAREN VELIE and DANIEL BLACKBURN       

        A million-dollar loan from Heritage Oaks Bank to North County developer Kelly Gearhart earlier this year was based on “erroneous” and questionable claims, according to the bank’s own appraisal.

        That appraisal was not received by bank officials until nearly two months after the loan proceeds had been paid to Gearhart.

 Read More ...
Posted: Tuesday, July 1, 2008 12:00 am - 61 opinions posted
More state allegations heaped on EFI

          The State Department of Real Estate (DRE) has filed accusations against hard money lender Estate Financial (EFI) of Paso Robles for eight causes of action that include “misrepresentations and false promises made to investors and acting fraudulently and dishonestly in making under-secured loans.”

          The accusations were detailed Friday on the state agency’s Web site.

 Read More ...
Posted: Tuesday, July 1, 2008 12:00 am - 67 opinions posted
Update: EFI's bankruptcy expectations

By KAREN VELIE
              Estate Financial Inc. (EFI) will remain in bankruptcy for at least the next few months and at the same time independent evaluator Hanno Powell will continue his audit, the Fresno attorney said earlier this week.

               A “complete evaluation” of EFI’s books was ordered during a June 16 San Luis Obispo Superior Court hearing. During that hearing, a group of investors requested the court appoint a receiver to oversee the company’s $170 million mortgage fund. A week later, the Department of Corporations, on behalf of the people of California, joined the plaintiffs in their request.

 Read More ...
Posted: Sunday, June 29, 2008 12:00 am - 103 opinions posted
RIP: The Rogue Voice
By DANIEL BLACKBURN

          A literary citadel in this county has tumbled.  

          Editor Stacey Warde and Publisher Dell Franklin announced Monday that The Rogue Voice, a San Luis Obispo County journal of literature, eclectic writing, and grand intent, will publish its final issue in July.
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Posted: Wednesday, June 25, 2008 12:00 am - 43 opinions posted
EFI forced into Chapter 11
By KAREN VELIE and DANIEL BLACKBURN

 

          Creditors forced hard money lender Estate Financial Inc. (EFI) into Chapter 11 bankruptcy proceedings Wednesday in Santa Barbara’s Central District of California United States Bankruptcy Court.

 

          Five petitioners listed more than $6.9 million in debt owed by EFI as the catalyst for their action. The petitioning group includes builders who claim EFI failed to follow through on agreements to fund projects. They further contend the lender did not defend against a lawsuit as agreed.
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Posted: Wednesday, June 25, 2008 12:00 am - 169 opinions posted
EFI evaluator seeking quality investor information
By DANIEL BLACKBURN and KAREN VELIE

                A Fresno attorney appointed earlier this month to widen the examination of troubled lender Estate Financial Inc. (EFI) is enlisting the help of UncoveredSLO.com’s readers.

                Independent evaluator Hanno Powell, an attorney with the firm of Powell and Pool, posted two messages June 21 on this Web site, seeking help from investors with specific knowledge of questionable activities by EFI personnel.
 Read More ...
Posted: Tuesday, June 24, 2008 12:00 am - 43 opinions posted
Federal attention aims at lending fraud
         A federal investigative task force looking into mortgage fraud and related offenses in a seven-county region including San Luis Obispo County will utilize at least 40 FBI agents and investigators from nine other U.S. agencies.

 

        Dubbed SCAM (for Southern California Mortgage), the program was recently initiated, though the probe has been underway for months. San Luis Obispo is one of the seven Southern California counties included in the task force’s range. More than 100 separate investigations are currently being conducted in the region, according to FBI officials. 
 Read More ...
Posted: Friday, June 20, 2008 12:00 am - 78 opinions posted
Ill man tossed under wheels of county justice
By KAREN VELIE

 

          Les Harvey’s nightmare encounter with “the system” started with a hamburger.

 

          Outside a McDonald’s in Arroyo Grande, Harvey, 64 and terminally ill, sat in his parked van and started to eat his dinner, the burger he had just purchased from the fast-food eatery. For that, he was about to be forcefully arrested, stripped of his earthly belongings, and sentenced to a year in Atascadero State Hospital, an institution for the criminally insane.
 Read More ...
Posted: Thursday, June 19, 2008 12:00 am - 42 opinions posted
COMMENTARY: Try not to irritate Lon Allan
By DANIEL BLACKBURN

          I have a recurring dream in which the local media crowd works in concert to slay the dragons of government corruption and to cultivate an environment of informed citizens. And then I open my eyes, and my Tribune, and realize what a far-away fantasy that really is.

          It is a closely-held belief of mine that newspapers assume a public trust when they publish, and that applies to UncoveredSLO.com. That’s why Trib columnist Lon Allan’s latest love letter to his Atascadero political cronies in today’s issue is oddly disconcerting.
 Read More ...
Posted: Tuesday, June 17, 2008 12:00 am - 96 opinions posted
Paso merchants lost big on Memorial Weekend
By DANIEL BLACKBURN

          Angry Paso Robles downtown merchants are reacting to what many are calling a Memorial Weekend financial disaster triggered by city officials responsible for the sudden departure of one of the nation’s largest car shows.

