For David and Deborah Teja, the investment deal represented a chance to sock away college money for their two children, set aside a nest egg and have enough extra to give to charity.

It was, their investment advisers repeatedly told them, a "no brainer" that would pay them 12 percent interest on their investments, which would be guaranteed by the properties they bought to generate their cash.

Like many others, they attended a seminar presided over by investment guru Lawrence Leland "Lee" Loomis at a Holiday Inn and then went to a two-day event at the Gold Country Casino in Oroville to learn more. The high school teacher and social worker were surrounded by professionals much like themselves, who responded to the idea that their investments would enable folks in financial trouble to stay in their homes.

And so the Tejas, well educated with perfect credit scores and a successful business in Chico, took the bait, siphoning $150,000 in equity out of their home in 2006 and turning it over to Loomis Wealth Solutions, a firm Loomis started in Chico and later moved to Roseville.

Today, the money is gone, part of what federal authorities say was a $100 million Ponzi scheme that has spawned a years-long investigation, a maze of mortgage fraud, drug and hate crime charges, and financial woes for investors nationwide.

"Our credit is destroyed, and he just gets to walk the streets freely," David Teja said last week, sitting at the same dining room table where he signed the Loomis loan documents. "We have a 13-year-old and an 11-year-old, and they just destroyed our college fund. That was one of the motivators, to be able to put some money into a college fund."

For the most part, Loomis investors have been silent as they hold out hope for a fruitful investigation and some financial relief. But some, like the Tejas, are coming forward.

"He referred to himself as a Christian, God-fearing man," Deborah Teja said. She described the Hummers and Cadillac Escalades driven by the Loomis crowd as they explained how investors could buy into properties in various parts of the country that Loomis would rent out.

Loomis has denied wrongdoing to federal agents and through his attorney. According to Assistant U.S. Attorney Russell Carlberg, Loomis remains under investigation in an ongoing probe that has generated criminal charges against four of his lieutenants.

His financial empire is in ruins, and he and his father-in-law, John Hagener, are facing a civil complaint by the U.S. Securities and Exchange Commission, along with civil suits by investors who say they were duped out of money. Hagener answered the SEC complaint with a denial of wrongdoing; Loomis never responded and was found to be in default June 10.

The Tejas are among those suing Loomis. A group called Attorneys Against Abuse of Elders filed a proposed class-action suit in Sacramento Superior Court, calling the investment plan "an elegantly sophisticated scheme." That suit has since been moved to federal court.

Loomis, whose annual salary was $400,000, has moved out of his 7,553-square-foot, $1.9 million Granite Bay home and relocated to Roseville while the investigation continues. His attorney, Patrick Hanly, said the house is in foreclosure, and "the government shut his business down by seizing all of his records."

Meanwhile, the investors, who claim they were victimized, find themselves trying to avoid bankruptcy and foreclosure.

Sacramento resident James Wells said he bought into the Loomis Wealth Solutions plan with $350,000 that came from equity in his home and his wife's 401(k) retirement account. He said he had heard that Loomis had achieved profits for investors in the Chicago area. After attending the seminars, Wells said he felt he had found a sound plan that also would let him practice philanthropy.

"He was very believable," said Wells, an accounting manager for an Internet firm.

"At one point I was thinking, once the money came in, I'd start up a scholarship at Sac State. You want to do something for the community, also."

Wells said he invested in four properties, three in Florida and a condo development at a Colorado resort. "So, we were getting statements from Loomis every month and, hey, it's appreciating at 12 percent every month," Wells said.

In fact, he alleges, nothing was appreciating and the mortgages weren't being paid. All four properties ended up in foreclosure, and although he managed to work out agreements to get out from under the loans in Florida, he said the lender that bankrolled the Colorado property is still seeking $270,000.

Wells, who has two children, 12 and 8, said he has moved out of his El Dorado Hills home and now is renting.

The Tejas invested in two properties, one a condo in Cameron Park, the other a home in Orland where they thought they were helping occupants who had been unable to keep up the payments but rented the home back from Loomis after the Tejas invested.

They say they felt good about being able to help the family, although both agree that Deborah Teja never was entirely comfortable with the investments. They felt rushed when it came time to sign documents, and they would get a call around 8:30 p.m. from Loomis or an associate wanting to "whip by" at 9 and have them sign papers. When Deborah Teja would balk, they said, Loomis would get pushy. "He kept telling her, 'It's just a no-brainer' when he would bring the documents to sign," David Teja recalled.

"There were so many red flags," Deborah Teja added ruefully.

Last year, as Loomis' company was collapsing, David Teja drove to Roseville to try to get his money back. He got back to Chico with a napkin on which Loomis had scribbled an explanation of why the Tejas still had a sound investment, Deborah Teja said. (Her husband recalls the notations were on a piece of paper, not a napkin, but they agree he was less suspicious than he should have been).

"We'd probably own five houses if it wasn't for me," she said.

To add to the insult, the Tejas discovered the Cameron Park condo that was supposed to have been "rented" was actually occupied rent-free by Loomis' daughter.

The strain on the family is obvious.

