Sunday, May 3, 2015

Yet another Encinitas Ponzi scheme

Three years after we wondered whether Encinitas was the Ponzi capital of America, the answer seems to be yes, yes it is.

First there was Scott Bottolfson. Then there was John Clement's EdgeFund. And then Steven Hamilton.

And now meet Dennis Eugene Long:
Dennis Eugene Long stole a lot of money over the years — nearly $1 million from dozens of victims, including about 30 who showed up at his sentencing hearing Tuesday.

But it wasn't just the financial losses that prolonged their hurt.

"You stole not only money but trust," Suzanne Stoneall said to Long, who was inside a holding cell in a Vista courtroom. He had been the man she came to know through Bible study as a big brother.

[...]

Prosecutors said Long, 65, of Carlsbad defrauded at least three dozen families out of $5,000 to $87,000 after persuading them to invest in an herbal Viagra-type drug business. He told them the company had just been sold to a larger company for $4 million, but it wasn't too late to get them in on the deal because some earlier investors had backed out.

Long told the victims, who he had met through churches or his daughter's volleyball clubs, that he had been a successful businessman and a corporate-level official at Target. Court records show he worked as a retail clerk at an Encinitas Target until he was fired. An investigation by Carlsbad police indicated he had been selling shares of the bogus herbal supplement company since at least 2005.
Though the U-T cites Long as most recently having lived in Carlsbad, public records show him having lived on Swallowtail Road at the north end of the golf course in Encinitas, as well as having worked at the Encinitas Target.

What brings so many Ponzi schemers to Encinitas? Is it a population of gullible people with a lot of money?

In any case, if a middle-aged white male from Encinitas offers you an investment opportunity, just walk away.

36 comments:

  1. Seems to good to be true, it is... buyer beware.

    ReplyDelete
  2. COE to spend $1.35 million on Leo Mullen Park to add lights and ARTIFICIAL turf... to save WATER. LOLOLOLLLLLLOOOOOOLLLLLOOOOOLOLOLOLOLOLLLL. All this after planting 7 acres of REAL GRASS at the new Encinitas park. What a bunch of maroons, shlubs, morons.
    On the bright side the KEEP LEUCADIA CRAPPY club members are doing cartwheels down 101 as the streetscape is ignored again by city officials.

    ReplyDelete
    Replies
    1. The park is purple pipe. Either it gets used to water grass, or pumped into the ocean. Either way, it doesn't draw down the reservoirs one drop.

      I suspect you are the same person who posts the same thing over and over, even though it's been pointed out a hundred times why your argument is wrong.

      Delete
    2. Didn't the streetscape proponents get a major win when the city prioritized funding the entire streetscape plan?

      Delete
    3. 10:22 AM

      You might want to pull you head out of your butt. The weather has been nice and possibly you'll be semi-cognizant of what's going around you.

      As noted above and many, many times prior, the community park is using recycled water (purple pipe). It's not good enough to drink but it waters the grass just fine.

      The council voted to find the money to fund 100% of the North 101 Streetscape construction plans. Prior to this they had only funded partial (30% I think) plans. If the KLC club are doing cartwheels it must be for something else because the council chose to stop ignoring the North 101 Streetscape and also have prioritized the Leucadia Blvd / Hygeia roundabout.

      So please try to be a sentient being.

      Delete
    4. 10:22 AM

      One more thing. They're looking at artificial turf for the Leo Mullen soccer field because of the wear and tear on the grass from its heavey use. That's expensive and it requires closing the field each year to replant the grass. Most high schools in the county use artificial turf for their football fields because it's cheaper in the long run and requires less maintenance. Saving water isn't the driving force here.

      Delete
    5. 5:42,5:49- Gee, I'm sorry you can't handle the truth. Even the exalted Leucadia blog acknowledged that the streetscape will never be built.
      Hell your city won't even water, even if it's purple water the plants and flowers that they planted in Leucadia. No council member has ever publicly stated they support the streetscape. If wear and tear is the criteria for artificial turf...well then put it at Leucadia Roadside park. The city is letting the grass die anyway. If it's not the city killing the grass, it's the bums.
      AS for the KLC club, yes they are doing cartwheels on the north end of 101, opposite the gas station there 2 dead oleander "trees" their national bush, you'll find them dancing and burning incense at these trees every full moon.
      PS- the world if full of blue prints and plans of building , roads, monuments that have never been built, the fact your city has funded the planning stage of the streetscape means nothing.

      Delete
    6. 9:06 AM

      "Hell your city won't even water"... "the fact your city has funded..."

      Does this mean you aren't a resident? Because if you aren't a resident it would partially explain your ignorance.

