California: Fraud Judgment stuns Simon

Sac Bee ^ | 8/01/02 | Emily Bazar and Dan Smith

[NormsRevenge]

GOP gubernatorial nominee Bill Simon predicted the jury's decision would be set aside or overturned. The investment firm he co-founded was among the defendants sued for fraud in the takeover of a pay-phone company.

A Los Angeles jury Wednesday found the investment firm co-owned by Republican gubernatorial candidate Bill Simon liable for $78 million in damages after concluding it engaged in fraud during a botched takeover of a pay-phone company.

[NormsRevenge]

DUMP DAVI$ & the Den of Socialists

GO SIMON

[goldstategop]

The Rats are beside themselves with joy. The Simon threat has been disposed of.

[Salvation]

So who is bringing a suit against Davis for all the fraud he committed in the Kalifornia energy crisis?

[goldstategop]

GrayDown? He's just a misunderstood bungler. The liberals will say the fraud verdict is proof Simon is a crook out to fleece California the way he did the guy who invested with his firm.

[NormsRevenge]

How do you fleece a bankrupt state? GraYouT should be haPPy Simon wants to be Captain of the Titanic of the West. LOL

[goldstategop]

LOL! Its not my view, its just what my understanding of how the attack line from the Left against Simon is going to be in play from now til Election Day.

[Kobyashi1942]

Simon ist Kaput.

[Inkie]

No mention of the bribery of Gov Gray, though, in his appointees' sudden change of heart about allowing CosCo to dump poisonous pollutants into San Francisco Bay. Funnily enough, CosCo forked out $70K to the Davis campaign a couple of days later, having given nothing but a pittance to Davis in the past. Funny that. Sacramento Bee, where are you on this one? Nowhere to be found. SF Chronicle? MIA. The San Jose Mercury is the only one to raise the topic and, given their editorial views, I wonder how long that will last.

[RightOnTheLeftCoast]

Funny... back in 2000, when Bill Simon first crossed my radar screen, I did a little research and found the Hindelang episode. By then Hindelang had been fired, and the question in my mind was how the heck did he manage to make it past Simon & Sons' due-diligence process? It was obviously a very costly oversight... and now it's gone even more costly!

Well, it turned out that the due-diligence had been performed for Simon & Sons by Deloitte & Touche. Interesting... a friend who is an (exceptional!) business-intelligence researcher found tons on Hindelang in the public record in a few minutes, but D&T had managed to miss it all. IMHO Simon & Sons might have a case against D&T for their failure to find this stuff.

I'm trying to dig up the information again and will post any public-domain stuff as I can.

[Kobyashi1942]

The Rats are beside themselves with joy. The Simon threat has been disposed of.

Sad, but true. Ofcourse, one could always ask "where were all the lawsuits against Davis over his scandals with Oracle, Enron, the Enviroment, the energy crisis, etc.?"

Simon's political advisors must be Democratic opperatives since they've really done a number of him and the California GOP.

[goldstategop]

Well in that event we should hang out our hats and stay home in November and let the Rats run the state into the ground under GrayDown over the next four years. They want a scorched earth California? If misery truly loves company, I'm tempted to say let em have it!

[slimer]

Timing is everything.

[goldstategop]

I think you're talking about Gerry Parsky and the RINOs who've taken over the state GOP apparat here. I wouldn't be surprised if they were willing to cut Simon loose so they can claim a conservative is too extreme to win in California. They'll be claiming in the post election mortem, hey we told you so, Dick Riordan was electable but no you had to choose an extreme conservative. Simon's being buried for stuff that would get Bill Clinton into the White House. His big disadvantage is that he's a Republican and more importantly he is a conservative and that is the one thing loathed by the California media. Expect them to milk the jury verdict for all its worth.

[NormsRevenge]

Hi Kob.. Good to see you're still kicking! This should make for some spirited televised debates.

