Sunday, May 15, 2016

Library-buying Mizels' ties to failed S&L, shady land deals

Earlier this year, the Mizel family offered $2 million to buy naming rights to the Encinitas Library.  Before locals knew what was going on, the city council had agreed in principle and directed staff to negotiate a memorandum on the terms.  The majority of the $2 million would go to the city's general fund, where it would be relatively insignificant compared to the city's vast road maintenance backlog and unfunded pensions.

If we're going to be checking out books from the Mizel Library from now on, it behooves us to learn about the people we are honoring.

Victoria Advocate, March 11, 1990:
Deals by Silverado Borrowers Outlined

HOUSTON (AP) - Four major borrowers of a failed Colorado thrift also made deals with individuals or savings and loans in Texas that did business with organized crime figures or CIA operatives, the Houston Post reported.

In a story in Sunday's editions, the Post said the borrowers at Denver's Silverado Savings and loan had dealings, though sometimes indirectly, with Robert L. Corson, a Houston developer who is the subject of two federal investigations and allegedly had connections to the CIA and Herman K. Beebe Sr.

Beebe, who was convicted in 1968 of bank fraud, had connections to 12 failed Texas savings and loans and is alleged to have ties to New Orleans mafia boss Carlos Marcello.

The December 1988 collapse of Silverado, now operating as part of Columbia Savings, the largest thrift in Colorado, is expected to cost taxpayers up to $1 billion

The borrowers -- Denver developer Bill L. Walters, Denver homebuilder Larry Mizel, Mizel's company M.D.C. Holdings and Denver developer Kenneth M. Good -- had many loans and ventures with Silverado, the Post reported.

[...]

Silverado, an M.D.C. subsidiary, and a New Mexico company that was a business partner with Corson were involved in a questionable deed transaction involving 300 Harris County homesites in 1996, the Post reported.  The M.D.C. subsidiary, Wood Bros. Homes, sold the sites to Silverado, which then sold them to Bellamah Community Development, a New Mexico-based joint venture.

No deeds of trust were ever recorded of the deals.  The brother of Larry Mizel, Steven, last year joined the board of Houston-based General Homes, which has done more than $100 million in land deals with Corson.  Steve Mizel was on the board of M.D.C. from 1985 until 1988, the Post reported.

Corson is the subject of two federal investigations involving failed savings and loans, including Vision Banc Savings of Kingsville, which went bankrupt four months after he bought it in 1986.
Corson died supposedly "of natural causes at 45" but more obviously of a drug overdose while a target of a federal investigations.  His mother, Billie Jean Garman, was sentenced to 6 years in prison after spending 10 years on the run.

More at the LA Times.
The documents show that the committee approved Silverado-Elektra's role as a phony buyer of some Houston residential lots from MDC Holdings Inc., a Denver home builder, the newspaper reported.

The SEC documents indicated that the Silverado committee knew Silverado-Elektra was to be a straw buyer. Straw buyers typically are employed to disguise property ownership and do not use their own money.

"During the course of its internal review, representatives of the party (Silverado-Elektra) that purchased the residential lots from MDC stated that they would not have purchased the lots had they not felt assured of selling them to the third party," the documents said.

The Post said previous testimony by then-MDC President David Mandarich showed the home builder wanted to sell several hundred lots in the depressed Houston market to Bellamah Homes of New Mexico. MDC also wanted to buy lots near Castle Rock from a Bellamah Homes subsidiary.

Because MDC is a publicly traded company, federal securities laws prevent it from exchanging properties with Bellamah and then recording a profit on the sale of the Houston lots.

The SEC documents indicate that MDC asked Silverado-Elektra to buy the Houston lots for $3.7 million. The same day, MDC contracted to buy the Castle Rock land from Bellamah Homes, and three days later, Silverado-Elektra sold the Houston lots to Bellamah homes, the documents showed.

The SEC disciplined MDC in September, 1989, for its handling of eight real estate transactions between 1985 and 1987, including employing Silverado-Elektra as a straw buyer and booking profits on the Houston sale. MDC neither admitted nor denied guilt but agreed to make changes in some of its accounting practices.
And still more including MDC's ties to Charles Keating, Neil Bush, and Michael Milken in the New York Times bestseller Inside Job: the Looting of America's Savings and Loans.

