2008 Annual Report of Foundation of the State Bar of California Foundation (AKA California Bar Foundation)

/48712884

  • As public service to the community, staff members of The Leslie Report shall publish a copy of a complaint YR submitted to the IRS, below:

    August 31, 2012

    Internal Revenue Service
    Exempt Organizations Unit
    1100 Commerce St.
    Dallas, TX 75242-1198

    Re: A referral for noncompliance with tax laws against exempt organizations Edison International Foundation EIN:95-4383002; Southern California Edison Co Veba Represented Trust Ein: 95-4372790; Southern California Edison Co Veba Non Represented Trust EIN: 95-4372792

    PRELIMINARY STATEMENT:

    In lieu of using IRS Form 13909 (Tax-Exempt Organization Referral Form), please consider this communication a formal complaint (referral) against Rosemead, California-based Edison International , Southern California Edison; Edison International Foundation EIN:95-4383002; Southern California Edison Co Veba Represented Trust Ein: 95-4372790; Southern California Edison Co Veba Non Represented Trust EIN: 95-4372792.

    On August 22, 2012 Edison International (“EIX”) and Southern California Edison (“SCE” — collectively, “Edison”) were duly served with a request for production of IRS Form 990, Form 990 Schedule A, and Form 1023. (See Exhibit 1.)

    Specifically, the request stated in part: “Please consider this communication a formal request to SCE and EIX (including, but not limited to, all subsidiaries and foundations owned and maintained by SCE/EIX) to produce their IRS Form 990, Form 990 Schedule A, as well Form 1023. ”

    In a letter dated August 30, 2012 (see attachment), Edison (through their senior attorney Allan D. Johnson) informed me that they will not comply with the request. Edison wrote: “EIX and SCE are unaware of any authority that would obligate them to produce these documents to you.” Furthermore, Edison also wrote: “Neither EIX nor SCE plan to take any further action in response to your request.”

    In view of Edison’s anticipatory failure to comply, the undersigned reluctantly makes this referral.

    INTRODUCTION:

    Close to one year ago, I fortuitously stumbled upon unusually large and highly peculiar financial transactions in conjunction with what appeared to me to be clear attempts to conceal and mislead involving the California Bar Foundation, CaliforniaALL, as well as utility companies Southern California Edison, PG&E, AT&T, Sempra, and Verizon.

    In my opinion, and based on the information I’ve discovered, it appears that funds were misappropriated and/or laundered through the misuse of non-profit entities California Bar Foundation and CaliforniaALL. Although other potential explanations certainly exist, based on these individuals’ involvement in the “OBAMA FOR AMERICA” 2008 presidential campaign, one likely possibility is that funds originating from utility companies were unlawfully misdirected to that campaign by representatives of those utility companies (i.e. Edison International, Southern California Edison) who supported then Senator Barack Obama in hope he would expand the Smart-Grid and clean energy initiatives.

    INTRODUCTION OF ACTORS:

    1. AMBASSADOR JEFFREY BLEICH — Mr. Bleich served as a director with the Foundation in approximately 2007-2008, as well as president of the State Bar of California.

    In 2007, Mr. Bleich established “OBAMA FOR AMERICA” National Finance Committee and served as its Chair.

    He is a personal friend of President Obama, who served as President Obama’s personal attorney and subsequently was appointed as the U.S. Ambassador to Australia. Prior to joining the Obama administration, Mr. Bleich was a partner with the San Francisco office of Munger Tolles & Olson, which represents clients Edison International, Southern California Edison, and Verizon Wireless.

    Out of close to 230,000 lawyers in California, also serving as a director with the California Bar Foundation in approximately 2007-2008 was another attorney from Munger Tulles Olsen, Mr. Bradley Phillips. Presently, Ms. Mary Ann Todd (also of Munger Tolles & Olson) and Richard Tom of Southern California Edison are directors with the California Bar Foundation.

    2. DEREK ANTHONY WEST OF THE UNITED STATES DEPARTMENT OF JUSTICE — Mr. West, who goes by the name “Tony West,” presently serves as third in command within the Department of Justice below Eric Holder and Lanny Breuer.

    Around 2007-2008, Mr. Tony West also served as Chair of the “California Finance Committee” of “OBAMA FOR AMERICA.”

    Prior to joining the DOJ, Mr. West was a partner at the San Francisco office of Morrison & Foerster, the law firm which assisted with the legal aspects of creating CaliforniaALL.

    Along with attorneys Raj Chaterjee and Susan Mac Cormac, Mr. West was part of senior partner James Brosnahan’s clique. For example, it was Brosnahan, West, and Chaterjee who defended John Walker Lindh, who is more widely known as the “American Taliban.” (It should be noted that it was actually Mr. Brosnahan who initially agreed to the representation since he knows Lindh’s father — Frank Lindh — who served as in-house Chief Legal Counsel at PG&E; Mr. Lindh is presently the Chief Legal Counsel of the CPUC.)

    Mr. West is married to Maya Harris, sister of Kamala Harris, who was part of CaliforniaALL.

    3. STEVEN CHURCHWELL OF DLA PIPER — Mr. Churchwell is a partner at the Sacramento office of DLA Piper, where non-profit CaliforniaALL was housed free of charge. Churchwell served as Treasurer, draft committee of “OBAMA FOR AMERICA” — also housed at the Sacramento offices of DLA Piper, adjacent to its roommate — CaliforniaALL.

    DLA Piper represents client Sempra Energy which owns San Diego Gas & Electric (SDG&E).

    4. RON OLSON OF MUNGER TOLLES & OLSON — Mr. Olson is a partner with the Los Angeles office of Munger Tolles & Olson, which represents clients Edison International, Southern California Edison, and Verizon Wireless. In addition to representing Edison, Olson is also a board member of Edison International and Southern California Edison, as well as the board of Berkshire Hathaway, City National Corporation, The Washington Post Company, Western Asset Trusts, RAND Corporation, the Mayo Clinic, and the Council of Foreign Relations.

    As of 2008, in-house general counsel for Edison International and Southern California Edison is Mr. Robert Adler — former managing partner of Munger Tolles & Olson.

    Around 2007-2008, Ron Olson was also part of “OBAMA FOR AMERICA.”