          Local business owners are reporting revenue losses of as much as 75 percent for what had been a weekend revenue bonanza.
 Read More ...
Posted: Monday, June 16, 2008 12:00 am - 20 opinions posted
Estate Financial evaluator appointed

San Luis Obispo Superior Court Judge Barry T. LaBarbera Monday initiated a complete evaluation of the books of Estate Financial Inc. (EFI) mortgage fund.

          LaBarbera appointed Hanno Powell -- an attorney from Fresno experienced in receiverships -- to look into EFI’s records unencumbered for 30 days.

 Read More ...
Posted: Monday, June 16, 2008 12:00 am - 183 opinions posted
Just the facts, ma'am

By THE EDITORS


        A Cal Poly official took to the airways Monday to dispute portions of an UncoveredSLO.com article posted last week. 



        Amy Hewes, director of publications and communications for the College of Engineering, argued on Dave Congalton’s 920KVEC Hometown Radio show that she disagreed with parts of the article, “Cal Poly’s College of Engineering budget bleeds.”

 Read More ...
Posted: Tuesday, June 10, 2008 12:00 am - 39 opinions posted
State regulators cancel EFI sales permits
By KAREN VELIE

 

        Estate Financial Corp. (EFI) of Paso Robles can no longer solicit nor accept investor money because the troubled lender’s state permit to do so has been revoked.

 

        Specifically, regulators from the California Department of Corporations (DOC) have stopped the firm from selling mortgage fund securities and part interest in real estate investments. The revocation follows on the heels of an earlier suspension.
 Read More ...
Posted: Monday, June 9, 2008 12:00 am - 210 opinions posted
UncoveredSLO.com is your watchdog
          Do you enjoy reading UncoveredSLO.com’s in-depth reporting? Do you like the media watchdog function we provide and reader commentaries that follow? Now is your chance to help us continue.  Support us today.

 

          We thank the many people who have contributed to UncoveredSLO.com, either by advertising, writing a check, or by hitting our PayPal button (see yellow button at top right of this page for info on the proceeding options). And we thank those who soon will contribute. There is strength in numbers. We are in this to stay, with your help.  – The Editors.
 Read More ...
Posted: Monday, June 9, 2008 12:00 am - 66 opinions posted
Mussel inspection method lacking?
By KAREN VELIE

 

        A tiny, invasive bivalve and a statewide drought of increasing severity are on a collision course in San Luis Obispo County.

 

        Hoping to prevent an infestation of the Quagga mussel into local waters, the county Parks and Recreation Department has launched a counterattack that some observers suspect may be counterproductive. Those efforts also may be wasting water and financial resources.
 Read More ...
Posted: Friday, June 6, 2008 12:00 am - 12 opinions posted
Cal Poly College of Engineering budget bleeds
By KAREN VELIE and DANIEL BLACKBURN

 

        Red ink sullies Cal Poly’s College of Engineering and the internationally respected educational institution now operates at a deficit for the first time in decades, according to a slide prepared, presented, and distributed by the College of Engineering during the fall conference.

 

        Former and current associates on both coasts point blame at the controversial three-year reign of college dean Mohammad Noori, the highest paid dean, adding salary and perks, in the California State University system.
 Read More ...
Posted: Friday, June 6, 2008 12:00 am - 85 opinions posted



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Commentary

In praise of citizen dissent
      
       Nothing awakens me faster than reading something outrageous in the morning Tribune. An editorial “brickbat” given by that daily “newspaper” today to 2,000 Paso Robles citizens is stifling, counterproductive, and a blatant disservice to its readers.
       Unhappy with water development plans drafted in the back rooms of City Hall by secretive officials, a group of residents formed to – gasp! – take part in their local government. For this action, they have encountered the ire of the daily’s editorialists, who cleave to the concept that local government officials can do no wrong, and the rest of us should just stand back and pay up.
 Read More ...
 
Give us the money and shut up!
 
       I see a few of my favorite boo-birds have been wondering where I’ve been. To those anonymous pseudonym-scribbling people I say, take your pick: On a superior bender, or in rehab? A guest at the Pat Hedges Hotel? Saving the baby seals? On a deep-cover investigative assignment?
       What I will acknowledge is that I was not in Hawaii tailing a gaggle of Heritage Oaks Bank board members on their “annual trip to the islands,” as one left-at-home shareholder testily termed it while grousing to a CalCoastNews reporter. Was that voyage, taken by leaders of a private business, any of the public’s business? Was it news? In view of the current taxpayer-funded bank bailouts and the AIG billion-dollar bonus brouhaha, it was, decidedly so. Allow me to elaborate.
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Shame on District Attorney Shea
 
       I’m a big fan of irony, and when it’s really good irony, I go speechless. This explains my dumbstruck silence after noting this recent headline in the daily disappointment: “Grand jury praises D.A.’s actions.”
        The headline and its accompanying public relations message came as a particularly unpleasant shock to Tom and Elizabeth Scruggs, whose 17-year-old daughter, Sarah, was the tragic motivation for the district attorney’s current Grand Jury acclaim. Sarah Scruggs died in 2002 after being struck by an SUV driven by Kenneth Freitas, the son of a high county official. District Attorney Gerald Shea and at least one of his henchmen purposely deep-sixed the case until it almost expired by statute. This is reason for applause?
        I wonder how Mr. D.A. felt when he saw the story, knowing as he does that for him to get any positive credit for this is pure crap.
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