      Delete
    7. 11:36, I think that proves 9:06 is Debbie Downer.

      https://www.youtube.com/watch?v=hXmRJ7VrNss

      Delete
    8. This comment has been removed by the author.

      Delete
    9. Speaking of water the Encinitas post office sprinklers water the street, continuos small rivers on both sides. So the govt can waste all the water they want I guess.

      Delete
  3. The Leichtag Foundation announcement --

    Young and Aspiring Farmer Mixer – Thursday, May 7

    Come meet and mingle with fellow young and aspiring farmers for an evening of music, food and beer.

    ReplyDelete
  4. Aspiring farmers in Encinitas. Sounds like their mixer will have few ingredients.

    ReplyDelete
  5. "What brings so many Ponzi schemers to Encinitas? Is it a population of gullible people with a lot of money?"

    Based on many of the comments on this blog I'd say Encinitas is a Target rich environment.

    ReplyDelete
    Replies
    1. Yeah. You didn't get scammed by Bernie Madoff. You got taken by the Target checkout guy. Let's face it, you weren't likely to hang on to that money anyway, right? It was a good ride.

      Delete
    2. Don't forget the Pinnfund guy up in Carlsbad. San Diego county has a history of scammers, from C. Arnholt Smith to J. David Dominelli and Rodger Hedgecock.

      Delete
    3. Michael Fanghella, Pinnfund...

      http://www.sandiegoreader.com/weblogs/financial-crime-politics/2010/apr/18/michael-fanghella-seeking-150000-job/

      Delete
  6. Two Encinitas City Employees Endorse Vendor's Product

    Finance Director Tim Nash and Communications Officer Marlena Medford are now endorsing a vendor's product.

    Tim Nash gushes over the vendor's product called OpenGov.

    The vendor's article has some quotes from Nash and Medford -

    Nash and Medford’s collaboration and leadership established Encinitas as a regional leader in transparency and civic engagement. Nash, for example, has observed a reduction in requests for information about finances. “We see fewer people at council meetings bring up problems regarding finances because they can now easily look up the information. I have not heard any complaints from citizens not being able to find information,” he added.

    Marlena Medford sings high praises for the product.

    OpenGov complements a suite of tools that Medford and her team has employed to build citizen engagement and trust, including social media and other online citizen polling tools. “Direct links to all of these tools have been placed front-and-center on our main homepage so the public can easily access them. Together, these resources improve communication, trust, and engagement within the community,” added Medford.

    Didn't Nash and Medford read city policy of NO ENDORSEMENT OF VENDOR PRODUCTS.




    ReplyDelete
    Replies
    1. It's hard to believe that the quotes were written by Nash and Medford. They sound like ad copy. Did they get paid for this?

      Delete
    2. Every company and government entity has such a policy these days. But they also have an exception process. The vendors know that there must be something in it for the client to trigger the exception process. Therefore many vendors have created pricing and discounting strategies designed to work the system. There are discounting teirs and favorable contract terms that are reserved for reference clients only. At my company, there are a complex system of incentives connected to different kinds of reference: willing to discuss your experience with another prospective client on a private phone call? Willing to discuss your experience with press, media or industry analysts? Willing to provide quotes for PR articles (as in this case)? Willing to allow your logo to be used on our slides and website? Willing to tell your story in an internal conference call or company meeting? Willing to tell your story on an external podcast or video? Willing to tell your story at a trade show or event?

      Each of these has a value, so we have incentives built in to the operating model to encourage clients to participate. In fact, I know of one client who barely pays us at all. On paper, we lose tons of money on them. But they are a household name, with a famous CEO. You have probably seen TV commercials for my company featuring the CEO of theirs.

      It's similar to celebrity endorsements of products, only the law does not allow direct payment for an endorsement.

      Bottom line: if you want the city to stand on principal and eschew all endorsements, that's fine, but understand that it means the city will end up paying more and getting less from vendors. Endorsements are a value for value exchange.

      You may not like it, but that's how business works today.

      Delete
    3. THE ARTICLE WAS POSTED ON LISA SHAFFER'S FACEBOOK PAGE, AND SHE USES IT AS AN OPPORTUNITY TO PRAISE STAFF!!

      On Lisa's April 28 Facebook post she states, "Glad to see our city being recognized for investing in systems to make information more accessible to everyone."

      Delete
    4. These quotes are under the Case Study format which isn't strictly endorsements. In my public sector experience which included buying a number of systems and writing contracts, I don't recall ever encountering incentives as 6:48 AM describes. Although I never did an "interview" for a vendor's case study, I've known those who have. This isn't considered a formal endorsement. I have had individual interviews by prospective purchasers of the product when they are in the evaluation process just as I've interviewed others.