    5. JAMES J. BROSNAHAN OF MORRISON & FOERSTER – Mr. Brosnahan is presently a senior partner at the San Francisco office of Morrison & Foerster.

    He considers himself to be the “mastermind behind the Democratic Party.” CaliforniaALL was created by Morrison & Foerster, under the supervision of Mr. Brosnahan (known as the prosecutor of Caspar Weinberger). Specifically Susan Mac Cormac and Eric Tate assisted with the legal aspects of creating the entity. Mr. Brosnahan represented utility companies during California’s energy crisis (which Joe Dunn, Martha Escutia, and Geoffrey Brown were investigating) opposite Thomas Girardi.

    Later, Dunn, Escutia, Brosnahan, and Girardi launched the online publication known as Voice of OC.

    6. CHRISTOPHER JACOB YOUNG OF KEKER & VAN NEST — Mr. Young, commonly known as “Chris Young,” is currently listed on the State Bar of California’s database as an associate with Keker & Van Nest. Around 2007-2008, Mr. Young was an associate at Morrison & Foerster.

    Around 2007-2008, Mr. Young served as “Northern California Deputy Finance Director” for “OBAMA FOR AMERICA.”

    As noted above, State Bar of California records still show that Chris Young is an employee of Keker & Van Nest. However, very recently, Keker & Van Nest ( at the direction of partners John Keker and Jon Streeter, who also worked on the 2008 campaign as a “bundler” and is presently a director with the Foundation) abruptly removed Chris Young’s name from its web-site.

    7. ANNETTE CARNEGIE — Ms. Carnegie is presently employed at the Kaiser Foundation. Around 2007-2008, she was a partner at Morrison & Foerster and served as a director of the California Bar Foundation. In 2008, the Foundation poured into CaliforniaALL the large sum of $774,247; by comparison, most other donations were around $10,000 to $20,000. As shown below, the transfer of said money appears to be imbued with fraud and secrecy, especially in connection with four utility companies (Verizon, PG&E, Edison, and AT&T).

    8. KAMALA HARRIS — In around 2007-2008, Ms. Harris served as the District Attorney in San Francisco while at the same time she was also Co-Chair of “OBAMA FOR AMERICA.” Ms. Harris was part of CaliforniaALL’s “Advisory Council.” She is the sister of Maya Harris, who is married to Tony West. Media reports provide that parliamentarian Willie Brown served as mentor to both Tony West and Kamala Harris, and was Ms. Harris’s paramour. John Keker of Keker & Van Nest (known as the prosecutor of Oliver North) is also considered to be a “mentor” of Kamala Harris. (Incidentally, State Bar of California Board of Governor member Gwen Moore — also a “mentee” of Willie Brown — was honored by CaliforniaALL at a lavish dinner in a Sacramento hotel. Parliamentarian Moore is no stranger to your agency, having been the target of a sting operation known as Shrimpscam.)

    9. OPHELIA BASGAL OF THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (“HUD”) — In around 2007-2008 , Ms. Basgal was Vice President of Civic Partnership and Community Initiatives at PG&E, where she managed the company’s $18 million charitable contributions program, and oversaw its community engagement programs and partnerships with community-based organizations. Separately, around that time she surprisingly served as “Treasurer” with the “California Supreme Court Historical Society.” In that role, she presumably had contact with many judges, including those who were handling matters dealing with PG&E, such as Justice (Ret.) Joseph Grodin who acted as the mediator in a case Attorney General Bill Lockyer advanced against PG&E, which Jerry Brown (cousin of Geoffrey Brown) later dismissed in his capacity as the new Attorney General for California.

    Ms. Basgal served as a director of CaliforniaALL.

    10. VICTOR MIRMAONTES — Mr. Victor Miramontes, a resident of San Antonio, TX and business partner of former HUD Secretary Henry Cisneros in an entity known as CityView, was the chairman of CaliforniaALL.

    Mr. Miramontes has various connections to Orange County, and is otherwise familiar with its various legal circles.

    11. SARAH E. REDFIELD — Ms. Redfield is presently a professor at the University of New Hampshire School of Law, and served as the interim director of CaliforniaALL. Events surrounding Redfield, as shown below, also appear to be imbued with fraud and deceit, and it appears her role was to create a subterfuge to justify the existence of CaliforniaALL. Since CaliforniaALL’s main achievement was the purported creation of a “Saturday Academy of Law” at UC Irvine (“SALUCI”), Ms. Redfield pretended to have engaged in Requests for Proposals (“RFP”), as well as falsely claiming that she “launched” SALUCI. For her services as interim executive director and an alleged consultant of CaliforniaALL, Professor Redfield was paid approximately $160,000 as an “independent contractor.” She gave very little, if anything, in return for the $160,000 she was paid. In fact, she took credit for the extremely hard work of others, especially that of Rob Vacario of Santa Ana who co-founded SALUCI several years earlier.

    12. JUDY JOHNSON – Ms. Johnson is the former Executive Director of the State Bar of California. Ms. Johnson (along with Robert Hawley and Starr Babcock) is no stranger to financial schemes. For the past 8 years, she has been quietly serving as the president of an entity with a misleading name (California Consumer Protection Foundation AKA “CCPF”). This entity absorbed close to $30 million in class action cy pres awards, as well as fines and settlements imposed by the CPUC on utility companies. CCPF forwarded those funds to mostly questionable ACORN-like entities in South Los Angeles or to an entity headed by Michael Shames known as UCAN — presently under federal grand jury investigation in San Diego. It appears that Ms. Johnson used her position as executive director of the State Bar of California (which is supposed to supervise and discipline lawyers) as “clout” to obtain cy pres awards from the settlement of class actions prosecuted and defended by various law firms in courts and before the CPUC. In addition, while never prosecuted for the scheme, some have speculated that Johnson and cohorts Hawley (whom Johnson labeled the “Wizard of OZ”) and Babcock were “in” on a financial scheme perpetrated by former State Bar employee Sharon Pearl, who was lightly prosecuted by then-attorney general Jerry Brown, cousin of Geoffrey Brown.

    Ms. Johnson was part of CaliforniaALL’s Advisory Council and was responsible for maintaining secrecy over the project by misleading the public, including a quadriplegic law-student, litigant Sara Granda.