[gubamyster]

They'll be claiming in the post election mortem, hey we told you so,

There will be NO post election mortem, because Simon is going to win! Despite being down 15 points a few months ago in the field poll (if these numbers are true) he has taken a 1.5 point lead in the ABC Poll released yesterday. This despite very few TV ads.

[goldstategop]

I was playing devil's advocate. Do you think though Simon is toast as the liberal media thinks that this is the BIG ONE that has finally sunk the S.S Simon? FWIW, I hope you're right.

[gunnedah]

Probably a fact -but this is the way American politics are now.You have a choice between two scam artist.Unreal!

[goldstategop]

It reminds one of the truism that if politics allowed only saints, no one would run.

[NormsRevenge]

"A jury is far more aware now that financial wrongdoing can take place from responsible executives, or seemingly responsible executives, and that has to be factored in by anybody going to trial these days."

It does? All businessmen are corrupt, I rekkun. That's what a lawyer said. :-)

I wonder what the factor number for GraYouT would be?

[Southack]

While I'd love to see Simon win and rejuevenate his state, deep down I really think that most of California deserves the certain demise that will accompany Davis' re-election.

At least then when California's debt, crime, budget, water, power, and infrastructure crisis all explode, the media will have no Conservative left in power in California to blame.

[Gophack]

Please, don't be so melodramatic. Simon wasn't even named in the lawsuit. The guy who sued the company is a convicted drug smuggler.

[gubamyster]

You have a choice between two scam artist.

Although a Republican, believe me, I'm not too high on any politician, Dem or Rep. However I do believe Bill Simon is a good guy, and very honorable. No, I do know him, but I have heard him on many talk shows & have read much about him. I would hardly call him a scam artist. You really need to read more in-depth about this case, than just one headline.

It is interesting how after one dubious charge, a person can be labeled "scam artist."

[NormsRevenge]

It Ain't Over 'Til the Fat Lady Sings !!!

[Gophack]

Are you sure you're not a Democrat plant? Or maybe a Riordan crony who isn't happy that the liberal lost? The election hasn't even started, it's definitely not over.

Davis has spent more than $8 million in television ads this summer, and his unapproval ratings are as high as ever. The last poll -- by KABC -- shows Simon two points up on Davis. ALL polls (except Field, which is almost always wrong) has Simon up ... and the KABC poll was done when all the tax return crap was in the news.

Simon wasn't even named in the suit, and the family company was sued by a convicted drug runner. Hmmmm. Maybe that'll help Davis in San Francisco, but no where else.

Let's see how this plays out before we jump to hasty conclusions, shall we?

[goldstategop]

The Rats are good at drumming a Big Lie in people's heads. If they repeat it often enough, the facts won't matter. It won't matter if Simon wasn't named in the lawsuit. They just have to charge that his personal ethics are suspect even if he has no present involvement with his own firm. That's how the politics of personal destruction works these days.

[Gophack]

Simon wasn't named in the suit. Read the story again.

[blackdog]

Time for the party heads to start supporting the average good Joe/Jane in running for office. This nonsense of party backing of long term corrupt politicians, and corrupt business people solely because they can raise funds and squeeze the fundraiser like it say's Sunkist on it has got to end. Simon is what he is. Reality proves that he steals in the private sector, and davis steals in the public sector. Are they really any different? No..........

[blackdog]

California needs to be embarassed. Their best to offer is about the bottom of the barrel.

[goldstategop]

LMAO. The funny part is one wonders how Simon would steal from the California treasury after GrayDown has finished looting it. No sane man in this state would want the Governor's job, what with the problems we have. So I guess if it takes a man of questionable ethics to prosecute them, when all is said and done I'd rather have Simon's than GrayDown's ethics to live with.

[goldstategop]

Every one is corrupt.... yeah like people didn't notice it before turning on CEOs became all the rage.

[blackdog]

Note to RNC....Endorsing candidates from the telecommunications industry is not a smart act. Anyone who actually tries to understand their phone bill recognizes fraud when they see it.