Wonder if any of the council members knew any of this when they jumped at the chance to rename the Encinitas Library.  And the Planning Commission, when they voted to allow the Mizels to erect two monuments to themselves on city trails.

Once the precedent for selling naming rights in Encinitas has been set, maybe we can go for some serious money. Do you think Angelo Mozilo or Franklin Raines might be interested in paying $10 million to rename Moonlight Beach or Swami's?

87 comments:

  1. The nonprofit Mizel foundation is controlled by Steven Mizel's brother Larry. The money isn't coming from Steven, it is from Larry Mizel of MDC holdings. What a tangled spider web.

    ReplyDelete
  2. And Gaspar wants to end corruption.

    ReplyDelete
    Replies
    1. GASpar is part of the corruption.

      Delete
    2. She is a phony - she sold out from the beginning. Her campaign posters are pure hypocrisy.

      Delete
  3. City of Encinitas representatives,

    Can someone please provide me with a copy of the Mizel Family Foundation financial documents that you have likely reviewed, I cannot find them anywhere online?

    ReplyDelete
  4. They can have the Bernie Madoff wing too! Call it the Ponzi Palace!

    ReplyDelete
  5. Has ANYONE reviewed the Mizel Family Foundation documents? Where are they? Why aren't they being scrutinized by leadership and the public?! What else is hiding behind these completely nontransparent Mizel brothers?

    ReplyDelete
    Replies
    1. There's not likely to be much interesting in the foundation documents.

      Family foundations are just investment pools for rich people. They donate appreciated stock to their own foundation, which gives them the double tax benefit of avoiding capital gains tax and getting a deduction for the full value.

      Then the foundation is supposed to use the money only for public good, not private interests. But apparently buying naming rights for yourself is OK.

      Delete
  6. Steve Mizel is a big part of MDC as he is one of the officers of the company.

    Our city council should be questioning their motives for renaming OUR library. This smacks of shady dealings, but the council is not smart enough to know the difference. They have been handed a dangling carrot and took the bait.

    C'mon council. Where are your smarts?

    ReplyDelete
  7. How fitting, druggies / transients using the library and crooks putting their name on it.

    ReplyDelete
  8. Guidestar, you should be able to find their 990 there.

    ReplyDelete
    Replies
    1. No Form 990's found on Mizels after looking online.

      Delete
    2. No Form 990's found on Mizels after looking online.

      Delete
  9. This sounds like a really bad idea. I think the council and their attorney know better and they just don't care care. How insulting to our intelligence. Have some integrity for a change Encinitas CC.

    ReplyDelete
  10. perfect comment. What a waste of taxpayer money!!!

    The Library sucks!!

    ReplyDelete
    Replies
    1. The library sucks. Really? Why not try swallowing your tongue?

      Delete
  11. You should see the huge rip off of all the taxpayer with the latest stock market crash/ zero interest rate ponzi scheme.

    Complete redistribution of wealth. Top one percent- get more. Stupid middle class become poor. Not stupid middle class pay want more for taxes and have a county, state, and local goverment way overextended on DEBT.

    Most people are way to overblown with their daily fiasco to ever think about how close the USA financial system is too the brink of collapse.

    I hope I'm wrong but I predict a full collapse by 2025 (9 years or less) with the greenback and all US Stocks being less then 10% of today current value.

    ReplyDelete
    Replies
    1. Marc Faber called.

      Says you may be too pessimistic.

      And that you should take a basic English class at Mira Costa.

      Delete
    2. Your Mom called and said you have always been a fool...,

      Everyone knows, a fool and his money are soon parted.

      Delete
    3. I'm with you 6;15, you are right on the fiat currency!!!

      Delete
    4. Splain to us again how the top 1% get more during a 90% market crash?

      Delete
    5. Less "then 10%" then what?
      Dude, call Verizon and beg them to cut the cable, you're embarrassing yourself.

      Delete
  12. Believe the point is residents should have a voice in whether we take the money in exchange for renaming the library.