    13. RUTHE CATOLICO ASHLEY — Ms. Ashley is a former employee of McGeorge School of Law who later served as a “Diversity Officer” at Cal PERS. Ms. Ashley also served as member of the State Bar of California Board of Governors alongside Mr. Bleich, and came up with the idea to create CaliforniaALL during a meeting with Sarah Redfield and Peter Arth, Jr. (the assistant to CPUC President Michael Peevey). After CaliforniaALL came into existence, Ms. Ashley, after a simulated search, was selected to serve as CaliforniaALL’s executive director.

    14. SONIA GONZALES — Ms. Gonzales presently serves as the Foundation’s executive director as of earlier this year, after the former executive director (Ms. Leslie Hatamyia) suddenly quit. Ms. Gonzales is a close friend and confidante of Ms. Maya Harris, the wife of Mr. Tony West.

    She presently serves the same function as current Foundation directors Mary Ann Todd of Munger Tolles & Olson, Jon Streeter of Keker & Van Nest, Douglas Winthrop of Howard Rice, Richard Tom of Southern California Edison, and Raj Chatterjee of Morrison & Foerster.

    15. JOE DUNN — Mr. Dunn is the creator of online publication “Voice of OC” – Orange County’s Nonprofit Investigative News Agency. He is also a Trustee of the UCI Foundation (an entity which obtained funds from a separate charitable entity known as CaliforniaALL (FEIN Number 51-0656213). Presently, Dunn serves as Executive Director of the State Bar of California – an entity which also controls and maintains a foundation known as the California Bar Foundation. The California Bar Foundation very quietly transferred close to $780,000 to CaliforniaALL. Previously, In his role as a politician and business partner of Martha Escutia, Dunn was involved in matters relating to utility companies operating in California.

    16 . GEOFFREY BROWN – a former commissioner with the CPUC and former board member of the California Bar Foundation. While at the CPUC, Brown was the assigned commissioner in the application Edison International/ Southern California Edison — owners of San Onofre Nuclear Generating Station (SONGS) – submitted to the CPUC for authorization: (1) to replace SONGS 2 & 3 steam generators; (2) establish ratemaking for cost recovery; and (3) address other related steam generator replacement issues.

    Messrs. Geoffrey Brown, Michael Peevey, and Peter Arth were also involved in countless proceedings involving California energy crisis. Those proceedings were mainly litigated by the law offices of Munger Tolles & Olson (representing Southern California Edison), Morrison & Foerster, Keker & Van Nest (representing PG&E), DLA Piper (representing Sempra Energy — owner of San Diego Gas & Electric). At times, said proceedings concluded in settlements worth billions of dollars.

    Previously, I asked the State Bar of California to investigate this matter. Within a few hours of sending the request, Geoffrey Brown sent me a demand to cease and desist from insisting that he had done anything wrong under threat of litigation. In essence, Brown wanted me to ignore the circumstances dealing with the fact that he was both a CPUC Commissioner and a Director with the Foundation when it quietly made the largest grant in its history to an entity that was conceived by CPUC’s Peter Arth to absorb hundreds of thousands of dollars from utility companies.

    FACTUAL BACKGROUND:

    In approximately 2007, Ruthe Catolico Ashley — an attorney from Sacramento and a member of the State Bar of California Board of Governors — was employed by Cal PERS as a “Diversity Officer.” Prior to her employment with Cal PERS, Ms. Ashley was employed as a career counsel at McGeorge School of Law in Sacramento. While at McGeorge, Ms. Ashley met diversity expert Sarah Redfield. At that time, Jeffrey Bleich of Munger Tolles & Olson was serving as President of the State Bar. Both Bleich and Ashley are politically active, and were supporting the 2008 campaign of Barack Obama for President. Ruthe Ashley was involved in the Asian-Americans for Obama branch in Sacramento.

    In April 2007, Ashley and Sarah Redfield were urged to meet Peter Arth, Jr. of the California Public Utilities Commission at a restaurant in San Francisco. During that meeting, the idea to create CaliforniaALL (initially named CaAAL or CaALL) was conceived. Eventually, Cal PERS, the CPUC, and the State Bar of California endorsed in principle the creation of CaliforniaALL – a Section 501(c)(3) entity that would raise funds to be used to support a more diverse workforce in California.

    At that time, both Ashley and Redfield were also part of the State Bar of California’s Council on Fairness and Access, as well as a separate project by the State Bar of California known as The Diversity Pipeline Task Force, through which both presumably amassed vast amounts of data and information on the topic of diversity pipeline projects.

    Subsequent to the meeting with Peter Arth, on June 26, 2007 State Bar BOG member Ruthe Catolico Ashley and Patricia Lee presented to the entire BOG a proposal (see http://www.scribd.com/doc/48713393/1-In-June-26-2007-Member-of-State-Bar-Board-of-Governors-Ruthe-Ashley-Presen ) urging the BOG to support the creation of California Aspire Achieve Lead Pipeline Project (CaAAL), later named CaliforniaALL.

    For reasons that are not clear to me, Jeffrey Bleich saw fit to call an urgent, emergency-like meeting of the State Bar of California Board of Governors, Committee on Operations in order to appoint Peter Arth of the CPUC as member of the State Bar of California’s Council on Fairness and Access. See: http://www.scribd.com/doc/103136304/2nd-Upload-of-Document-Peter-Arth-Assistant-of-CPUC-s-Michael-Peevey-Emergen

    Papers were filed with both state and federal agencies to allow CaliforniaALL to operate as a tax exempt entity. Victor Miramontes listed himself as Chairman of the Board, and Sarah E. Redfield served as CaliforniaALL’s interim executive director for a period of 6 months. Serving as CaliforniaALL’s legal counsel were Susan Mac Cormac and Eric Tate of Morrison & Foerster.

    Despite the fact that she served as interim executive director, and despite the fact that it was a given that Ruthe Catolico Ashley would be hired as the permanent CEO, Sarah Redfield nevertheless apparently engaged in an RFP (request for proposal) which was closed just as quickly as it started even before Ms. Ashley was hired as the permanent CEO.

    CaliforniaALL’s web site (www.calall.org) stated:

    “Saturday Law Academy RFP

    PLEASE NOTE:

    The application process for this RFP is closed. Please contact Sarah Redfield at sarah.redfield@gmail.com or (207) 752-1721.

