June 2009  

We do not make jokes, we simply watch the LA Times, the Orange County Register and CID/HOA board of directors and report the facts

 

Prosecuting Mr. Curtis - or is it Persecuting?

Posted by CotoBlogzz  |  05/26/2009  8:30 PM

PCM General Manager Milt Johns, taking exception to the coverage by Orange County Register of the recent exile of United Mutual Director Michael Curtis from his own community, documents his displeasure at the OC Register's reporter and documents the  rationale for barring Mr. Curtis from certain areas of the community in a memorandum to the United Mutual Board dated May 21, 2009 -  (click here for pdf facsimile).

"United Director Michael Curtis has once again sent out a viral e-mail, which has been editorialized and published by the OC Register, accusing PCM and the corporation Boards of wrongdoing, apparently precipitated by barring him from PCM's offices on the second floor", reads in part the note. Then accuses Mr. Curtis of having provided the OC Register reporter privileged information, which some argue is the Community's infamous Incentive Plan - click here for copy of alleged smoking gun. However, as far as we can ascertain, the alleged privileged information is the same one Mr. Curtis discusses during the February 2009 Board Meeting

February 2009 Board Meeting Annotated Video Clip in pdf format - download, then press play

In the Memorandum, Mr. Johns makes certain assertions, such as:

1.  PCM will not longer reply to a certain OC Register reporter  “due to her biased reporting that results in articles based on self-serving accusations and misrepresentations

2.  Over the past nine months,  employees have made multiple complaints to PCM… they are serious allegations, and PCM had no choice but to insure the safety of their employees by separating them from Mr. Curtis.” 

3.  “It is a common belief of American institutions that incentive plans contribute to the savings, ingenuity, and productivity that improve companies, big and small. Signed,  By the following United Board Members: Lloyd Foster, Bevan Strom, Linda Wilson, Paul Vogel, John Dalis, Maxine Mcintosh, Arlene Miller, Gail McNulty, Marty Rubin, Marv Rosenhaft 

Needless to say, Mr. Johns' memorandum raises more questions than answers, so we take our questions to the United Board and PCM's Public Relations personnel.  The questions posed to the board are as follows:

A.  You may recall that last year OCR/Globe reporter Cheryl Walker remarked that “"Never, ever, in the years I have been here, has the PCM staff, or any group from the boards, gone over our heads to the Register to try to control editorial content in the Globe or the web." , however, Laguna Woods resident Joe Fschler  rebutted Ms. Walkers remarks saying:  “This was a definite attempt by the President of the Third Laguna Hills Mutual to control the editorial content in the Globe and also threaten our constitutional right of Freedom of Speech”

So, is  PCM trying to control OCR’s editorial content or not?  If the OCR coverage makes everyone uncomfortable, do Mr. Johns assertions in this case carry any weight?

Also, as you may know, we have been following the Laguna Woods community for some time giving PCM and the various boards an opportunity to comment on anything we publish.   Given that we have been unable to engage neither PCM, nor the boards, based on the aforementioned memorandum, can we conclude that the CotoBuzz Journal coverage of the same issues is not misleading as the OCR’s according to Mr. Johns, and solely fact-based?

B.  As you may know, in a separate case,  when PCM employees felt threatened by a 73-year old resident, a restraining order was filed.

 Over the past nine months, has PCM kept the United Mutual board informed of potential liability over Mr. Curtis  threatening behavior toward PCM employees?  If so, can you supply verifiable evidence? If so, the board would the board having not done anything, can it be viewed as dereliction of duty?

If not, why is it that a restraining order was not filed against Mr. Curtis by PCM as done with Ms. Skogen?  Does it follow then that Mr. Curtis is less intimidating to PCM employees than Ms. Skogen?

 

Whom or what are most you afraid of?

Lou Skogen - A Restraining  Order filed against her Michale Curtis -  Exiled from certain areas in the community

 

C.  The incentive plan is a tougher issue and Mr. Johns’ defense is less then compelling:  “The auditors did not see me do it, therefore corruption does not exist” argument carries little weight in the current environment where corruption is rampant in the public and private sectors.

Further, we have published letters from residents discrediting Mr. Johns’ assertions contained in the references “Setting the Record Straight Document”.

For reference, we have copies of documents turned in to the IRS from a resident whistleblower who thinks something is wrong with the finances in the community.  As you know, this is also a serious issue, as the IRS may not be too kind to those who file baseless complaints.  Additionally, we have documents from other whistleblowers who have approached HUD for similar reasons.