    That's where the pressure on the Council should be: letting us vote. As long as the check doesn't bounce, the shady Mizel background is a distraction from demanding a vote.

    ReplyDelete
  13. I personally don't care what the library is called. Makes no difference to me. More money for the library sounds good though. And we voted for the city council members and they handle the day to day stuff like library names, why would we have expensive public votes for that?

    ReplyDelete
    Replies
    1. I don't care what that library/homeless shelter is called either . Take the 2 million . Then the library would only be an $18 million mistake .

      Delete
    2. No wonder these city officials keep getting re-elected with thinking like this.

      Delete
    3. Not expensive: slam it on the November ballot. And are we SURE the money will all go to the library? Our city knows only too well how to shell game budget line items.

      11:22 sounds like Lisa: "You elected us, we know best, now go away." We elected the council to represent us, not go rogue and only pretend to represent us.

      Delete
    4. 2:23 PM
      The $375,000 goes into the general fund which pays for anything. The MAYOR'S PRAYER BREAKFAST CATERING cost $3200 which was paid from the general fund. That's where the Mizel $375,000 money will go.

      Delete
    5. The Mayor's WHAT??!!!?

      Delete
    6. Oh yes, 12:32. Do remember what country we live in. And of course "prayer" is code for jesus.

      Delete
  14. 12:05 PM
    The Mizel offer is $375,000 per year for four years for a total of $1.5 million. Mizel could pay $375,000 for one year to have his wife's name on the library, then decide not to pay for the next year.

    The other $500,000 goes to the nonprofit Friends of the Library supposedly at $125,000 a year for four years unless he only wants to pay for one year.

    ReplyDelete
  15. Howzabout Muzel pays for 100% affordable housing over by sunshine gardens? That would be a great contribution to humanity, our housing element allocation, and Lisa's humility. How would she ever balance providing hyper high density with her NIMBY tendencies?

    ReplyDelete
    Replies
    1. Oh dear, our poor princess sure stepped in it this time by bringing this before the council and then recusing herself.

      Bad timing for an election year campaign it is. Her handlers left her out to dry with this move. Too bad she didn't do her homework before bringing this down on us all.

      That council saw fit to try to sneak this by us behind closed doors, shows what a few baubles jangled before their eyes can accomplish and how cheaply they can be bought off.

      I would hope that this Wednesday's council meeting somebody up there on the dais will have the courage to pull this back from the brink and rethink their support for such an undeserving honorarium.

      The Encinitas Library is OURS and deserves to remain the Encinitas Library. The Mizels could have offered the $20 million it cost when it was being built and most needed, but to even consider this paltry sum now to change the name permanently or even for a limited time frame will not happen if the residents have anything to say about it.

      The mayors' lack of judgment in letting herself be played like this, calls into question her depth. If she had bothered to do some research, she could have saved herself a lot of headaches. Her independence appears to be nonexistent, if she ever had any.

      She can't hide from it now and many eyes will be on her Wednesday night looking for a retraction. I wonder if she has it in her. We can be a forgiving lot when we see some genuine regret expressed. THis coud be a seminal campaign moment if she wants to prevail, if that is even still possible.

      Delete
    2. Wonder if anyone will show up and protest. As much as we yell on EU, this is not where impressions are made.

      Delete
    3. I say raise the offer to $5 million and call every room in the library Mizel. Name it the Mizel homeless wifi station.

      pffff.... that was a huge waste of tax money. $20 million for the homeless to have nice ocean-views as they check their email all day while spreading their diseases. Nice.

      Delete
    4. The Mizel name is already on the library. Go inside and look at people in the gold circle, or whatever the big money contributor area is called.

      Delete
    5. The Pat Mizel name will be in 5 feet tall letters on the outside of the library. A nice bronze statue of Steven, Larry, and their wives would be a nice addition.

      Delete
  16. Looking at Gaspar's campaign donations, one would think they'd landed in a builders' convention. Her mentor, $tock$, threw in some dough also. End county corruption??? How about ending city corruption first!

    ReplyDelete
    Replies
    1. 10:04 What is the website to view this information?