    RFP PROPOSAL INFORMATION

    California ALL seeks proposals to implement its law career pathway starting with the 2008-09 academic year (AY).

    The following and attached document describes a program area in which California ALL has particular interest based on its initial research. An additional RFP will follow for college level prelaw work. Self generated proposal for other parts of the pipeline will also be considered, and another round of RFPs is possible. California ALL has not attached a specific dollar amount to the RFP, though cost effectiveness and the presence of a competitive match will be part of its consideration. California ALL has some funding in hand from a generous grant from Verizon for the Saturday Academy and intends to seek additional funding as needed to support programs selected. It is anticipated that funding will be provided for year one of the (3 year) proposal, with following years contingent on successful completion of the prior year(s). ”

    The California Attorney General RCT reflects that CaliforniaALL obtained its “Charity” status on March 14, 2008 (FEIN Number 510656213). The address for CaliforniaALL is listed as 400 Capitol Mall, Suite 2400, Sacramento, California. This is actually the address of the law firm of DLA Piper, where CaliforniaALL resided free of charge courtesy of partner Steven Churchwell – an attorney specialized in the representation of political entities.

    CaliforniaALL’s 2008 tax-return shows an expense of around $16,000 for “occupancy.” See http://www.scribd.com/doc/48714110/6-CaliforniaALL-2008-Tax-Return

    In June 2008, after a nationwide search and aided by a pro bono head-hunting firm in its search for a permanent CEO, CaliforniaALL not surprisingly hired Ruthe Catolico Ashley as its chief executive officer. (See Press Release http://www.scribd.com/doc/48717715/5-California-ALL-Announces-Hiring-of-Ruthe-Ashley-as-CEO-on-June-4-2008 )

    As the purpose of CaliforniaALL was to transfer funds forward, it did so by awarding small grants to the UCI Foundation (FEIN Number 952540117), where State Bar of California executive director Joe Dunn serves as trustee and chair of the Audit Committee, for the purported purpose of establishing a Saturday Law Academy at UC Irvine known as SALUCI.

    Sarah Redfield’s CV, which states (falsely) that she launched SALUCI, can be found at: http://www.scribd.com/doc/48772426/10-Resume-CV-of-University-of-New-Hampshire-School-of-Law-Professor-Sarah-E-

    In September 2009, Ruthe Catolico Ashley exited CaliforniaALL (http://www.scribd.com/doc/48713268/7-Ruthe-Ashley-Announces-Departure-from-CaliforniaALL-in-September-of-2009 ), the entity which she previously proclaimed to Diane Curtis that it “will change the face of the future in the workplace and of our leaders,” “will be a model for other states,” and “is here to stay for the foreseeable future.”

    Ultimately, the following events prompted me to ask Voice of OC to make its tax returns available for my review, as required by IRS regulations: the sham RFP by Sarah Redfield, who pre-selected the UCI Foundation as the only recipient of funds from CaliforniaALL; Joe Dunn served as chair of the UCI Foundation audit committee; in September 2009 Ruthe Ashley abruptly exited CaliforniaALL; in September 2009 Joe Dunn (together with his business partner Martha Escutia, James Brosnahan — who created CaliforniaALL, and Thomas Girardi of In Re Girardi, Erin Brokovich, and the one who James Towery appointed his personal attorney (Jerome Falk of Howard Rice) to act as special prosecutor against him) launched an online “news agency” known as Voice of OC. I also suspected that James Brosnahan of Morrison & Foerster (who represented various utility companies during California’s energy crisis) may have engaged in a scheme with Joe Dunn, as Dunn was the person investigating those utility companies and California’s energy crisis. In fact, Dunn was discredited by the media for claiming that he was the one who “cracked” Enron.

    Voice of OC ignored my request for its tax records, whereupon I filed a complaint with the IRS. To date, I have not received a response from the IRS indicating that it has taken any steps to help me obtain those much needed records and impose the appropriate sanctions against Voice of OC.

    Nevertheless, I continued with the inquiry as large pieces of the puzzle were missing. Later, when Mr. Tony West was appointed third in command at the DOJ, I learned of his identity due to wide media coverage and his association with Morrison & Forester and James Brosnahan. From there, it became harder to ignore the common denominator of “OBAMA FOR AMERICA” involving James Brosnahan, Tony West, Chris Young, Annette Carnegie, and Susan Mac Cormac (of Morrison & Foerster) Geoffrey Bleich, Ron Olson (of Munger Tolles & Olson) Steven Churchwell ( of DLA Piper) in conjunction with Kamala Harris — which is that money originating from utility companies was misappropriated or laundered through the California Bar Foundation / CaliforniaALL to the campaign of “OBAMA FOR AMERICA.”

    Other then collecting close to $2 million directly from utility companies (including the “hush-hush” transfer of $774,247, comprised of one installment of $5000 and another contribution of $769,247 from the Foundation which was never mentioned in the Foundation’s “newsroom” or by any other of its publications such as the California Bar Journal or by any of the newsletters and alerts published by CaliforniaALL), CaliforniaALL appears to have been be a sham, phantom entity from its inception in 2008 to the day it began to slowly be dissolved in approximately 2009, subsequent to the election of Barack Obama as president of the U.S. Its only alleged achievement was providing some money for the creation of the Saturday Academy of Law at UC Irvine (“SALUCI”) in approximately 2008-2009. Here too vast and intense suspicious circumstances exist as the funds from CaliforniaALL actually went to the UC Irvine Foundation, where the present executive director of the State Bar of California (Senator Joe Dunn) serves as a member of the audit committee, and it turns out that the SALUCI was actually already created in 2005 and was fully operational before CaliforniaALL arrived on the scene. In addition, some records seem to indicate that Verizon Wireless funneled the money directly to SALUCI , while CaliforniaALL took the credit.

