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Charlie Brown's $195 Million Credit Union Discrepancy.
As issues go, the economy is the 800 lb. gorilla in this Congressional race, and many Californians will cast their vote for the most qualified and trustworthy financial expert. Dire warnings from the Federal Reserve Chairman about the next Great Depression have a way of focusing the mind.
The election is 21 days out, and absentee voting is underway. Charlie Brown's formidable Congressional opponent Tom McClintock is respected nationwide as a brilliant economics expert and strong fiscal conservative.
Charlie has several debates with McClintock and at least a few radio interviews under his belt. The whole point of these appearances is to get to know the candidates better. Few voters would send a rank amateur in financial matters to Congress right now. The stakes have never been higher (at least not in the last seven decades). The millions of Americans who opposed the $770 billion bailout are especially wary.
And yet, 4th District Congressional candidate Charlie Brown barely mentions his sole financial credential - approximately four years of experience as Chairman of the Supervisory Committee of Sierra Central Credit Union. According to the following quote on the Charlie Brown for Congress website, he was quite the crusader...
"He’s remained true to his values. In 1996, Charlie was elected Chair of the Supervisory Committee of a local Credit Union. Responsible for fiscal oversight of an institution rife with waste and abuse, Charlie didn't turn a blind eye. He stood up for the fiscal responsibility that his members deserved."
Throughout the campaign, up until the 10/9 Bruce Maiman interview on KFBK, Charlie's website stated that it was a $5 million credit union. That night, a caller identified as Greg called in to the radio talk show to ask Charlie to explain a $195 million discrepancy. The call went like this:
(Caller) Greg: "Charlie, I want to ask you a little bit about your financial experience... We're going through a financial crisis right now, right? And I see on your website ... It says on your website it was a $5 million credit union. Well, you know what? I did some research, and it wasn't $5 million, it was $200 million... Where's your math? It was a $200 million credit union at that time, and since you left their Supervisory Committee, it has grown, it's tripled to a $600 million credit union. So that's why I'm curious as to the veracity, and the accuracy of your website."
Charlie: "Well, I guess... you know, while I was there, the assets I was aware of were $5 million, it has grown tremendously since then..."
(Interrupted by caller)
(Caller) Greg: "No, no, no that's not true. When you left it, when you left that Supervisory Committee, it was $200 million, that's a hundred and ninety-five..."
(Interrupted by host Bruce Maiman)
Bruce: "Who says... who says - I know, Greg? I know that the website says $5 million, who says it's $200 million??"
(Caller) Greg: "Pardon me?"
Bruce: "Who says it's $200 million?"
(Caller) Greg: "Those are the facts, Bruce."
Bruce: "Where are those facts?"
(Caller) Greg: "The facts are available. Charlie, what credit union was it?"
Charlie: "Uh...Sierra Central?"
(Caller) Greg: "Sierra Central Credit Union, it's based in Yuba City, I've been a member of that credit union for a long time. I know what the facts are, and Charlie, I can't understand what's on your website."
Charlie: "Uh, they were not, they did not have $200 million in assets when I left it."
(Caller) Greg: "Yes they did. And it's $600 million now, which means they tripled in growth since you left. What's that about?"
Bruce: "When did you leave Charlie?"
Charlie: "Uh, let's see - woulda left it right around 2000?"
Bruce: "So, between 2000 and 2006-2007, and there's been tremendous growth, has it not? Could that have anything to do with it Greg?"
(Caller) Greg: "Well, Bruce, here's my point. With the financial crises we have going on right now, it's a federal crime to make false assertions about a financial institution that might cause it harm."
Bruce: "Greg, from what I understand, the credit union says there's never been any fraud or abuse."
(Caller) Greg: "And you know what? The current management of the credit union has been absolutely stellar. Charlie left under some duress, after the current management came in, and it's grown tremendously, and yet Charlie says it was a $5 million credit union when in fact it was a $200 million credit union."
Charlie: "I think you must have it confused with the Golden One or something and need to..."
(Caller) Greg: "No, no, no, don't be giving me that stuff Charlie! I've been a member of that credit union for a long time."
Bruce: "Greg, where can we get that information, other than Charlie Brown's website?"
(Caller) Greg: "Go to www.sccu..." (Interrupted by Bruce) .... Call their CEO!!!"