      Delete
    2. Did anyone else get that ridiculously oversized Gaspar mailer today? Talk about stupid. In fact, the whole neighborhood's talking about how stupid. Guess in her world, bigger is better.

      Delete
    3. the tighter the sweater.....

      Delete
    4. 10:22 PM Go to the City of Encinitas website and look under the category "Search for Public Records", then then go to the link for "campaign disclosures". There you'll see the source of her money, which really represents her true special interest oriented political agenda.

      Delete
    5. 5:37 AM Definitely trying to exploit the looks, which need a lot of camera angle. Call it trick photography.

      Delete
  17. Steven Mizel contributed $750 to Gaspar's supervisor campaign.

    ReplyDelete
    Replies
    1. Good intel but from which one of his ten (10) Mizel Family slush funds? These deceptive people! I here that he bought his house with a contrived LLC that is now defunct but still hiding his name from tax records...these sneeky folks...always deceiving...always bilking..always wanting to rule over your towns and cities.

      Delete
  18. plus all the other unidentifiable contributions. Doesn't matter I voted for Gaspar already.... she is going to win the seat for sure.

    She's up against a liberal gay egonaut who got ratted out for his evil ways in his staffing kingdom, and an Arab from Escondido..... lets just say, I think she has a pretty good shot at this.

    ReplyDelete
    Replies
    1. "a liberal gay egonaut who got ratted out for his evil ways in his staffing kingdom" so true, thank you!!!! This man defines EVERYTHING that is wrong with our country, state, county and city.

      Delete
  19. My vote is for Joe Camel.. He is a bit less crooked than the others and doesn't have that Matel plastic sheen of the Gasbag.. Roberts is pathetic.

    ReplyDelete
  20. June 7 is just a primary. The top 2 proceed to the main event in November.

    Abed has to be unhappy that Trump locked up the nomination early. A large turnout of uninformed voters voting the party line would have been good for him.

    As it stands, only relatively engaged and informed people will turn out to vote.

    ReplyDelete
  21. Gaspar has no shot at winning the Supe slot. She will come in 3rd and Abed will take on Roberts. Abed has the endorsement of the Repugnican party, and he and Roberts have signs all over the county. Gaspar has 3-4 signs in Encinitas with her smiling face and a promise to end corruption. Takes one to know one, apparently...

    ReplyDelete
  22. yup..

    http://samforsupervisor.com/endorsements/

    ReplyDelete
  23. I'm voting for Judge Smails, he's no slouch.

    ReplyDelete
  24. Just say "neigh" to corruption.

    Vote for the dark horse--the current Mare of Encinitas--a real whinny-er.

    She's leading in the Gallop poll.

    Take it from the horse's mouth, she'll win by a nose.

    ReplyDelete
    Replies
    1. More like the mare's gone lame....

      Delete
    2. With those shoes, who wouldn't?

      Delete
  25. So Del Mar City Council are spineless wimps just like Encinitas pack of worthless chatty boxes. Look their City Council comments and then look at the Retired Police Officers comments under the article. He told them exactly how to implement a solution to the problem.

    http://www.thecoastnews.com/2016/05/11/city-finds-no-way-to-muffle-motorcycle-noise/

    ReplyDelete
  26. I have written an article relevant to motorcycle noise enforcement if you’re interested: The “truth” about Loud Motorcycles the Police can’t or won’t tell you: https://rickeyholtsclaw.wordpress.com/2016/03/10/the-truth-about-loud-motorcycles-the-police-wont-or-cant-tell-you/

    ReplyDelete
    Replies
    1. Reload with a link that can be opened directly.

      Delete
    2. Interesting article.

      I think the most effective way to combat illegal mufflers is to target businesses. It may take a change in the law, but it would be more effective than trying to ticket thousands of riders. It would also take a long time to work, because there are already so many illegal vehicles out there.

      Make the sale of factory built parts that are not certified illegal. Period. Make the installation of an illegal system on a street registered vehicle illegal. Make the penalties such that a parts shop, fab shop, garage or tuner would lose their business if they are caught, and they will stop installing these systems. If you can't buy a factory built system, and no one will install one for you, then your only option would be to make your own in your garage at home. Few have the ability or tools to do that.