"He's stripped us to nothing," Deborah Teja said. "When we tell the kids they can't have something we can't afford, they say, 'It's Lee Loomis isn't it? I hate Lee Loomis.' "

The painter of light is having a dark period.

Thomas Kinkade, the Placerville native who became one of the world's wealthiest artists with his sentimental landscapes and Christian motifs, has had a string of legal troubles.

His company owes millions of dollars to art gallery owners who successfully pressed fraud claims.

Earlier this month the firm filed for bankruptcy protection from those gallery owners and hundreds of other creditors.

And on Friday, the 52-year-old Kinkade, who calls himself "the painter of light," was arrested on a DUI charge outside Carmel, where he owns a home.

Kinkade could not be reached for comment Monday. But a company spokesman insisted all was well in the artist's empire.

"Tom is still painting and the business is still strong," said Dave Satterfield.

He said Kinkade would not comment on the DUI arrest on the advice of his lawyer. Officials at Kinkade's corporate offices were still reviewing the allegations, Satterfield said.

"We will have more to say once we've completed that review," he said.

According to the California Highway Patrol, a Monterey County sheriff's deputy stopped Kinkade's Mercedes- Benz for a vehicle code violation Friday night.

The deputy suspected Kinkade was under the influence and called the Highway Patrol for assistance, said CHP Officer Robert Lehman.

A CHP officer performed tests to determine if Kinkade was impaired and arrested him just after 10 p.m., Lehman said.

The arresting officer reported that Kinkade was "very polite," during the exchange, Lehman said.

The painter was booked into the Monterey County jail on suspicion of misdemeanor drunken driving, Lehman said.

Kinkade submitted to a blood test, but the CHP is not releasing his blood-alcohol content, the officer said.

It was the second time this month that Kinkade had been embroiled in legal woes.

On June 2, his company Pacific Metro, formerly known as Media Arts and the Thomas Kinkade Co., filed for bankruptcy protection in federal court.

The company, one of Kinkade's two major corporate arms, produces the paintings sold at galleries around the world, Satterfield said.

Another corporation handles licensing, he said.

Satterfield said reorganization under bankruptcy laws was needed because outsourcing had left the company with a fraction of its former work force but still holding long-term leases.

"The company is in serious financial condition and is unable to continue without debt relief," the bankruptcy filing said.

The company owes 1,000 to 5,000 creditors a total of $10 million to $50 million, according to court documents.

A list of creditors more than 100 pages long was appended to the bankruptcy filing. It included a cardboard-box company in Sacramento, the state Board of Equalization and small art galleries in Folsom, Auburn and Elk Grove.

At the top of the list were Karen Hazelwood and Jeff Spinello, art gallery owners from Virginia to whom Kinkade's company said it owed almost $2.4 million.

The debt stemmed from a fraud claim the couple won in arbitration in 2006. The 9th U.S. Circuit Court of Appeals upheld the award last June.

The couple and their lawyer could not be reached for comment Monday.

Second on the list were another set of art gallery owners who won a $1.4 million award in a similar case. That case is still being appealed, Satterfield said.

There had been a number of similar claims against the company which had failed, he said.

The federal government says it can no longer afford to maintain Auburn State Recreation Area, the popular park in the footprint of the defunct Auburn dam.

The U.S. Bureau of Reclamation has been paying $2 million annually to the California Department of Parks and Recreation to operate the 30,000-acre park at the confluence of the north and middle forks of the American River.

That money has paid for ranger patrols, trail improvements and a minimal level of visitor programs for the past 33 years.

The federal government acquired the land in the 1960s on the assumption that it would be flooded behind a dam. That plan is dead, and the bureau says it can no longer spare the money for upkeep.

"We just don't have the budget at this point to effectively keep it open and assure safety and security on the lands," said bureau spokesman Pete Lucero.

The agency also notified the state on May 21 that it will stop paying for a new resource management plan the state has been preparing for at least three years. It would have been the first park plan to account for actual visitor activity.

Now, the park must continue to rely on an 18-year-old interim plan that included the assumption that a dam would be built and that boats would be motoring on the flooded canyons.

In reality, the park is adored by outdoor enthusiasts who cherish its near-wilderness qualities less than an hour from downtown Sacramento. Nearly 1 million people visit annually for hiking, biking, kayaking, rafting and solitude.

The city of Auburn even named itself "Endurance Capital of the World" to capitalize on the long-distance running and equestrian events that use park trails.

"It's really just a crashing disappointment," Michael Garabedian, president of Friends of the North Fork, said of the halted management plan. "It gets heavy use, and it's got to be managed responsibly."

Lucero said Reclamation will provide enough funds to keep the park open for the rest of this year. It hopes to secure cost-sharing agreements with other federal, state and local agencies by September to cover future operations.

The prospect for significant financial help, however, may be dim. The state parks department last year curtailed hours and programs systemwide due to budget cuts, and it is struggling to avoid deeper cuts this year.

"The fiscal crisis we have makes it very difficult for us to even put that on the table," said Scott Nakaji, state parks district superintendent.

"We don't control the destiny of the lands, but we think it has so much value to the people of California that we want to be part of that," Nakaji added.