Bruce: "O.K., you know what, let's do this. Greg, let me put you on hold for a minute, and can you give that information to Kendall, and then I can check on that later?
.... If we're going to talk veracity here, let's have some facts backed up that we can check."
The name of the credit union has never been on the "Charlie Brown for Congress" website, which seems strange. The description of his reign as Chairman of the Supervisory Committee lacks any specifics. It seems logical that if Charlie was the crusader who cleaned up a financial institution rife with waste and abuse, he would chronicle his successful reform measures.
Instead of compelling evidence, the reader is left with vague, unverifiable claims... "he didn't turn a blind eye" and "he stood up for the fiscal responsibility that his members deserved."
Perhaps Charlie is hoping that no one will check the facts. And he might have gotten by with it, if not for caller Greg.
A little research into Sierra Central Credit Union's history makes two things clear. Charlie Brown can't keep his numbers straight, and Sierra Central Credit Union is much better off without him.
Sierra Central Credit Union had approximately $29 million in assets when it was formed in 1981. By 1999, SCCU had approximately $242 million in assets.
These numbers raise serious doubts about Charlie Brown's competence.
Charlie Brown was Chairman of the Supervisory Committee of a credit union for several years, and he can't remember that this financial institution had over $200 million in assets? Indeed, he swears up and down it was only $5 million.
During Charlie's tenure as Chairman of the Supervisory Committee at SCCU, things went badly. Membership dropped, growth stagnated, and several key staff members left the credit union, creating a nine-month long leadership void.
It's becoming clear why caller Greg kept emphasizing the fact that SCCU grew rapidly after Charlie left. It looks as though there's a connection.
In January of 2000, SCCU's Board of Directors made a hiring decision that led to a finance management Dream Team: John Cassidy, Jim Almon, and Ron Sweeney. Their first move was to "identify problems" and begin building a new leadership team. It appears that it was during this process that Charlie left the credit union's Supervisory Committee.
These changes led to "what some still call a miraculous recovery," with an explosive growth in assets that has continued to present day.
After the Bruce Maiman show, the "$5 million" reference disappeared from the Charlie Brown for Congress website, but everything else about the credit union remained.
It might be time for 4th District voters to begin taking a long, hard look at Charlie Brown and demanding the truth, the whole truth, and nothing but the truth. He is asking us to place the future of our economy in his hands. That's a lot to ask, for a man who can't remember the difference between $5 million and $200 million.
Charlie Brown campaign, 4th Congressional District, Chairman of Supervisory Committee, credit union, $195 million discrepancy, economy, website
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Wow. What a mountain over such a mole hill.
Sierra Central had about $5 million in income in 2000 (income in 2004 was $5.5 million). Perhaps that's the number the website meant to reference.
And did you read this article, pray tell? About Sierra Central's problems back in the late 1990s?
Trio Of Former Bankers Help Turn Around Ailing Sierra Central
The Credit Union Journal
January, 2001
by Tina Carlson, Reporter
A credit union at which growth had stagnated and the CEO's desk had sat empty for nine months has turned itself around in a big way, thanks to management hired away from local banks.
After going the final three quarters of 1999 without a chief executive, the board of Sierra Central Credit Union filled the spot in January of 2000 with former Great Western/Washington Mutual Bank manager John Cassidy, who in turn recruited colleague Jim Almon for president/COO.
The new team, including EVP/CFO Ron Sweeney, shed rigid policies and procedures by empowering employees and implementing direct sales, a dedicated sales force and overhauling the product line offered through its 17 branches in this northern California community.
What's more important, Winston? Remembering a specific number eight years after the fact or making a difference in the turn-around of a financial institution as a member of its Supervisory Committee?
Let's look at Tom McClintock whom you claim is "respected nationwide as a brilliant economics expert". On what basis do you make that OUTRAGEOUS claim, Winston? McClintock graduated from UCLA in the late 1970s with a degree in Political Science. Aside from statistics and basic math a Poli Sci degree requires very little in the way of financial training. McClintock never went back and got a master's in business or public management. His sole experience with fiscal matters is voting against the California budget year after year after year. He is a noted obstructionist but he can hardly be called a "brilliant economics expert". Why, this "brilliant economics expert" said on KFBK on September 20 that eliminating the capital gains tax would solve the immense financial crisis America is facing.