    Specifically, the Foundation reported to the IRS that REVENUE LESS EXPENSES in 2007 equaled plus +$373.842.00. However, in 2008, the Foundation reported to the IRS that REVENUE LESS EXPENSES equaled minus -$537,712. In its 2008 Annual Report (See page 9 : http://www.scribd.com/doc/48712884/3-2008-Annual-Report-of-Foundation-of-the-State-Bar-of-California-Foundation ), the Foundation alludes to CaliforniaALL by stating:

    “In 2007-2008, the Foundation supported the launching of CaliforniaALL and, as the project filed for incorporation and 501(c)(3) tax-exempt status, served as CaliforniaALL’s fiscal sponsor. A collaboration between the California Public Employment Retirement System, the California Public Utilities Commission, the California Department of Insurance, and the State Bar of California, CaliforniaALL was created in an effort to close the achievement gap among California students from preschool to the profession and, specifically, to bolster the pipeline of young people of diverse backgrounds headed for careers in law, financial services, and technology. Once CaliforniaALL obtained its tax-exempt status and was able to function as a fully independent nonprofit organization, the foundation granted the balance of funds raised for the project – totaling $769,247 – to the new entity.”

    Also cleverly buried in the California Bar Foundation’s 2008 annual report was the following sentence :

    “We thank the following corporations for their gifts in support of CaliforniaALL:

    AT & T

    Edison International

    PG & E Corporation Foundation

    Verizon”

    See page 24 : http://www.scribd.com/doc/48712884/3-2008-Annual-Report-of-Foundation-of-the-State-Bar-of-California-Foundation

    While I was able to ascertain from California Bar Foundation’s tax records an “exit” of the $774,247 in 2008 (the apparent source of which was allegedly the above-referenced 4 utility companies), I was unable to ascertain when and where the Foundation reported to the IRS — either in 2008 or 2007 or 2006 or 2005 — an “entry” of those funds which it allegedly held in trust for CaliforniaALL.

    (Later, Jill Sperber of the State Bar of California, in a letter she sent to me dated July 28, 2011 claimed that “….No State Bar or California Bar Foundation funds were used for CaliforniaALL creation…The California Bar Foundation served as CaliforniaALL’s escrow holder only to hold fundraising funds before its formal incorporation… Once CaliforniaALL was formed as a non-profit entity, the funds were paid over to it…”

    Most troubling, however, is the fact that Verizon did not report to the IRS either in 2007 or 2008 that it had contributed any money to the California Bar Foundation or CaliforniaALL. See :

    http://www.scribd.com/doc/102325087/Verizon-Foundation-IRS-990-Year-2007
    http://www.scribd.com/doc/102325330/Verizon-Foundation-IRS-990-Year-2008

    As such, several days ago, on August 22, 2012, in search of the truth, Edison was duly served with a request for production of IRS Form 990, Form 990 Schedule A, and Form 1023. On August 30, 2012 Edison stated that it does not plan to comply with the request.

    In view of the above, I urge you to investigate this matter to determine whether Edison’s refusal violated IRS rules and regulations. I ask that you impose appropriate sanctions against any and all involved, if supported by the results of your investigation.

    I look forward to your response. Please feel free to contact me if you have any questions or need additional information.

  • Wilson Sonsini Goodrich & Rosati’s Larry Sonsini Asked to Conduct Formal Investigation Into Actions of John Roos, Mark Parnes:

    Mr. Sonsini:

    In that I entertain thoughts that around 2007-2008 John Roos and Mark Parnes may have participated in a scheme to embezzle and/or launder money from/through the California Bar Foundation in conjunction with non-profit entity CaliforniaALL to benefit “Obama for America”, this will serve to discuss the following:

    Unlike James Brosnahan, Tony West, Annette Carnegie, Chris Young,
    Susan Mac Cormac (of Morrison & Foerster), Ron Olson, Jeff Bleich,
    Brad Phillips (of Munger Tolles & Olson), Steven Churchwell (of DLA
    Piper), Kamala Harris, Judy Johnson, and Holly Fujie — where
    evidence provides a clear enmeshment between the actors, the firm, as
    well as an intense desire by the clients (i.e.Southern California
    Edison, PG&E, Sempra Energy) to finance the scheme; as far as Messrs. Roos and Parnes, I don’t see the same level of involvement on your part, your firm, or any your clients.

    Nevertheless, I must ask Wilson Sonsini to conduct a formal
    investigation into the past actions of Messrs. Parnes and Roos.
    Specifically, while Mr. Parnes served as director and secretary of the
    California Bar Foundation, the Foundation reported to the IRS that
    REVENUE LESS EXPENSES in 2007 equaled plus +$373.842.00. However, in 2008, the Foundation reported to the IRS that REVENUE LESS EXPENSES equaled minus -$537,712 .

    In its 2008 Annual Report, the Foundation offers an excuse as to the
    negative balance (See page 9:
    http://www.scribd.com/doc/48712884/3-2008-Annual-Report-of-Foundation-of-the-State-Bar-of-California-Foundation
    )by stating:

    “In 2007-2008, the Foundation supported the launching of CaliforniaALL
    and, as the project filed for incorporation and 501(c)(3) tax-exempt
    status, served as CaliforniaALL’s fiscal sponsor. A collaboration
    between the California Public Employment Retirement System, the
    California Public Utilities Commission, the California Department of
    Insurance, and the State Bar of California, CaliforniaALL was created
    in an effort to close the achievement gap among California students
    from preschool to the profession and, specifically, to bolster the
    pipeline of young people of diverse backgrounds headed for careers in
    law, financial services, and technology. Once CaliforniaALL obtained
    its tax-exempt status and was able to function as a fully independent
    nonprofit organization, the foundation granted the balance of funds
    raised for the project – totaling $769,247 – to the new entity.”

    Also cleverly buried in the California Bar Foundation’s 2008 annual
    report was the following sentence :

    “We thank the following corporations for their gifts in support of
    CaliforniaALL:

    AT & T

    Edison International

    PG & E Corporation Foundation

    Verizon”

    See page 24 : http://www.scribd.com/doc/48712884/3-2008-Annual-Report-of-Foundation-of-the-State-Bar-of-California-Foundation

    Unfortunately, while I able to ascertain from Foundation’s tax records
    an “exit” of the $774,247 in 2008 (the apparent source of which was
    allegedly the above-referenced 4 utility companies), I was unable to
    ascertain when and where the Foundation reported to the IRS — either in 2008 or 2007 or 2006 or 2005 — an “entry” of those funds which it allegedly held in trust for CaliforniaALL.