      This is much ado about nothing. It's common practice in the industry. Move on to something else.

      Delete
    5. 9:41 has more experience that I do in public sector contracting (6:48). Most of my experience is in commercial enterprise private sector. I wouldn't be surprised if the public sector operates under more conservative rules. I know if we have an all day meeting with a public sector team, we are prohibited from providing lunch.

      Delete
    6. 10:20 AM

      That's always a murky area. One organization I worked at temporary clamped down so hard we couldn't accept a cup of coffee during a vendor office visit without paying for it. Not very practical. We offered them coffee when they were visiting and in some places where a coffee club setup provided the service, I chipped in the money.

      I've had lunches paid for by a vendor (as long as they are modest) and I have paid my own. I've even paid for both our lunches with a vendor rep. That stuff has never influenced me one way or the other.

      I've just never encountered incentives in contracts as you described them. I doubt our lawyers would have agreed to them and I certainly wouldn't. Since you don't know how well things will turn out when you sign a contract, having an "endorsement" type incentive would appear to me to be a disincentive. I never hesitated "beating" on the vendor when they weren't fulfilling terms of the contract.

      Delete
    7. Some posting in defense of this could be among our range of consultants hired to "market." Instead of spending money on stuff like this, why don't they do a good job in the first place instead of paying to spin everything--and this includes our communications specialist position. She is a nice person, but we don't NEED this position.

      Delete
    8. 11:15 AM

      'Some posting in defense of this could be among our range of consultants hired to "market."'

      I can't speak for others but I'm not. Of course if my trying to honestly explain things to you is just "spin", maybe I shouldn't bother. I guess you'd rather remain ignorant.

      Delete
    9. 11:13,

      Two clarifications:

      1.) Internally, the incentives are discussed in frank detail, with relative value applied. If we have a conference coming up with a paid slot for a client to tell their story, and no one committed to fill the slot, then the relative value of that specific type of endorsement has a very high value. Conversely, if we have tons of logo references from a particular vertical market, then adding one more doesn't have much value. Externally, the package of pricing, terms, and client reference agreement is proposed to the client as a cohesive whole. Deconstructing the value of each line item and creating an explicit quid pro quo would likely cross legal or ethical lines.

      2.) Client reference agreements always have a "rip cord" clause that allow the client to unilaterally suspend the reference agreement if they ever become unhappy with the product or service they purchased. This actually provides the client significant leverage to correct problems after contract signature, so it acts in the client's favor. Besides, the vendor cannot regulate or control what the client says. If a client is having a bad experience, it would be stupid to hold them to the agreement and put them in front of a trade journalist writing an article about us.

      Delete
    10. Payola in Encinitas city hall. Finance director Nash and Communications officer Medford should resign.

      Delete
    11. 11:53 AM

      It was definitely different for me in the public sector. There were none of those kinds of discussions or clauses. The private sector has more latitude.

      12:24 PM

      "Payola in Encinitas city hall". Sorry, but you don't know what you're talking about. There is nothing wrong with employees talking about their experience with a product/service. Are these "case studies" produced by the marketing department? I'm sure they are but this is different then getting an employee to formally endorse a product, although it may appear to have the same effect. It's just for some reason those negative "case study" experiences never seem to be written up. Go figure.

      Delete
    12. 9:26 is correct.

      The professor posted this, apparently not understanding the difference between a news story and a software vendor press release.

      Delete
  7. Bottom line is there is sometime rotten in city hall. Nash and Medford's prohibited endorsements stink.

    ReplyDelete
  8. Why does Encinitas need a "Communications Director"? Trim government - dump this position and keep on reviewing all the others. Over bloated Administration in this small city is running it deeper and deeper into debt.

    ReplyDelete
    Replies
    1. Good question. The obvious answer is:

      We have about 10 full-time, unelected, self-appointed, volunteer ombudspersons who amplify and propogate misinformation here and elsewhere in a co-ordinated effort to make the city look bad at every turn.

      --FP.

      Delete
    2. FP- the city doesn't need help to look bad, they are bad. What rock do you live under??

      Delete
  9. This is an example of unprofessionalism:

    "Nash, for example, has observed a reduction in requests for information about finances."

    Over what period has he observed a reduction of requests for information? Correlation is not causation. When records are requested they are often incomplete or wrong.

    How is the "pretty penny" that they have saved?

    My accounting teacher used to say that "numbers don't lie, people do."

    Where are the numbers to back up this claim?

    ReplyDelete
  10. Payola in Encinitas city hall. Finance director Nash and Communications officer Medford should resign.

    ReplyDelete