I tell you what, Winston. I do have an MBA and I can tell you after doing ten minutes of research: Eliminating the CGT would have had virtually no impact on the frozen credit problem that is at the heart of our economic mess. What has worked is direct infusion of a huge amount of capital from governments into banks. McClintock is stuck repeating his tired laissez faire financial prescriptions (copied from Grover Norquist and dating back to the early 1980s) which have had a great deal to do with creating the mess we are in today!
The LAST thing we need in Congress is "brilliant economics expert" Tom McClintock clearing away regulatory infrastructure so that the markets can melt down once again! We need someone with common sense in Congress and that's Charlie Brown.
I meant September 30, not September 20 in the third paragraph from the bottom.
The post referred to Charlie not McC. That is the same thing I hear every time I have asked Charlie a question, three word into the answer it turned to Doolittle, now it's McC.
Charlie Brown is an empty suit. Somebody should hang him in effigy.
And when I say "hang him in effigy", lest some idiot try to suggest that I am proposing personal harm to Charlie, I am not. I mean hang an empty suit. Preferably a BDU, cover, red shirt and jeans.
R_T...by your definition from earlier post, what you describe is a military uniform and to hang someone in effigy in military uniform is treasonous (also by your definition.) It now sounds like you are suggesting a treasonous act. It's all part of the 6 degrees of separation.
loomis:
Please pay attention. The blog post above started with the sentence: "As issues go, the economy is the 800 lb. gorilla in this Congressional race, and many Californians will cast their vote for the most qualified and trustworthy financial expert"
Bringing up McClintock's tried-and-failed out-of-date economic philosophy is completely valid in the context of this blog.
"winston" is telegraphing McClintock's campaign finance violations by trying to slander his opponent.... typical. McClintock just had to make an emergency "charity" donation right before the Sept Quarterly deadline, trying to hide his deceptive campaign booking. State funds from his 2010 account are being used to finance his federal campaign, a violation of Federal law. Read this:
FEC DISCLOSURE REPORTS Filer ID C00446815
September 16, 2008 Response Due Date Oct 17, 2008
ID # C00446815 Amended 12 day Pre Primary Election Report (4/1/08 - 5/14/8) received 8/23/08, and Amended July Quarterly Report (5/15/8 - 6/30/8 ) received 8/23/8
David Bauer, Treasurer, McClintock for Congress
Sacramento, CA 95833
Dear Treasurer, This letter is referenced by the Commission's preliminary review of the report referenced above. This notice requests information essential to full public disclosure of your federal election campaign finances. Failure to adequately respond by the response date noted above could result in an audit or enforcement action. Additional information is needed for the following item:
- Your amended July Quarterly Report, received 8/23/08, and your amended 12 day Pre Primary Election Report, received 8/23/08, discloses a substantial increase in the AMOUNT OF DEBTS FROM THOSE DISCLOSED ON YOUR ORIGINAL REPORTS. Please amend your reports to clarity WHY THIS ADDITIONAL ACTIVITY WAS NOT PROVIDED WITH YOUR ORIGINAL FILINGS. ( 1l CFR § 104.3)
Please note, you will not receive an additional notice from the commission on this matter. Adequate responses must be recieved by the Commission or or before the due date noted above, to be taken into consideration in determining whether audit action will be initiated. Failure to comply with the provisions of the Act MAY ALSO RESULT IN AN ENFORCEMENT ACTION AGAINST THE COMMITTEE. Any response submitted by your committee will be placed on the public record and will be considered by the Commission prior to taking enforcement action. REQUESTS FOR EXTENSIONS OF TIME IN WHICH TO RESPOND WILL NOT BE CONSIDERED.