    Also troubling, for example, is the fact that Verizon did not report
    to the IRS either in 2007 or 2008 that it had contributed any money to
    the California Bar Foundation or CaliforniaALL. See :

    http://www.scribd.com/doc/102325087/Verizon-Foundation-IRS-990-Year-2007
    http://www.scribd.com/doc/102325330/Verizon-Foundation-IRS-990-Year-2008

    Other then collecting close to $2 million directly from utility
    companies (including the “hush-hush” transfer of $774,247, comprised
    of one installment of $5000 and another contribution of $769,247 from
    the Foundation which was never mentioned in the Foundation’s
    “newsroom” or by any other of its publications such as the California
    Bar Journal or by any of the newsletters and alerts published by
    CaliforniaALL), CaliforniaALL appears to have been be a sham, phantom
    entity from its inception in 2008 to the day it began to slowly be
    dissolved in approximately 2009, subsequent to the election of Barack
    Obama as president of the U.S. Its only alleged achievement was
    providing some money for the creation of the Saturday Academy of Law
    at UC Irvine ("SALUCI") in approximately 2008-2009.

    Here too vast and intense suspicious circumstances exist as the funds
    from CaliforniaALL actually went to the UC Irvine Foundation, where
    the present executive director of the State Bar of California (Senator
    Joe Dunn) serves as a member of the audit committee, and it turns out
    that the SALUCI was actually already created in 2005 and was fully
    operational before CaliforniaALL arrived on the scene. In addition,
    some records seem to indicate that Verizon Wireless funneled the money
    directly to SALUCI , while CaliforniaALL took the credit.

    CaliforniaALL was conveniently housed free of charge at the offices of
    DLA Piper in Sacramento, alongside the draft committee of OBAMA FOR
    AMERICA . Steve Churchwell of DLA Piper in Sacramento served as
    Treasurer of the draft committee of OBAMA FOR AMERICA.

    As matters presently stand, and while other potential explanations
    certainly exist, my inquiry leads me to suspect that in 2007 - 2008
    the following actors:

    Morrison & Foerster’s James Brosnahan (self-proclaimed “mastermind
    behind the Democratic Party”),

    Morrison & Foerster’s Tony West (Barack Obama’s Chair of California
    Finance Committee),

    Morrison & Foerster’s Chris Young ("Obama for America" Northern
    California Deputy Finance Director) ,

    Morrison & Foerster’s Annette Carnegie ( 2007-2008 director with the
    California Bar Foundation),

    Munger Tolles & Olson’s Jeff Bleich (president of the State Bar of
    California, director with the California Bar Foundation, founding
    member and Chair of Barack Obama’s National Finance Committee),

    Munger Tolles & Olson’s Brad Phillips (2007-2008 director with the
    California Bar Foundation),

    DLA Piper’s Steven Churchwell (Treasurer, draft committee of OBAMA FOR
    AMERICA) ,

    Wilson Sonsini’s Mark Parnes ( 2007-2008 director and secretary of
    the California Bar Foundation),

    Wilson Sonsini’s John Roos ( friend of Jeff Bleich, “bundler” for
    Barack Obama) ,

    Kamala Harris (Obama for America, CaliforniaALL),

    may have participated in a scheme to misuse the California Bar
    Foundation/CaliforniaALL for the purpose of embezzling /laundering
    funds originating from utility companies which were unlawfully
    misdirected to Obama for America.

    Thank you for your time. If you have any questions, please do not
    hesitate to have your assistant contact me.

  • GOOD Ol’ BOYS

    Ronald Leroy Olson is a man proud of his humble Iowa background. Like his two close friends and business partners from across the Missouri River in Omaha, Nebraska — Warren Buffett and Charlie Munger —Olson prefers to not flash his wealth and engage in conspicuous consumption.

    Given the opportunity, Olson will boast about his upbringing in Iowa, which he claims instilled in him an honest work ethic. To hear him talk, one would often believe that Olson is a good-ol’ country farmer who sweats profusely while tilling the land and fears the limelight lest it fade his suit, rather than the shrewd, well-connected attorney who sits on the board of Berkshire Hathaway, Edison International, Southern California Edison, City National Corporation, The Washington Post Company, Western Asset Trusts, RAND Corporation, the Mayo Clinic, and the Council of Foreign Relations, or the attorney who in his spare time practices law out of Los Angeles-based Munger Tolles Olson on behalf of Berkshire Hathaway, Edison International, Southern California Edison, Western Asset Trust, and many other entities such as The Yucaipa Company, Hollywood studios, and other major banks and utility companies. (A similar tactic is used by Warren Buffett, who portrays himself as the harmless average Joe who drinks 5 cans of Cherry Coke a day and spends his time playing bridge.) Gold? That’s for Jews to sew into their garments, Charlie Munger declared recently. We are into value investing in productive and honest businesses. Greed ? Speculation? Hollywood? Churning ? Control and influence over banks, monetary policies, the media, utilities, and the government? Not us, no sirree Bob.

    WAR STORY TIME

    The second-in-command at Berkshire Hathaway — Charlie Munger — is not currently actively practicing law, although he holds the position of “of counsel” at Munger Tolles & Olson — a firm previously described by various media outlets as the best law firm in the country with an army of lawyers ready to wage war, and whose client list includes Berkshire Hathaway, Verizon Communication, and Southern California Edison.

    Those warring lawyers often win various awards and designations by major California legal newspapers such as the “Los Angeles Daily Journal” and “San Francisco Daily Journal,” coincidentally owned by Charlie Munger, one of the founding fathers of Munger Tolles & Olson.

    Other corporate law firms operating in California with large books of business from major utility companies include Northern California-based Morrison & Foerster (PG&E, El Paso), Keker & Van Nest (PG&E), DLA Piper (Sempra Energy, owner of San Diego Electricity ), and now-defunct Howard Rice (PG&E), which is now part of Arnold & Porter.

    Beginning in 2000, these law firms were busy defending utility companies in the countless lawsuits and monumental proceedings stemming from California’s energy crisis. A unique features of those law firms is a tendency to obscure their corporate practices (i.e. defending tobacco companies, banks, utilities, mortgage companies) from public view. Instead, they would rather publicize their effort to promote diversity, and their alleged contributions to equal rights for all. For example, in the “Prop 8 marriage cases” Keker & Van Nest, Munger Tolles & Olson, Howard Rice, and Morrison & Foerster played pivotal roles. However, and although I may be mistaken, a quick review of Morrison & Foerster’s website listings for its California offices does not show even one male, African-American attorney working in California; moreover, Howard Rice has been sued for rescinding an offer of employment to a Latina attorney on the grounds of downsizing, only to continue to hire white men.