      Delete
    3. 7:17 AM Bottom line - problem continues, as your solution won't work. It would take a law and look how "efficient" our legislators are...

      Delete
    4. Interesting viewpoint, but reading between the lines I'm not sure this article is really about loud aftermarket motorcycle noise. I get the feeling that it's more about motorcycle culture. I live off Lone Jack - you know - that Formula 1 test track on the north east side of Encinitas? Sure, we get a few loud motorcycles - mostly HD's - but they pale in comparison the the classic american muscle cars, the Ferrari's and Porsche's and other exotics that refuse tho shift into 3rd gear until they hit 80 mph. As a group of residents we regularly call the sheriff to complain about excessive speed and excessive noise, and sometimes they come out but most times they don't. But probable cause? Someone spends 250K on a fast car, it's as loud or louder than a bike, and you think you have probable cause to pull it over? Good luck!
      Anyone catch the latest episode of Wallandar on PBS? Kind of on point - don't 'cha think?

      - The Sculpin

      Delete
    5. For me, I would never complain about sound from an exotic at wide open throttle. That's music, not noise. As long as they aren't driving in a dangerous manner or in a busy area.

      Nothing like a Maranello V10 at full rip.

      The thing about expensive super cars is that they can cruise quietly. The exhaust is designed to be tame when the driver isn't stabbing the throttle.

      I'm more annoyed by motorcycles and dumb little Subarus with a fart can that drones away at free way cruise or gentle acceleration.

      That's some annoying, selfish, attention-starved, insecure stuff going on. While we're on it, how about these people who think everyone wants to hear their type of music? Driving around thumping with the windows open. Don't be that guy or girl (but mostly guys). Total tool.

      Delete
    6. 7:17,

      What the writer proposes won't work either. He proposes that courts assume a bike is out of compliance by the fact that it doesn't have the factory exhaust system.

      Problem is, you can't assume that.

      People replace exhaust systems for many reasons, of which sound is only one. Systems wear out, they break, and there are aesthetic reasons people change out exhaust systems.

      Besides, there is no support in the law for such an assumption. So you're talking about needing a law passed either way, because the current law is basically unenforceable.

      Delete
    7. Another law making it illegal to manufactured pipes will do nothing. People just take out the inner contents of their existing muffler or cut off and put on a straight pipe. It needs to come from sample enforcement. It's very easy and efficient Jen for us. Just need to get directions to the city police captain to make it happen .

      Delete
    8. Siri did not work well . I will try again later

      Delete
    9. Another law making it illegal to manufactured pipes will do nothing. The noise makers just take out the inner contents of their existing muffler or cut it off and put on a straight pipe. It needs to come from active enforcement. It's very easy and efficient to address. The City Manager just needs to give directions to the City's sheriff Captain to make it happen. The City Council and City Manager of Encinitas should partner with Solana Beach and Del Mar to put an end to this decimation of peace and prosperity along the coast.

      Do we really want 100 DB cigarette butt throwing low lifes screaming through our beach town setting off car alarms? The lowlife attention seekers are bad for peace, quality of life, business, property values, health, and the environment. Whats the downside to addressing this issue? Maybe the police have to issue a few tickets to get the word out that its illegal? Big Deal.

      I never see cops in Encinitas doing any enforcement. Please explain why this isn't easy to address?

      Delete
    10. 6:08,

      It isn't easy to address because the law says bikes cannot emit more than 80 dB of sound pressure. A cop can't subjectively judge "too loud" and have a ticket stand up in court.

      He has to use an instrument. The instrument is expensive, and has to be regularly calibrated by a trained technician. The officer has to be trained and certified in how to conduct the test. Also sound pressure levels are additive with multiple sources of sound (think stadium with 60K screaming fans). So the testing is complicated by ambient noise from other vehicles, trains, helicopters, etc.

      In other words, it's expensive and there are so many ways to challenge the ticket, that the law is basically unenforceable on a practical level.

