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Wednesday, November 30, 2005

Excerpt: Al Rosen

Further to my post yesterday, here is a portion of a conversation I had an hour ago with Al Rosen, forensic auditor. In it, he stresses why there should be an investigation into trading on income trusts just prior to Finance Minister Ralph Goodale's announcement last Wednesday. This is the election issue for some:

Al Rosen: Somebody can look at this data and you could be on a securities commission and just say 'ho-hum it's just another day.' Or you can look at it and say, 'hey, just a minute, there's something happening here.' And so my general thrust has been, this cries out for an investigation, especially when we're are going to have an election and all that type of thing. Here I am looking at it and saying; what does my gut tell me? versus, what can I prove in court? Well, I can't prove anything in court right now because I don't know who the actual buyers were behind the brokerage trades. When you look at it, different stocks seem to have different brokers doing the trading in them. So when you add it all up, I don't think there is any reason why you can't have an investigation on this because it is so crucial after we've had the Adscam stuff and there's an election coming. And the emails that I'm getting in from people are saying, 'Look, before I vote I would like to know.'

People want to know, especially on the voting basis. And if there is nothing there, then great, there's nothing there. But if there is something there, then where did it occur? Did it occur through the advisory group that was consulted? There is the typical advice that somebody on the advisory group would leak something somewhere else? Or was it one of the government people or one of the politicians? Like, where is it? I just didn't see it as a story that had a clear ending, so when the media started to phone me about it, I said what I said.

Kevin Steel: And you are standing by it?

AR: There’s nothing so far that contradicts it. What's come out at this point is the usual, ‘Well, some people were just good, some people are talented.’ ‘That happens around any announcement.’ Those are pretty tired excuses. They may turn out to be okay. But at this point I think the weight is crying for an investigation...

...It's the principle of, are the markets safe or not? So, if this is just one where people were caught off base, surely it is happening all over the place. Either we have respectably trading markets or we don't.

UPDATE 2:08 pm PST: Just caught this on nealnews: CTV: RCMP reviewing complaint on income trusts

Posted by Kevin Steel on November 30, 2005 in Canadian Politics | Permalink

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» A Bad Day To Be Ralph Goodale from small dead animals
CTV reports that the RCMP are going to investigate the now famous "Wednesday spike" in income trust trading. I received this privately last night from a reader; I work in one of the discount brokerage houses, so I think I... [Read More]

Tracked on 2005-11-30 4:14:04 PM

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UPDATE: On November 18th of this year Ralph Goodale stated publicly that he expected to make a decision about income trusts in January of 2006. Five days later his friends on bay street were franticly buying income trust stock in advance of his announcement the next day. The PUBLIC was lead to believe that a decision was months away but several special friends apparently knew otherwise. Mr. Goodale claims to have made his intentions known in advance to the general public. Mr. Goodale, this is the only public article I can see where you address this issue and you clearly state that a decision can be expected next year...

http://www.cbc.ca/story/business/national/2005/11/18/trusts-051118.html

Posted by: ferrethouse | 2005-11-30 2:50:29 PM


On Friday Mr. Goodale made this statement...

Goodale denied Friday that there had been any leak of his announcement. "We are always very careful and very discreet," he told reporters. "There was no leak."

He later claimed that the information was made generally available to the public in advance of his announcement. Which is it Mr. Goodale? Are you discreet or were your actions obvious to everyone. Your statements conflict.

Posted by: ferrethouse | 2005-11-30 2:53:41 PM


There's quite a scuffle over this. The CPC are behaving well- and the 'images' of Harper, surrounded by a group of people (young, middle, male, female), expressing his surprise and asking for an investigation - are very good. Layton is also asking for answers. The Liberals are on the defensive.

It's important in this campaign, for the Liberals to be kept on the defensive. And - for the ideology of the Liberals to be shown as one full generation - out of date.

Posted by: ET | 2005-11-30 3:20:12 PM


Please.....the idea that any of the Ottawa Librano's would hesitate for a moment to drop a dime for their Bay Street buddies is laughable!

Where is the evidence of ANY ethical concern for any principle or law?