    Those firms which represented the utility companies during California energy crisis, and the class-action plaintiffs’ firms who sued on behalf of consumers (such as Girardi & Keese and Cotchett Pitre & McCarthy) developed a penchant for congregating around the State Bar of California, and more specifically the California Bar Foundation. At times, strange though it may seem, two representatives from the same firms would serve as directors of the California Bar Foundation, as was the case in 2007-2008 when Jeff Bleich and Bradley Phillips of Munger Tolles & Olson served as directors, or currently where there are two directors from Arnold Porter.

    A GOLDEN CAPED SUPERMAN

    In 2007, Jeffrey Bleich was a ready-to-wage-war attorney working for Ronald Leroy Olson at Munger Tolles & Olson who was dubbed by some media outlets as Superman.

    Bleich (if you believe Charlie Munger, while he had gold sewed into his cape) launched and co-chaired the national finance committee of Obama for America. Other attorneys from law firms representing utility companies seeking to place Obama in office because they hoped he would support the Smart-Grid and clean energy initiatives followed suit. Steven Churchwell of DLA Piper in Sacramento , James Brosnahan, Tony West and Chris Young of Morrison & Foerster, Kamala Harris (a protege of Willie Brown - a lackey of PG&E), and Doug Scrivner (who served as chief legal counsel of Accenture- a relatively unknown yet powerful entity) organized to push for the election of Barack Obama on behalf of those seeking to promote green energy.

    At that time, Bleich was on a mission to put Obama in office on behalf of utility companies. The cover story was that Bleich and Obama are “good friends” ever since Bleich was asked to recruit Obama as clerk for appellate court Justice Abner Mikva.

    Bleich — while serving as member of the State Bar of California Board of Governors and as director of the California Bar Foundation (alongside another war ready, gold sewing attorney from Munger Tolles, Bradley Phillips) — was a man on a mission.

    SMART GREED

    While an officer at the State Bar of California, Jeffrey Bleich and James Brosnahan were instrumental in pushing for the urgent creation of a non-profit entity known as CaliforniaALL.

    My inquiry into CaliforniaALL began close to one year ago when I stumbled upon unusually large and highly peculiar financial transactions in conjunction with what appeared to me to be clear attempts to conceal and mislead. In order to deflect potential allegations that I am motivated by politics, I wish to assure the readers that my inquiry into these issues was not and is not motivated by politics. In fact, the only actor that I have ever met is James Brosnahan, who I met once for a short period of time while a volunteer with BASF - VLSP, a volunteer organization that awarded me a volunteer of the year award.

    In 2010, the United States Federal Court of Appeal for the Ninth Circuit issued its final ruling in the disciplinary matter of In Re Girardi by imposing close to $500,000 in sanctions on Walter Lack of Engstrom Lispcomb & Lack and Thomas Girardi of Girardi & Keese stemming from an attempt to defraud the court and cause injury to Dole Food Company in the underlying litigation. You may have heard of Walter Lack and Thomas Girardi as they are the lawyers who were featured in the movie “Erin Brokovich” involving utility company PG&E.

    The court ruled that Walter Lack (who stipulated to special prosecutor Rory Little that his prolonged acts of misconduct were intentional) and Thomas Girardi intentionally and recklessly resorted to the use of known falsehoods for years. The Ninth Circuit ordered Girardi and Lack to report their misconduct to the State Bar of California.

    The State Bar of California disqualified itself from handling the matter since Howard Miller (of Girardi & Keese) served at that time as its president, and had also made the decision to hire then-chief prosecutor, James Towery.

    Mr. Towery, in turn, appointed Jerome Falk of Howard Rice (now Arnold & Porter) as outside “special prosecutor” to determine whether or not to bring charges against Girardi and Lack. (Mr. Falk is a colleague of Douglas Winthrop, and both represented PG&E in its massive bankruptcy proceedings.)

    Mr. Falk, in turn, exercised prosecutorial discretion and concluded that he did not believe Lack acted intentionally and that no charges will be brought against the two attorneys.

    Within days of Mr. Falk’s decision, I filed an ethics complaint with the State Bar of California against Jerome Falk, James Towery, Howard Miller, and Douglas Winthrop (managing partner of Howard Rice and then-elected president of the Foundation), alleging that it was improper for Mr. Towery to appoint Mr. Falk given the close personal relationship between Howard Miller and Douglas Winthrop. Specifically, Howard Miller — in his capacity as president of the State Bar — had appointed Douglas Winthrop as president of the California Bar Foundation, a foundation maintained and controlled by the State Bar. (Much later I also discovered that Jerome Falk is actually the personal attorney of Thomas Girardi, and that Howard Rice and Jerome Falk represented Walter Lack, Thomas Girardi, Engstrom Lispcomb & Lack, and Girardi & Keese in approximately 2007, and for a period of 2 years, in a malpractice action.)

    As such, while at the time I was not familiar with those individuals, I reviewed the Foundation’s annual reports to familiarize myself with the names of the Foundation’s board of directors, and to try to resolve various inconsistencies regarding who was serving as the Foundation’s president and why Robert Scott Wylie appeared to be the president when data showed that he had relocated to Indiana in 2006. I checked the Foundation’s tax returns and it was then that I fortuitously stumbled upon the fact that the Foundation ended 2008 close to $500,000 in the negative. Specifically, the Foundation reported to the IRS that REVENUE LESS EXPENSES in 2007 equaled plus +$373.842.00. However, in 2008, the Foundation reported to the IRS that REVENUE LESS EXPENSES equaled minus -$537,712.