      Delete
    11. No. thats BS. the reality is the officer can pull the perp over bast on common sense ear level and then proceed from there.


      this is a simple matter to address if the lazy ass cops stop doing nothing and start issuing tickets.

      Lets address this stipple solution.

      Delete
    12. Defendant: "This ticket is invalid"

      Judge: "Officer, how did you determine that the defendant's motorcycle was above the statutory noise limit?"

      Officer: "common sense ear level"

      Judge: "case dismissed"

      Delete
  27. TV ads citing Robert's indiscretions while in office are now airing - it just says to vote NO on Roberts. Must be from the Republican Central Committee. Gaspuck must be sighing relief that it didn't specify an alternate.

    ReplyDelete
  28. I already voted for Gaspar in my mail in ballot. She would be good for Encinitas. She has good common sense. We just have to watch her developer shill stuff.....

    ReplyDelete
    Replies
    1. 6:55 AM Some people are easily impressed. Common sense?? More like minimal theatric abilities.

      Delete
    2. "Just have to watch...?" As if, once elected, she cares what you think, 6:55.

      Delete
  29. Some of you need to stop attacks Gasbag on her looks and attack her record. She claims in her flyer that she repaired the roads ... Where?? The roads in Encinitas SUCK!!! Santa Fe drive has been a HOT MESS for nearly 2 YEARS!!! Glen Arbor is one of the worst roads in the county...
    Gasbag hasn't done shit for this city.

    ReplyDelete
    Replies
    1. Indeed.

      The council deliberately underfunded road maintenance recommended by its own consultant.

      And the council spends more on pensions for city workers' early retirement than it does on road maintenance.

      Delete
  30. Dave Roberts purposefully dresses like a staunch conservative to deceive those that rely on photos with descriptions for their only source of 'news gathering' hence his tax-payer funded baseball card propaganda scheme. In fact Dave Roberts is sick power hungry individaul who instead of raising his six adopted children with his gay partner is out and away from 'his kids' lives leaving one gay man to raise 6 children? Really folks? This monster needs to remove himself from making decisions for men, women, children and especially families. Good riddance to Dave Roberts and his sodomy sexual assault on office staff.

    ReplyDelete
    Replies
    1. GASbag leaves her children to be tended to by someone else. What's the difference? She hops in bed with developers. What's the difference?
      She dresses provocatively and thrashes around in heels. What's the difference? Do we really want someone like her to represent us? I know I don't.

      Delete
    2. 3:37 PM It's always sex, sex, sex, with you closet queens.

      Delete
    3. 8:22 wins the internet today.

      Delete
  31. Oh...what's this...ANOTHER Steve & Patricia Mizel Library in an illegal racist settlement in the occupied territories of Palestine...hmmm...darn it that facts can he hard to see and swallow...
    https://youtu.be/bYJZS0n6LVk

    ReplyDelete
    Replies
    1. Interesting. One has to wonder why they want their name on several libraries.

      Delete
    2. OMG 3:46, do you have a point to make aside from your questionable opinions on Palestinian-Israeli relationships? Seriously, you sound like someone who belongs on a watch list.

      Delete
  32. Wow, what's a "watch list?" Is that what the Anti Defamation League creates on innocent American citizens? Only a Jew would recommend and be in favor of violating the privacy rights of Americans you want to have an open discussion about anti-Christian Jews.
    http://irmep.org/ADLespionage.asp

    WC Varones is definitely a fan or he wouldn't be deleting EVERYTHING that mentions juice.

    ReplyDelete
  33. ADL creates illegal and unconstitutional "watch groups" on innoccent Americans, Edward Snowden helped all of us understand the deceit involved. BTW who sponored the "Refugee Resettlement luncheon at the Leeechtag Foundation that all three Cultural Marxists city council members atteneded?
    http://irmep.org/ADLespionage.asp

    ReplyDelete
  34. Maybe Larry Flint or Hugh Heffner would like their name on our new multi million dollar lifeguard station. Speaking of which, why is it is necessary to have a Sheriff dept, inside a lifeguard station? Does any other beach in San Diego have this? Don't most people go to the beach here to relax and not be hounded by a bunch of rogue deputies?

    ReplyDelete