When asked whether there is a risk the area could cease to be a state park, Nakaji said, "We're preparing for anything, but it's so uncertain."

Lucero emphasized Reclamation is not abandoning the property. Officially, an Auburn dam remains a congressionally authorized water project, so the federal government still has significant responsibilities in the canyons.

He also said the move was not prompted by the 2008 decision by the California Water Resources Control Board to revoke water rights associated with Auburn dam. While the decision effectively killed the dam, it had already been stalled for decades amid environmental, political and cost concerns.

Donna Williams, chairwoman of the Recreational Trails Advisory Committee, hopes a surge of volunteer effort can help the government maintain the park.

Her group operates a website, parkwatchreport.org, that monitors trail conditions and other issues in the park.

"It's phenomenally important to people," Williams said. "So maybe we should start doing some stuff ourselves."

For more than half of F.C. "Rocky" Rockholm's 15 years with the Roseville Police Department, he served as its union's president. Now as he seeks to retain his seat on the Placer County Board of Supervisors in Tuesday's election, his former union is among the organized labor groups working to elect his opponent.

As the race between challenger Jack Duran and Rockholm draws to a close, the source of the candidates' financial support is a key area of contrast.

Duran, a Roseville Joint Union High School District trustee, has received significant financial support from various Democratic clubs and labor unions.

Rockholm, a one-term incumbent, has received hefty support from developers and fellow Republican leaders.

During Rockholm's first run at the supervisor seat, he won the endorsement of the Placer County Deputy Sheriff's Association and the Roseville Police Officers Association. The two organizations are among more than a dozen backing Duran this time around.

Rockholm said he lost the deputy association endorsement when he joined the rest of the board in forcing concessions.

"They flat told me that is why they were mad at me," Rockholm said.

He said the Roseville officers' association followed suit without interviewing him. Association officials did not return a call seeking comment.

"I'd do the same thing, knowing that I'd lose the endorsement," Rockholm said of his decision. "I had a job to do to represent all the constituents and I did it."

But it's not just local law enforcement groups that back Duran.

Led by the Sacramento Central Labor Council's $10,000 contribution, Duran is being supported by unions representing ironworkers, chauffeurs, Sacramento community college teachers and Sacramento sheriff's deputies, among others. Through May 22, Duran had raised $67,453.

Bill Camp, executive director of the labor council, said Duran was the superior candidate and will be an "excellent leader."

Rockholm is touting his willingness to push back against unions. His website notes that he refused to support a proposal offering older workers an incentive to retire early.

"I said, 'Why don't you call it what it is – a golden handshake or a golden parachute,' " Rockholm said. "If they want to retire, let them retire."

His campaign has received $30,000 from the Placer Vineyards Development Group, which wants to build a major subdivision near the Sacramento and Placer county border. An additional $10,000 came from the political arm of the Sacramento Metro Chamber.

Including major contributions after the May 22 reporting deadline, Rockholm has raised $124,799.

Duran has made recent noise about Rockholm's contributions from the county's landfill operator.

In a press release Wednesday, Duran called on Rockholm to give back money from Recology, formerly known as Norcal Waste. As a Roseville city councilman, Rockholm backed the vendor's $125 million contract.

The Duran campaign has alleged that since 2004 Rockholm has accepted $25,000 from the waste contractor and one of its affiliates. Rockholm's campaign said the figure is closer to $20,000 and that the issue is "old news" from 2004, when he was running for a second term on the Roseville council.

Since 2009, Recology has contributed $595 to Rockholm's campaign, state campaign finance records show. Rockholm's campaign officials said their records only show a contribution of $95, and they can't explain the discrepancy with Recology's reporting to the secretary of state.

Duran campaign manager Todd Stenhouse noted that Norcal Waste has been linked to two recent bribery scandals in other parts of the state. The charges were eventually dismissed in one of those cases.

Rockholm campaign manager Kent Pollock called the landfill allegations a "transparent hit piece."

F.C. "Rocky" Rockholm

Because the intersection is a major entrance and exit route for Interstate 80 traffic, motorists are advised to seek alternate routes.]]> The signal outage has caused traffic delays, and city officials say repairs likely won't be completed until Friday morning. In the meantime, the intersection will operate as a four-way stop.

Because the intersection is a major entrance and exit route for Interstate 80 traffic, motorists are advised to seek alternate routes.]]> http://www.localstew.com/ca/2010/06/riverside-cirby-traffic-signal-disabled-after-accident/feed/ 0 http://blogs.sacbee.com/crime/archives/2010/06/auburn-man-susp-1.html#mi_rss=Placer%20County%20News http://blogs.sacbee.com/crime/archives/2010/06/auburn-man-susp-1.html#mi_rss=Placer%20County%20News#comments Thu, 03 Jun 2010 02:15:57 +0000 SacBee -- Placer County News http://blogs.sacbee.com/crime/archives/2010/06/auburn-man-susp-1.html#mi_rss=Placer%20County%20News http://www.localstew.com/ca/2010/06/auburn-man-suspected-of-possessing-drugs-weapon-arrested/feed/ 0