Given that Mr. Johns asserts  that the incentive plan was approved by United Board Members: Lloyd Foster, Bevan Strom, Linda Wilson, Paul Vogel, John Dalis, Maxine Mcintosh, Arlene Miller, Gail McNulty, Marty Rubin, Marv Rosenhaft.  Can you confirm this is so and provide us with verifiable evidence so that indeed the record can be set straight?

 Please note that we continue to receive correspondence surrounding the matter of Mr. Curtis, such as the letter to the editor (CotoBuzz Journal) tentatively titled, How to recognize a cheater which includes a video clip of a board meeting depicting Mr. Curtis being heckled.  The video clip clearly shows a board more concerned with whether the information Mr. Curtis is using is or is not privileged, rather than the more substantive fiduciary duty he is trying to address

 

We also followed up with Mr. Curtis to make sure that we understood other assertions made by Mr. Curtis - Although we received a line by line response, we only include the most pertinent material below:

"  I'm not accusing the  boards of wrong doing with respect to the $5.4M PCM reports they secretly skimmed from our treasuries.  As PCM reported, boards had no knowledge.  Milt is purposely misleading you here"

I have never made accusations that the Boards "have engaged in illegal and secret bonus plans."  Never.  What I have said is the Boards have failed to do their fiduciary duty to investigate what happened and get our money returned.  The other portions of my allegations are not false.  The Boards and PCM are certainly blocking my access to records.  PCM has certainly engaged in illegal and secret skimming of our funds, and board members and PCM have certainly continued to try to defame me.  I have made NO "false accusations" as Milt says - NONE!  Milt is making these false statements to protect himself and PCM

I did NOT say that it was the "Board's decision to block" my access to the 2nd floor.  Look at last Monday's memo; it was from "Laguna Woods Village" (i.e. not any one of our corporations - actually, a non-entity) and clearly states this was a PCM business decision.  The memo actually implies the Boards had nothing to do with the decision.  Milt again misleads you.  I want to know why is was not on a PCM letterhead.

Milt just can't help but mislead you ... e.g. "The United Board has consistently provided Mr. Curtis with many documents he has requested."  How many is "many"?  That's not providing me with all the documents I have requested.  I have not asked for personnel records - only information on accounting books and records.  PCM and the Board have blocked most every request.

I have no doubt "PCM staff" have felt threatened.  If you have something to hide, then someone digging into records and asking detailed questions is a threat to you.  Now, Milt only has "female PCM staff members" surrounding him, and naturally, they want to protect their boss and their job.  We all know I am assertive.  I feel I am equally assertive towards all PCM employees and Board members.  As part of the management of a $93M annual business; I expect complete and honest answers to questions, I expect professional and timely responses to inquiries, I expect access to records "of every kind", and I expect fellow board members to act in such a way that reflects the serious responsibilities they have as a fiduciary.  Our homes are big investments that I want to protect, along with keeping our monthly assessments down as much as possible, ensure our funds are used properly, and residents are protected.  But, Directors cater to PCM and accept everything they say  ... like the story of the Pied Piper ... following along behind to be eventually lost..   

 

Mr. Curtis response to Mr. Johns Memorandum to the United Board

Conclusion:

Our conclusion to the United Board as we asked board members to comment is

Perhaps the bigger question is:  Why is it that all of the issues surrounding the community seem to not only involve PCM, but also controlled by PCM? 

Why is it that PCM employees seat on any board?  That in itself is an apparent conflict of interest.

Why is it that PCM dictates what can or cannot be done in the community? Take the Ultimatum delivered to the Third Mutual board by PCM, for  instance.

In other words, who is in charge in word and deed,  of the decision-making process anent management of the association affairs?

On a related matter, we are covering the recently launched initiative to recall certain United Board directors. We estimate that in matter of hours, close to 30% of the required signatures have been certified, perhaps indicating that residents are not too happy with the  Board nor PCM, or is there another plausible explanation?

Further, since United Director Maxine McIntosh has blocked our email address, we will be force to editorialize – something along the lines of:  Is itn ot counter-productive for a community to spend so much on Public Relations when boards simply cut the press off because  they do not like to answer the tough questions, such as Ms. Maxine McIntosh?”

No response from anyone, except from board President Lloyd Foster who simply responded with "jodyf"

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