___________
Sept 16 2008 Response Due Date October 17 2008
David Bauer, Treasurer , McClintock for Congress
Sacramento, CA 95833
ID # C00446815 Ref Amended 12 day Pre Primary Election Report (4/01/8 - 5/14/8 ) received 8/23/08 , Amended July Quarterly Report (5/15/08 - 6/30/8) received 8/23/08
Dear Treasurer,
This letter is prompted by the Commision's preliminary review of the report(s) referenced above. This notice requests information essential to full public disclosure of the your federal election campaign finances. Failure to adequately respond by the response noted above could result in an audit or enforcement action. Addditional information is needed for the following item:
- Your Amended July Quarterly Report, received 8/23/8, and your amended 12 day Pre Primary Election Report, received 8/23/8 , DISCLOSES A SUBSTANTIAL INCREASE IN THE AMOUNT OF DEBTS FROM THOSE DISCLOSED ON YOUR ORIGINAL REPORTS. PLEASE AMEND YOUR REPORTS TO CLARIFY WHY THIS ADDITIONAL ACTIVITY WAS NOT PROVIDED WITH YOUR ORIGINAL FILINGS.
Please note, you will not receive an additional notice from the Commission on this matter..... responses must be received by the due date noted ... failure to comply ... may also result in an enforcement action. Requests for extensions of time in which to respond will not be considered.
___________
July 30, 2008 Response due date August 29 2008
ID # C00446815 Ref. Amended July Quarterly Report 5/15/08 6//30/08 received 7/23/08
David Bauer, Treasurer, McClintock for Congress, Sacramento, CA 95833
Dear Treasurer,
This letter is prompted by the Commisssion's preliminary review of the reports(s) referenced above. This notice requests information essential to the full public disclosure of your federal election campaign finances. Failure to adequately respond by the response date noted above could result in an audit or enforcement action. Additional information is needed for the following 4 items:
1. Some of the contributions itemized on Schedule A of your report appear to have incorrect values in the "election cycle to date" field. This field should reflect the total amount that the committee received from the contributor in the current election cycle, from 11/8/06 through the date of the receipt of the contribution. Some of the .... totals ..... do not appear to include all contributions from the contributor received in this election cycle..... failure to correctly total could lead to excessive contributions....
2. .... totals for certain entries on your report indicate additional contributions that should have been itemized. .... each contribution from a PAC must be itemized, regardless of the amount...
3. Schedule A of your report indicates that your committee may have failed to file one or more required 48 hour notices regarding "last minute" contributions ... after the close of the books for the 12 Day Pre Primary Election report (see attached). A principle campaign committee must notify the Commission in writing within 48 hours of any contribution of $1,000 or more received between 2 and 20 days before an election.... failure to report may result in penalties or legal action......
4. Schedule D of your report itemizes debts with outstanding beginning balances, however THESE DEBTS WERE NOT INCLUDED ON YOUR PREVIOUS REPORT. Please file an amendment to .... correct this discrepancy.
Please note you will not recieve an additional notice from the Commission on this matter. .... responses must be recieved by the Commission on the due date noted.... failure to comply may result in enforcement action...
_____
June 24, 2008 Response Due Date July 25 2008
David Bauer, Treasurer, McClintock for Congress, Sacramento, CA 95833
ID # C00446815
Dear Treasurer,
.... Your Amended April Quarterly Report, received 5/15/08, discloses a substantial increase in the amount of debts from those disclosed on previous filing received 4/17/08, PLEASE AMEND YOUR REPORT TO CLARIFY WHY THIS ADDITIONAL ACTIVITY WAS NOT PROVIDED WITH YOUR PREVIOUS FILING.....
________
May 15, 2008 Response Due Date June 16 2008
ID # C00446815 Ref Amended April Quarterly Report (1/1/8 - 3/31/8 ) recieved 4/21/08
David Bauer, Treasurer, McClintock for Congress, Sacramento, CA
Dear Treasurer,
..... On schedule A of this report, you have not itemized all of the necessary contributor information. You must provide the date, ... totals, amount, and partnership attribution for each itemized receipt. Please amend your report to include the aggregate election cycle to date totals.
____________
May 8, 2008 Response Date June 9 2008
ID # C00446815 Amended April Quarterly Report (1/1/8 - 3/31/8 ) recieved 4/21/8
David Bauer, Treasurer, McClintock for Congress, Sacramento, CA
Dear Treasurer,
This letter is prompted by the Commission's preliminary review of the report(s) referenced above. This notice requests information essential to full public disclosure of your federal campaign finances..... additional information is needed for the following 2 items
1. Commission Regulations define the term "purpose" to mean a brief statement or description of why a disbursement was made. Examples are dinner expense, media, salary, polling ,travel, party fees, phone banks, travel expenses reimbursement, catering, exit polling , door to door GOTV, GOTV phone calls, driving voters to polls.
