Pacific Coin: The Untold Story (Must read; no comfort for the Davis campaign).

Bill Simon Campaign | 08/06/2002

[daviddennis]

The Simon Campaign was kind enough to pass this very interesting article to me. In brief, it was exactly as I had expected.

I would refer you specifically to Hindelang's veto power over any merger or public offering, and his signed agreement to the takeover of Golden-Tel.

It would appear that the plantiff's attorneys took full advantage of the present political climate and anger against businesspeople. But it doesn't look like they paid much attention to the facts in the case, which are extremely clear cut and obvious. Just as I had suspected.

[Ernest_at_the_Beach]

Very good !

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[Tony in Hawaii]

Looks like they'll be calling him Ed Hindenburg before too long...

[Ernest_at_the_Beach]

ping!

[gubamyster]

When is this case to be heard? And when would the judgement be overturned (at the same time or later)?

[goody2shooz]

Oy! I can't stand Davis, but this is awful.

This thing does not bode well for Simon for an important reason: he should have thoroughly checked out Hindelang before investing. It highlights that he used poor judgement in not doing so. His use of "other family members pressured me" as an excuse looks weak as a defence. He has enough money that he could have at least followed his intuition and had a more thorough, personal investigation done.

I would never get into bed, literally or businesswise with anyone whose background I hadn't investigated using PIs, or private investigators. (This knowledge was acquired the hard way - experience!) Nowadays you have to look into people's private lives. Going back 10 years is insufficient, it is necessary to go back to the teen years. Deloitte and Touche just skimmed the surface.

[goldstategop]

Yup. You would go and look back further. I'm surprised Simon's firm didn't check as far back as records allowed. The federal government investigates any one for a high level federal positively exhaustively before that person is hired. One woulda thunk the Simon firm was as rigorous in their running a background check on Paul Hindelang. No wonder they got hit with a $78 million judgment. It shows what can happen in the business world when you don't dot and cross all your I's and T's before entering business with someone you don't know.

[snopercod]

Unfortunately, the facts of the case exceed the attention span of 90% of Californians. What will stick in their TV-conditioned little minds is:

Businessman=Thief

[Coop]

What will also cross their minds is Davis = incompetent thief.

[randita]

A question for you: I saw yesterday where PG & E's bond rating has just been lowered to "junk" status by Moody's. Have you heard what the rating for CA's bonds is? I think that info should be out, if not now--then soon.

[Gophack]

What you have to realize is the SIMON WASN'T A PARTY TO THE LAWSUIT!!!! It wasn't his deal. That's what REALLY gets me, is that the press keep talking about this, and Simon wasn't even named as a defendent!!!!!!

[ElkGroveDan]

he should have thoroughly checked out Hindelang before investing.

You have to understand the SCOPE of the investments of a company as large as Simon and Sons. This was one of hundreds of business investments they were involved in at the time.

A typical corporate background check was conducted by Deloitte Touche, a major accounting firm used by Simon & Sons. The search went back 10 years and focused on Mr. Hindelang’s professional reputation. By all accounts, he was a recognized leader in the industry. His drug past was beyond the ten-year window typical of these investigations

A professional background check is certainly reasonable and prudent. That's why you hire those kinds of businesses. That Bill himself should have been looking into the guy's background is sort of like suggesting The President go investigate potential postal employees.

[daviddennis]

But his intuition was not with the guy, who fooled just about everybody he did business with, but rather with the deal. So when he couldn't convince his partners not to take the deal as a deal, that was the end of it.

I really can't hold Simon's family to any higher standards than a reasonable man would have at the time. I'm sure Delotte was following current best practices in following him back for ten years, and I would think this is as far back as public records go in any event. It would have coat a boatload of money to go any further, and there was no indication that they'd find anything.

I think most people would find your cautious attitude just a shade extreme. Most people who stay clean for 10 years are going to stay clean for the rest of their lives. This is a very rare incident where this guy's past came back to haunt him.

I think it's important to bear in mind the following, and close this one out for good:

• Simon would not have made this investment, and
• The terms Hindelang offered were fair, and there was no moral problem with what the investment company did.

That closes it all, far as I'm concerned.

D

[Stallone]

B * I * A * S

The media are anti-American Socialist trash.

[Gophack]

BUMP!!!!!

[ElkGroveDan]

CA-WIDE PING

[My2Cents]

Interesting, yes, but do California voters have the patience to wade through this information? As unfair as it may be, I didn't see this article splashed across the front of the Sacramento Bee or the LA Times today. What I DID see splashed across the front pages of those esteemed purveyors of news was the article last week that Bill Simon's family firm was found guilt of corporate fraud.

The more Simon has to explain about all of this, the more it's a dead weight around his neck. I didn't hear the interview, but Simon was on KSFO this morning. He spent most if not all of the time talking about this litigation. It's very deadly to spend all this free radio time trying to explain some arcane business deal when he should be blasting away at Gray Davis. I hate to say it, but he is showing himself to be an incompetent campaigner, and that's the one thing that was suppose to be a Simon plus: his competence in contrast to Gray's incompetence.

[My2Cents]

All true (about Bill not being party to the litigation). But who out there really cares to make the distinction? All the public knows is that Bill Simon's family company has been found guilty of fraud.

The fact that we, here on FR, spend so much time disecting this litigation battle is an indication of how troubling this case is, and how much bad news it is to the hopes for unseating Davis. Just read the post again. It smacks of defensiveness. That's deadly in a campaign.

[editor-surveyor]

This story need to get some wings.

[Mr. Jeeves]

What you have to realize is the SIMON WASN'T A PARTY TO THE LAWSUIT!!!!

What difference does it make? The Democrats have already won the Headline Wars on this one. Simon's only salvation is that no one is really paying attention right now.