The SOP for this bunch of clowns is "Remember...Its not what you did that matters! Its what you got caught doing!"
This quote from a fellow who used to be my boss about 30 years ago! Coincidentally...he happened to also be a LIberal Organizer and became an adviser to Sharon Carstairs. Remember the school teacher who sounded like Minnie Mouse! She became PM of MB before the party got drop kicked out of existence in MB. Now a ward of the state ( LIberal Senator )........but thats a whole n'uther story.


Any way.....I hope all the facts come out on this story ( leaking financial policy to friends ).

Posted by: PGP | 2005-11-30 6:58:47 PM


Gawd it just never ends....thuis has to be the only federal regime that went to the polls with investigations still in process.

Posted by: WLMackenzie redux | 2005-12-01 7:53:27 PM


Caporicci, Redwitz, and next?

Audit Firms from Orange County seeking Clients in San Diego County

Series: CORPORATE PROFILES (with web-site references)
http://la.indymedia.org/news/2006/05/158598.php


Dear Colleague:

We have already noted the activities of the CPA firm of Caporicci & Larson, http://www.c-lcpa.com (although the “c-lcpa” web-site is currently frozen on just one screen), of Costa Mesa, in Orange County, which in 2003 had taken over the San Diego CPA firm of Calderon, Jaham & Osborn, and therewith the audit contract with the City of San Diego. Caporicci & Larson were later sued for damages in 2005 by the City of San Diego for $100 million as co-defendants with other professional firms. See
http://www.signonsandiego.com/news/metro/pension/20051201-1336-bonds.html . Caporicci settled with the City of San Diego in 2006 for $900,000 and Calderon settled for $750,000, according to “The Daily Transcript” of San Diego of July 26, 2006, Source Code 20060725tlb. Also http://www.signonsandiego.com/news/metro/20060726-9999-2m26settle.html .

Now we observe the activities of another CPA firm from Orange County, namely “Robert R. Redwitz & Co., An Accounting and Consulting Corporation”, http://www.redwitz.com , at 38 Discovery #250 in Irvine, which in 2005 had taken over the San Diego CPA firm of Coradino, Hickey & Hanson, and therewith several audit contracts with several local companies. Several managers were terminated or otherwise left the firm after the acquisition.

Among the companies later (at least until recently) audited by Redwitz some broker/dealer firms, like Stolper & Co., Inc., http://www.stolperco.com , Laffer Advisors Incorporated, and a Delaware LLC http://kepler.ss.ca.gov/corpdata/ShowLpllcAllList?QueryLpllcNumber=200529910193 , Granite Financial Group, LLC, http://www.gfgsd.com , list Redwitz as their independent public accountants on the Securities and Exchange Commission Forms X-17 A-5 Part III/Financial and Operational Combined Uniform (FOCUS) reports as required under SEC Rule 17a-5 on file with the National Association of Securities Dealers, Inc., http://www.nasd.com .

Receiver Charles G. LaBella has investigated and made formal claims against one of these companies, Granite Financial Group, for some $7 million http://www.gmmreceiver.com . Mr. LaBella is in charge of recovering some of the alleged losses that Global Money Management/LF Global have sustained as a result of having placed some of their trades/investments with Granite Financial Group.

The weekly magazine San Diego Reader on October 20, 2005, published an article by Don Bauder which stated: ”… An investment banking firm, Granite Financial Group, ‘maintained its headquarters in the same office suite’ with Global Management and LF Global on El Camino Real in Carmel Valley, says the receiver. The hedge fund did some of its business through Granite. Over four years, $7.08 million went into the Global account at Granite, generating a negative return of 90 percent, says the receiver …”.

The article continues: “… Granite also managed accounts for Friedman's family, and there is ‘some evidence’ that Friedman at day's end gave winning trades to his family and the others to Global, according to the report. This practice, called ‘cherry-picking’ on Wall Street, has led to fraud convictions in other cases. The receiver has entered claims against Granite …” http://www.sdreader.com/php/cityshow.php?id=C102005 .

At least until recently, Redwitz listed “Mayer Roofing http://www.mayerroofing.com “ among their “San Diego” clients on their web-site at http://www.redwitz.com/clients/index.html, an Escondido construction company, Mayer Roofing: the daily newspaper San Diego Union-Tribune on March 10, 2006, reports that “… A dozen officials from an Escondido-based roofing company have been charged in what prosecutors said was a fraudulent workers’ compensation scheme worth more than $4.5 million over three years …”.