Unnaceptable descriptions requiring addtional clarification include
advance
consulting
commission
contract labor
retainer
election day expense
expense
invoice
support
miscellaneous
professional services
voter registration
POLITCAL CONSULTING
FUNDRAISING SVC (INDIVIDUAL )
additonal clarification can be found at fec.gov/law/policy/purposeofdisbursement
Please amend schedule B of your Report to correct the descriptions that do not meet the requirements of the regulations
_________________________________
Interpretation of above: McClintock's campaign has been spending a lot of money, which he is not officially acknowledging as having received. Despite repeated attempts by the Federal Elections Commission to find out how much, his amended filings do not explain the where it's coming from or where it really went. 4 months later, McClintock still cannot come up with a coherent explanation of what happened between April 1, 2008, and June 30, 2008.
_________
On October 7, McClintock's spokesperson, Bill George, claimed that McClintock had given $ 51,000 of his CA State 2010 account for future political runs to "charity." Those donations occurred before the Sept 30 Quarterly deadline. But those "charity" organizations in at least 2 instances contain campaign consultants who have been working to elect him. $20,000 is was given to Cherish CA's Children, treasurer John Stoos, a longtime McClintock consultant, manager, and spokesperson. $6,000 was given to Capitol Resource Institute, an "issues advocacy group" which has Rep. John Doolittle, McClintock, St Sen. Sam Aanestad, and Ken Campbell on the board. Both Campbell and Stoos have been regularly blogging for McClintock. Both "charities" actually are pushing wedge issue propositions in this election.
Federal Law prohibits state campaign accounts from being used for Federal elections. As shown above, McClintock's campaign has been making many unexplained expenditures.
The money trail of the 3rd "charity" donation, the alleged $25,000 to Acres of Hope, is more complex, as Acres of Hope was founded by a former VP of Chevron Oil. A Chevron PAC has given McClintock $2000 so far this cycle (that number could go up in a day or two with another filing due) and the Oil and Gas industry has donated at least $19,000 to him via his FEDERAL accounts, per Open Secrets.org. But McClintock also has Oil and Gas industry donations on his state accounts. Acres of Hope is also affiliated with Bayside Church, which is State Assemblyman Ted Gaine's church. Ted Gaines, who has nobody running against him, recently donated $30,200 to the CA Republican Party, the second time he's done it this cycle, so that's $60,400 to be used to help elect Republicans statewide. And Ted Gaines also has ChevronTexaco donations on his state account for this election cycle, $1000 and $1000. Ted Gaines has no opponent in this election.
Ted Gaines has recieved money from Chevron into his state coffers.
Ted Gaines has been making lots of payments to those same political organizations that supposedly are non profit "charities", but in reality are affiliated with John Doolittle, Tom McClintock, Ken Campbell, and John Stoos, and are paid political operatives shilling for McClintock. That isn't the same as being a charity. If Ted Gaines can get a big donation from McClintock's state account for his Church's charity, it frees up other donations for use by people running those propositions trying to gun up support for McClintock. It also gives McClintock a tax break. That's cynical, but that is the reality of it.
Dan Logue, another candidate for Assembly, has also been spending his state account money on joint appearances with Tom McClintock.
So much for "Charity." The shelter got only a pittance compared to the slate mailers, who are getting a thousand times more. And all for a wedge issue designed to take away a civil right. Advocating discrimination against others, based on faith. For shame. So much for "freedom."
In 2008, all that is left for the Republican Party to do is to take the dregs of Karl Rove's hate mongering and run with it.
A shorter version of that would be, why would ANYBODY want to send a known con artist like McClintock to Washington DC, who can't even keep his sticky little fingers out of his account he's planning on using in his NEXT CA state election while he's running for Congress now in a district he doesn't even live in ? An account that lobbyists for Big Oil and Big Pharma and Big Insurance have been stuffing full of cash, in violation of individual donation limits if that was instead given to his Federal account ?
And they said months ago they'd close it, instead they've used it as a slush fund. He sounds like Doolittle saying he'd stop paying Julie Doolittle a fundraiser's fee and then he kept on doing it, and DOOLITTLE, meantime, has been collecting funds from people after he dropped out of the race, that he has had to return, also !