Rebane's Ruminations
June 2011
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George Rebane

My email has been running torrid over the last day or so with everyone telling me, and everyone else, about the Sac Bee article on ‘hard money’ lending shenanigans in the state, and especially in Nevada County.  “NC Clerk/Recorder Diaz has company regarding questionable dealings while in office.” is a typical message line in those viral emails.

Please, dear readers, let’s not let this latest hot flash confuse or dilute our limited attention spans with what is going on in the AtPac lawsuit.  The hard money lending businesses recently rife in the county, that the Sac Bee says implicates our DA Cliff Newell, is a horse of a significantly different color.  One involves our highest elected officials in an arguable screw-up that brings to question their competence, the other involves alleged criminality in private business dealings that smell to high heaven of fraud (with the added allegation that certain people received “favorable treatment” from the DA’s office).

The AtPac case also has immediacy.  The folks at the Rood Center, our vaunted leadership and defendants in the lawsuit, are into a period of critical strategizing and negotiations with the plaintiff that can spell loss of more good money after the bad money already committed and spent.  And as we have seen from the available evidence, these guys have yet to demonstrate the sterling quality of the their decision making capability.  They tacitly corroborate this assessment by having nurtured this ‘nuisance suit’ into a nightmare while trying to keep a lid on the whole thing.

Meanwhile, the NC hard money caper is still under investigation by everyone from our local constabulary through Sacramento to the feds.  Sac Bee has yet to drop the other shoe in their two-part investigative reporting on the matter.  I think it’s too early to get our undies in a bundle on this one, especially since they already have a couple of good twists in them over the lawsuit that promises to cost us taxpayers some serious bucks before it is settled.  No one has yet provided a hint of a connection between AtPac and hard money.  In my view, job one here is to first gain enough information about the AtPac suit so that we can evaluate the people we elect to govern us.

[6jun2011 update]  The SacBee dropped the other shoe today as reported by Russ Steele on NCMW.  In its second of two articles the newspaper spells out some of the gory details of hard money lending that have gone down in Nevada County.  The attendant graphics in the article help make sense of some complicated stuff and highlight the cast of characters involved.  There is no indication yet of new evidence that would incriminate our DA Cliff Newell.  The Union covers this aspect here.

[14jun2011 update]  The county will enter mediation on the AtPac case on 21 June 2011.  Clerk-Recorder Greg Diaz gave his deposition on 27 May.  In this deposition Mr Diaz gave testimony from his perspective on the events germain to this lawsuit that would presumably identify the who/when of giving Aptitude Solutions access to AtPac software, and the subsequent scrubbing of the county records server.  It appears that the county does not want Mr Diaz's deposition to see the light of day.

Posted in , ,

62 responses to “Competence vs Criminality in Nevada County (updated 14jun2011)”

  1. Bob W Avatar
    Bob W

    Thank you George! That was my point when responding to PE that this AtPac thing had legs. I was trying to point out that PE’s implied link did not exist. The last thing we need now is a diversion. It’s hard enough to keep everyone on point as it is. Sometimes when I read the comments it seems like I am in a grade school.

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  2. George Rebane Avatar

    I should point to Russ Steele’s NCMW which broke the Sac Bee article into our local blogs. There it seems that everyone is hot to investigate everything.
    http://ncwatch.typepad.com/media/2011/06/nevada-county-corruption-in-sac-bee-again.html
    Public attention is bandwidth limited process, and unless someone is willing to (prematurely) tie a nice bow around all the pieces, and make it into one big item under one big headline, all of the separate parts will be diluted and assigned to the low grade ore bin.

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  3. Bob W Avatar
    Bob W

    I get it. My G—-d if I didn’t plant a fertile seed by now then I guess I should just throw the towel in. I’m exhausted.

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  4. Russ Steele Avatar

    George,
    I agree with your assessment, we must not let this dust up with the “hard money and DA” distract us from the Rood Center leadership issues. Although, there may be much more to the “hard money” story as the players are revealed, which may turn out to be some of our community leaders. If this is true, then the leadership issues will get buried in the media blitz. Let’s keep the blogs focused on the leadership issues.

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  5. Mike Thornton Avatar

    Why don’t you just say “Whatever we do, let’s make sure that we try and get rid of Diaz, so our boy Barry, might be able to land one of those lucrative government jobs, we all pretend to hate so much!”
    You guys are like the “one trick pony”.
    The money grubbing capitalists (literally) rob and bankrupt God knows how many “regular” people, corrupting a government official along the way and that’s just a “dust up”
    The people of Nevada County should read what you guys are saying here. Then they would know exactly what you think of them!

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  6. Greg Goodknight Avatar
    Greg Goodknight

    Thornton, somehow, I don’t think the issue motivating George and the other reactionaries is their trying to get a leftish guy out of a nice job so a rightish guy can get in on a gravy train.
    Blowing a million or two of local governmental revenues is a big deal. The local left would do well to get in front of the issue.

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  7. Jeff Pellne Avatar
    Jeff Pellne

    Now that the Newell smear didn’t stick this weekend (Todd Juvinall likes him), the “wingnuts” are back to smearing Diaz. That won’t stick either. Crawl back into your caves. LOL.