The article continues: “… The officials of Mayer Roofing Company are accused of falsifying employee timecards to allow the company to pay lower insurance premiums. A San Diego grand jury indicted the group on February 9, 2006, on felony charges of conspiracy and insurance fraud …”, per Dana Littlefield of the Union-Tribune. http://www.signonsandiego.com/news/northcounty/20060310-9999-1mi10roofing.html

The article adds that “… If convicted, they face up to 17 years in prison and fines of up to $9 million …”, and continues: “… District Attorney Bonnie Dumanis said that company officials were ‘dummying up’ timecards so that low-wage workers would qualify for premium rates typically reserved for workers who earn more that $20 an hour …”, adding “… It’s a shell game, really …”.

Also the San Diego newspaper The Daily Transcript on March 10, 2006 (and the SanDiegoSource on March 9, 2006) reports about the “Mayer Roofing Co.” indictments in an article by Doug Sherwin http://www.sddt.com/News/article.cfm?SourceCode=20060309czj .

Regarding Mayer Roofing see also NBC San Diego at http://www.nbcsandiego.com/money/7861715/detail.html and http://www.redwitz.com under “Clients”. Actually, two Redwitz employees, namely David “Dave” Hickey and Douglas “Doug” Clevenger, according to the Redwitz employee list at http://www.redwitz.com/contact/names.html , even hold a title of Certified Construction Industry Financial Professional as per http://www.iccfp.org/cert/ccfp_holders/index.asp .

“Robert R. Redwitz & Co.” is not new to clients involved in heavy litigation: among their clients at http://www.redwitz.com/clients/index.html they listed, at least until recently, “The Roman Catholic Diocese of Orange County http://www.rcbo.org “, regarding which the Orange County Weekly reported: “… An internal church document obtained by the Orange County Weekly shows the Orange Diocese accepted the $100 million settlement not to, as Brown told the faithful, spare victims from ‘years of emotionally difficult litigation’, but because Church officials knew just a minute before a civil court would ‘return devastating jury verdicts against the Diocese’ …" and “… the astonishing revelation appears in a confidential memo authored by Father Michael Heher and distributed to Diocesan priests, titled ‘How the Diocese of Orange Came to Settle the Sexual Abuse Civil Claims’ …” which “… retells key moments during the past two years it took for the Church officials to settle all 90 claims against the Orange See …”, at http://www.ocweekly.com/news/ex-cathedra/the-all-spin-zone/15106/ .

The Redwitz catholic connection included also, at least until recently, the “Santa Margarita Catholic High School” http://www.smhs.org , according to the Redwitz web-site list of clients, at http://www.redwitz.com/clients/index.html . “Santa Margarita” is owned and operated by the Diocese of Orange County, per http://www.smhs.org . “Randy Redwitz” at “[email protected]” and “Mary Redwitz” at “[email protected]” were listed, at least until recently, among the staff of “Santa Margarita”, per the staff list at http://www.smhs.org/apps/staff/ .

Regarding the players at Redwitz http://www.redwitz.com , Robert R. Redwitz (a. k. a. “Randy” Redwitz, from the middle name Randolph), was listed, at least until recently, as principal/CFO of “The Diamond Group, LLC”, http://www.thediamondgroup.net , (a “limited liability company” that has been “… involved in more that $500 million tax exempt financing transactions …”, according to its own web-site), and at the same time as a principal of “Robert R. Redwitz & Co., An Accounting and Consulting Corporation” (incorporated in 1999, per http://kepler.ss.ca.gov/list.html under “redwitz”, where another corporation, “Robert R. Redwitz, An Accountancy Corporation” incorporated in 1977 is listed as “suspended”), and as a “Partner” of a corporation, “GDR Group, Inc.”, a technology subsidiary with addresses at 38 Discovery #250 and 220 Technology Drive #210 in Irvine http://www.gdrgroup.com/about/team.html http://www.gdrmusic.com . A “limited liability company” with the same name, “GDR Group, LLC”, is also listed at 220 Technology Drive #210 in Irvine
http://kepler.ss.ca.gov/corpdata/ShowLpllcAllList?QueryLpllcNumber=199904010020 .

A Redwitz employee, Jennifer Riva-Kirk, was listed, at least until recently, as “Partner” of a corporation, “Redwitz Wealth Management Group, Inc.”, http://www.redwitzwealth.com , (an investment advisory firm), and at the same time as a principal CPA of the Accounting / Consulting Redwitz affiliate http://www.redwitz.com/contact/names.html .