[evolved_rage]

It Ain't Over 'Til the Fat Lady Sings !!!

In Kalifornia, it ain't over until the fat-lesbian-abortionist sings. But I agree, let's wait and see...and hope...

[goldstategop]

Paul Hindelang, the guy who won the lawsuit, was a drug smuggler. If we had an honest to goodness press, imagine how the real media headlines would have read: "Honest Businessman Stunned By Court Verdict Gone Awry; Drug Smuggler Wins Millions." Note to Simon's campaign: Your firm's accounting partner goofed and failed to catch this guy's unsavory past and now you're left holding the bag. Incidentally, I agree with Simon the verdict was substantially flawed. The judge will either set it aside or it will be overturned on appeal, but quite frankly this just wasn't the kind of news Simon had been expecting. You sometimes meet shady characters in life and sometimes they come back to really hurt you. For the record, after playing the devil's advocate in much of this thread, I have to say Simon's personally not a crook or guilty of anything wrong. His company tried to protect itself from someone no one would want to do business with. In view of the political climate, the jury looked for someone to blame and alas, it didn't turn out to be the guy with the shady past.

[NormsRevenge]

We still have over a month before this election really gets going .. All this stuff is just setting the stage ...

Hell, Im gonna take a cruise to Alaska in late August and get back after the Labor Day Holiday. Got to get rejuvenated and ready for the home stretch and the real campaign and debates.

If I was Simon, I'd be like a duck and let all this crap roll off his back.

[Free the USA]

fyi

[evolved_rage]

The lawsuit against Simon's firm, B-R Investors Inc. and other defendants claimed that Pacific Coin failed because the investors concocted a secret plan to take the company public.

If it was a secret plan, how did it impact the company's finances, and escape the notice of the CEO, resulting in bankruptcy?. Investors are typically not allowed to book expenses or make deals unless they are officers of the corporation. And even then, somebody (CFO, CEO, Controller) looks at the books once in a while.

While formulating their aggressive strategy, the lawsuit stated, the investors misled businessman Paul Edward Hindelang, a founder of Pacific Coin, about their intentions. Instead of telling him about their ambitious plans for a public offering, it said, they promised to follow his slow-growth strategy..

So what!!! Hostile takeover, hostile intentions. Did they use the company's money to pay the pre-IPO expenses? How did Hindelang miss this drain such that the compant went bankrupt?

"Defendants steered Pacific Coin from one disastrous transaction to another -- solely for defendants' benefit," the lawsuit said. "In so doing, defendants actively misrepresented to, and concealed information from, Pacific Coin Management to prevent it from blocking these ruinous transactions.".

So Hindelang or the CEO was FORCED to make bad decisions...You would think an old pothead would be more paranoid--and is a jailbird ever honest????

Love those LA jurers. How many SAG idiots in the box?

[Ernest_at_the_Beach]

Thanks for the ping!

I think I will just index this without pinging everybody!

[NormsRevenge]

LOL ... Yup, Too Much of this Kind of StuFF could make the natives restless!

[blackdog]

But, it can be expected that big business leaders on the campaign wagon bring with them some huge risks to the party. Think back on all the bosses and managers you had direct contact with that did behave unethically? I had quite a few. Liberals who are relatively unable to make decisions, just debate them to death and spread wealth to those who help them have a much more silent group that they interact with.

I worked directly with a CEO of a large office products company who would state in meetings all the time, that he is "going to do this or that, but I'll deny have ever having said it outside this room" If that guy ever ran for office, I would crucify him publicly, republican or democrat.

[gunnedah]

I really dont want to be unfair to Simon and many a person in prison is better than Davis. But in saying that most of the scum and power brokers in this country are never caught and mentioned.They know how to handle the system of so called justice and the press and the beat them both like a drum.The ones that control the green control America and you will never no it in most cases.Simon probably is on the second rung of the ladder right next to the top but he knew what went down if anything or was stupid and I dont believe he is stupid.