    In its 2008 Annual Report (See page 9 : http://www.scribd.com/doc/48712884/3-2008-Annual-Report-of-Foundation-of-the-State-Bar-of-California-Foundation ), the Foundation alludes to CaliforniaALL by stating:

    “In 2007-2008, the Foundation supported the launching of CaliforniaALL and, as the project filed for incorporation and 501(c)(3) tax-exempt status, served as CaliforniaALL’s fiscal sponsor. A collaboration between the California Public Employment Retirement System, the California Public Utilities Commission, the California Department of Insurance, and the State Bar of California, CaliforniaALL was created in an effort to close the achievement gap among California students from preschool to the profession and, specifically, to bolster the pipeline of young people of diverse backgrounds headed for careers in law, financial services, and technology. Once CaliforniaALL obtained its tax-exempt status and was able to function as a fully independent nonprofit organization, the foundation granted the balance of funds raised for the project – totaling $769,247 – to the new entity.”

    Also cleverly buried in the California Bar Foundation’s 2008 annual report was the following sentence :

    “We thank the following corporations for their gifts in support of CaliforniaALL:

    AT & T

    Edison International

    PG & E Corporation Foundation

    Verizon”

    See page 24 : http://www.scribd.com/doc/48712884/3-2008-Annual-Report-of-Foundation-of-the-State-Bar-of-California-Foundation
    *

    While I was able to ascertain from Foundation’s tax records an “exit” of the $774,247 in 2008 (the apparent source of which was allegedly the above-referenced 4 utility companies), I was unable to ascertain when and where the Foundation reported to the IRS — either in 2008 or 2007 or 2006 or 2005 — an “entry” of those funds which it allegedly held in trust for CaliforniaALL.

    (Later, Jill Sperber of the State Bar of California, in a letter she sent to me dated July 28, 2011 claimed that “....No State Bar or California Bar Foundation funds were used for CaliforniaALL creation...The California Bar Foundation served as CaliforniaALL’s escrow holder only to hold fundraising funds before its formal incorporation... Once CaliforniaALL was formed as a non-profit entity, the funds were paid over to it...”

    Most troubling, however, is the fact that Verizon did not report to the IRS either in 2007 or 2008 that it had contributed any money to the California Bar Foundation or CaliforniaALL. See :

    http://www.scribd.com/doc/102325087/Verizon-Foundation-IRS-990-Year-2007
    http://www.scribd.com/doc/102325330/Verizon-Foundation-IRS-990-Year-2008

    Ultimately, by conducting further research into the actors and events surrounding the Foundation, CaliforniaALL, and related entities, individuals, and events, I unearthed what appears to be a lengthy trail of attempts to mislead and defraud.

    CaliforniaALL - Obama for America

    In approximately 2007, Ruthe Catolico Ashley — an attorney from Sacramento and a member of the State Bar of California Board of Governors — was employed by Cal PERS as a “Diversity Officer.” Jeffrey Bleich of Munger Tolles & Olson was serving as President of the State Bar. Both Bleich and Ashley are politically active, and were supporting the 2008 campaign of Barack Obama for President. Ruthe Ashley was involved in the Asian-Americans for Obama branch in Sacramento.

    In April 2007, Chief of Staff to CPUC’s President Michael Peevey, Peter Arth, Jr. urged Ruthe Catolico Ashley to meet him at a restaurant in San Francisco. During that meeting, the idea to create CaliforniaALL (initially named CaAAL or CaALL) was conceived.

    In its brief existence, CaliforniaALL collected close to $2 million from utility companies (AT&T, PG&E, Verizon, Sempra, Southern California Edison), including a sub-rosa "hush -hush"contribution of $769,247.00 from the California Bar Foundation — —CaliforniaALL appears to have been be a sham, phantom entity.

    CaliforniaALL was conveniently housed free of charge at the offices of DLA Piper in Sacramento, alongside the draft committee of OBAMA FOR AMERICA . Steve Churchwell of DLA Piper in Sacramento served as Treasurer of the draft committee of OBAMA FOR AMERICA.

    Subsequent to the election of Barack Obama, CaliforniaALL was dissolved.

    As matters presently stand, my inquiry leads me to suspect that in 2008 Morrison & Foerster attorneys:

    James Brosnahan (self-proclaimed "mastermind behind the Democratic Party.),

    Tony West (Barack Obama’s Chair of California Finance Committee),

    Chris Young ("Obama for America" Northern California Deputy Finance Director)

    Annette Carnegie (former director with the California Bar Foundation

    In conjunction with:

    Kamala Harris (Co-Chair, Obama for America ; member of CaliforniaALL)

    Jeffrey Bleich (Munger Tolles & Olson, president of the State Bar of California, director with the California Bar Foundation, founding member and Chair of Barack Obama’s National Finance Committee)

    Steven Churchwell ( DLA Piper, Treasurer, draft committee of OBAMA FOR AMERICA)

    Executed a sophisticated financial scheme to misuse all or part of the “hush-hush” $780,000.00 originating from the California Bar Foundation by improperly transferring the money to Barack Obama’s coffers via a separate foundation created ad hoc by Susan Mac Cormac of Morrison & Foerster — CaliforniaALL.

    CaliforniaALL - The San Onofre Nuclear Generating Station (SONGS)

    Given the above suspicious circumstantial evidence surrounding CaliforniaALL, due to recent wide media coverage dealing with the San Onofre Nuclear Generating Station (SONGS), I begun to also entertain thoughts that the owner of SONGS (Edison International and Sempra Energy) as well as the law firms which represent Edison International and Sempra Energy (Munger Tolles & Olson and DLA Piper, respectively) may have also taken the opportunity to misuse the California Bar Foundation / CaliforniaALL to bribe CPUC officials in matters relating to SONGS.

    Specifically, serving alongside Jeffrey Bleich and Bradley Phillips as director of the California Bar Foundation was also CPUC Commissioner Geoffrey Brown, cousin of California Governor Jerry Brown.

    See bottom page: http://www.scribd.com/doc/48712884/3-2008-Annual-Report-of-Foundation-of-the-State-Bar-of-California-Foundation

    As a reminder, while Jeff Bleich, Bradley Phillips and CPUC Commissioner Geoffrey Brown served as director of the California Bar Foundation an unusually large and unexplained sum of money (courtesy of utility companies) was allocated to be transferred to CaliforniaALL — an entity created through the urging of Peter Arth of the CPUC.

    Incidentally, during the same time period, Geoffrey Brown was the assigned commissioner in the application Edison International/ Southern California Edison submitted to the CPUC for authorization: (1) to replace SONGS 2 & 3 steam generators; (2) establish ratemaking for cost recovery; and (3) address other related steam generator replacement issues.