A Redwitz employee, Douglas “Doug” Clevenger, was listed, at least until recently, as “Partner” of a corporation, “Redwitz Wealth Management Group, Inc.”, http://www.redwitzwealth.com/new/redwitz/default.asp , (an investment advisory firm) and at the same time as the senior manager CPA of the Accounting / Consulting Redwitz affiliate http://www.redwitz.com/contact/names.html . Regarding Douglas “Doug” Clevenger, see also http://www.truthmagazine.com/archives/volume36/GOT036172.htm in “John Lennon and Jesus”, where apparently some citations from the Holy Bible are given.

Additional Redwitz employees listed, at least until recently, as CPAs at http://www.redwitz.com/contact/names.html are Chris Adams, Jay Siegel, Julie Incorvina, Bruce Hanson, Charles Coradino, Christopher Lamb, David Hickey, Jill Peterson, Robert Gustafson, and Dan Dielke.

In addition to Robert R. “Randy” Redwitz, the Redwitz website www.redwitz.com lists among its employees other members of the Redwitz family, namely Claudia Redwitz (not a CPA), Robbie Redwitz (not a CPA), and Jennifer Redwitz (not a CPA).

And in fine print the Redwitz Wealth web-site http://www.redwitzwealth.com/new/redwitz/default.asp states that securities are “… offered through 1st Global Capital Corporation …”.

Another investment company housed at the Redwitz address at 38 Discovery #250 in Irvine is “Redwitz Family Investments, LLC”, per http://kepler.ss.ca.gov/corpdata/ShowLpllcAllList?QueryLpllcNumber=200414210084 .

Two other investments companies were registered, at least until recently, at http://cr.ocgov.com/fbn/index.asp name search “redwitz”, “dorse”, and “greenberg”, namely:

“Lighthouse Investments, A California General Partnership”, with Robert R. Redwitz and Claudia Redwitz as owners (and Claudia Redwitz is also listed in the Redwitz web-site as “office manager” http://www.redwitz.com/contact/names.html), and

“Lighthouse Investments II, A California General Partnership”, with Robert R. Redwitz, Claudia Redwitz, Ellen Dorse and Bruce Greenberg as owners (Ellen Dorse and Bruce Greenberg were also listed in the “GDR Group, Inc.”, at least until recently, as this corporation’s “partners” together with Robert Redwitz http://www.gdrgroup.com/about/team.html).

Robert R. Redwitz appeared also, at least until recently, as Agent for Service of Process on the California Secretary of State Business Portal for a corporation, “Cumming, Redwitz & Wilson, Inc.”, listed as “suspended” at http://kepler.ss.ca.gov/corpdata/ShowAllList?QueryCorpNumber=C1417018 .

The California Board of Accountancy, http://www.dca.ca.gov/cba/lookup.html , lists several Redwitz CPA firms, namely “Robert R. Redwitz Acc Corp”, licensed in 1978 and expired/”canceled” in 1986, “Robert R. Redwitz & Co. Partnership”, licensed in 1991 and expired/”canceled” in 1994, and “Robert R. Redwitz & Co. An Acct & Consulting Corp”, licensed in 1999, with an expiration date of 2007. The status definition of “canceled”, per the California Board of Accountancy web-site, is: “… A license is canceled if not renewed within five years following its expiration date. A licensee with a canceled license may reapply as a new applicant and meet the current requirements for approval. Upon approval, a new CPA license number is issued … ”.

Through http://www.yahoo.com or http://www.google.com, via search item “robert r redwitz”, Robert R. Redwitz appeared also, at least until recently, as Acting CFO and as a Director on the web-site of LearnCom, Inc., a Delaware corporation per https://sos-res.state.de.us/tin/GINameSearch.jsp , under “entity name” insert “learncom”, also at 38 Discovery #250 in Irvine per http://www.learncom.com/about/execs.htm . The web-site specifies that Robert R. Redwitz “… was one of the founders of LearnCom’s predecessor companies - WingsNet and Video Publishing House, which in turn was an LBO from CBS Fox Video in 1983 …”, and also lists “… NASDAQ OTC/Bulletin Board - LRCM …”. Robert R..Redwitz is listed as a trading insider of shares of LearnCom, Inc., at http://biz.yahoo.com/t/51/1763.html . Another company, “VideoLearning Systems, Inc.” http://www.videolrn.com is also housed at the same Redwitz address, 38 Discovery #250 in Irvine: “VideoLearning Systems, Inc.” is a Pennsylvania corporation created on January 16, 2001, per http://www.corporations.state.pa.us/corp/soskb/Corp.asp?1886940 .

Through http://www.yahoo.com or http://www.google.com, via search item “robert r redwitz”, Robert R. Redwitz appeared also, at least until recently, as CFO on the web-site of “Cofiroute USA, LLC”, a Delaware entity per https://sos-res.state.de.us/tin/GINameSearch.jsp name search “cofiroute”, also at 38 Discovery #250 in Irvine, http://www.cofiroutegm.com/execs.shtml . The Cofiroute web-site lists as Chairman/CEO Gary Hausdorfer (“… On October 24, 2005, Cofiroute USA was awarded a new five year contract by the Orange County Transportation Authority (OCTA) to continue as the operator of the ‘91 Express Lanes’, http://www.91expresslanes.com …“).

Gary Hausdorfer, Chairman/CEO of Cofiroute USA, LLC, also appeared, at least until recently, as President of the Redwitz affiliate “The Diamond Group, LLC”, and its web-site http://www.thediamondgroup.net/principals.htm states about its President Gary Hausdorfer: "… Concurrently, with his business career, Mr. Hausdorfer also made a commitment to public service in his hometown of San Juan Capistrano. Elected to the City Council in 1978, Mr. Hausdorfer served four terms as Mayor and a total of nearly seventeen years on the City Council. As a representative of San Juan Capistrano, he also served as Chairman of the Board of Directors of the Foothill/Eastern Transportation Corridor Agency (TCA) and as a Director and Chairman of the Board of Orange County Transportation Authority (OCTA) …“.

Subsequently, the Accounting / Consulting Redwitz affiliate listed “Mission San Juan Capistrano Parish http://www.missionparish.org/ “ among its clients at http://www.redwitz.com/clients/index.html , and “Mission San Juan Capistrano” informed in a press release that they had hired accounting manager Bonnie McBean, stating “… she had served as an accounting consultant for the Mission through ‘Robert R. Redwitz & Co.’ in Irvine …”, at http://www.missionsjc.com/pdf/press/Press2004BonnieMcBean.pdf .

Per the Cofiroute web-site http://www.cofiroutegm.com , the company “Cofiroute USA, LLC” is a subsidiary of a French company, Cofiroute (Compagnie Financiere et Industrielle des Autoroutes, Societe Anonyme), which in turn is a subsidiary of another French company, Groupe Vinci, formerly called SGE (Societe Generale d’Enterprises), all on the web.
michael redwitz http://www.google.com michael redwitz http://www.yahoo.com

Another Cofiroute entity is incorporated in Delaware, namely “Cofiroute Development, Inc.”, per https://sos-res.state.de.us/tin/GINameSearch.jsp name search “cofiroute”.

Regarding Cofiroute, the Associated Press, under the title “Foreign companies buy U. S. roads, bridges”, in an article by journalist Leslie Miller on July 17, 2006, writes: “… Orange County - California - got burned by a toll road lease. The road, part of State Route 91, was built and run for $130 million by California Private Transportation Company, partly owned by France-based Cofiroute. The toll road opened in 1995. Seven years later, Orange County was looking at gridlock. But it could not build more roads because of a provision in the lease. So it bought back the lease – for $207.5 million …”. A net loss of over $77 million. Merci! And, apparently, … au revoir … !

And “The Diamond Group, LLC”, states also in its web-site http://www.thediamondgroup.net/experience.htm that "… the Diamond Group acted as facilitator in helping resolve one of the largest municipal bankruptcies in American history …”. Perhaps Orange County? And is San Diego next on the agenda?

So, audit firms from Orange County land on the shores of San Diego: what is coming next?

Regards,

Johan O. Wallen, CPA
619/295-4624
[email protected]


PLEASE FORWARD THIS E-MAIL


yahoo

history: michael redwitz

google

altavista

lycos

Posted by: johan o wallen cpa | 2006-09-16 4:44:57 PM



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