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  8. Todd Juvinall Avatar
    Todd Juvinall

    I think Pelline is already in the cave.

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  9. Barry Pruett Avatar

    People are just reiterating what the Bee is reporting after extensive research. Journalism…you have heard of it, right? LOL.

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  10. Todd Juvinall Avatar
    Todd Juvinall

    Barry, I think Pelline etal, the local leftwingnuts portly people, are having a cow. They are conflicted with whose butt to kiss. If we like someone they don’t and vice-versa. That is a tactic my kids used when they were eight. Anyway, the portly ones have scampered back to the twinkie box for one more.

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  11. Jeff Pellne Avatar
    Jeff Pellne

    LOL!

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  12. Greg Goodknight Avatar
    Greg Goodknight

    Jeff, how is Robert Lou settling into his digs on Clay Street?
    “I really have a yen
    To go back once again,
    Back to the place where no one wears a frown,
    To see once more those super-special just plain folks
    In my home town….”

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  13. Mike Thornton Avatar

    You can always count on Todd, to take the high road in any situation, right George?
    I’m sure they’ll be a huge number of the regressives complaining about the use of demeaning terms for people at any minute, right George?
    In fact I’m sure that George himself will take the opportunity to remind people about the type of tone that should exist on RR, right,George
    And the fact still remains that, as usual, just as it is in national politics, “go after the Black guy and try really hard to protect the rich white ones.”

    Like

  14. Todd Juvinall Avatar
    Todd Juvinall

    Why thanks, I do take the high road since anything above a liberal snakes head is the high road.

    Like

  15. John Galt Avatar

    This blog thread has provided another excellent display of the double standards held by The Left.
    –The media is right and accurate (unless it’s reporting criminal behavior of Democrats)
    –Persecute conservatives on false rumors; Defend Democrats despite mountains of evidence.
    –Cast slurs and broad aspersions; attack Conservatives for lacking sensitivity and compassion.

    Like

  16. John Galt Avatar

    George,
    I’m conflicted. I agree that the Newell matter could distract some from the Diaz matter. On the other hand, I don’t think it’s prudent to ignore an extensive year-long investigative report that implies that The Citizen’s attorney (The DA) has been compromised.
    And when you factor in the pressure by the BOS to silence the reporting on the ApPac case, and you factor in other events–I think it’s just possible that the real matter to focus on isn’t merely corruption in the Clerk-Recorder’s office…but rather it’s corruption within our County Government.
    It’s inconvenient and difficult to deal with corruption on multiple fronts, but if you have rats in your home, you can’t correct the problem by getting rid of just one rat. Likewise, resolving our “pest” problem might mean that some of us need to focus on the rodent immediately before us, while others look for the rodent’s companions.

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  17. Paul Emery Avatar
    Paul Emery

    This is the silliest conversation yet on this blog and believe me there’s plenty of competition. Debating about the connections of two things that have nothing to do with each other rather than talking about the issues involved is pretty lame .

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  18. Barry Pruett Avatar

    Paul: I agree with you that these cases are entirely unrelated. However, the public is going to see some stark similarities after more information is available to the public.

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  19. Todd Juvinall Avatar
    Todd Juvinall

    Paul, have you done any news story’s on any of this?

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  20. Mike Thornton Avatar

    Paul:
    You have to look at what was sadi at the start of this post.
    These guys want to try and downplay the Newell story to try and keep the heat on Diaz.
    Why, because this part of a political ploy to get Diaz out and get Barry in.
    Please remember that Barry is directly tied to McClintock, through Barry’s wife and that the local regressives have been trying to get “one of their own” into the Clerk Recorder position for quite some time now.
    And let me also point out that for all the complaints about using demeaning language in making arguments here, George and his regressive buddies, once again, are employing the same double standard that they usually use.
    What a bunch of punks!

    Like

  21. Bob W Avatar
    Bob W

    I absolutely must take this opportunity to commend Paul for being right on target as do to my experience this is bound to be a very rare occurrence. Thank you Paul and for the benefit of all of us please take note of your thought patterns when you came up with that.

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  22. Mikey McD Avatar
    Mikey McD

    Paul, agreed! “This is the silliest conversation … Debating about the connections of two things that have nothing to do with each other rather than talking about the issues involved is pretty lame .
    Posted by: Paul Emery | 06 June 2011 at 12:59 AM “

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  23. Bob W Avatar
    Bob W

    Thornton,
    How you can extract an attempt to “get rid of Diaz” out of all the discussion about the BOS escapes me. You may be able to claim that this is the AtPac Diaz issue but anyone paying attention knows that it is the BOS that is being scrutinized. Now go back and try to catch up.
    And the rest of you libs should take note of the reaction of the righties to the conduct of the BOS now and as things evolve.

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  24. Mike Thornton Avatar

    Well, Bob, why don’t you go catch up on what the regressives have said on this very page about, how they can’t let the hard money scandal distract from AtPac?
    This whole thing (for the regressives) has been about getting Diaz out and Barry in from the very start!

    Like

  25. wmartin Avatar
    wmartin

    “This is the silliest conversation yet on this blog and believe me there’s plenty of competition. Debating about the connections of two things that have nothing to do with each other rather than talking about the issues involved is pretty lame .
    Posted by: Paul Emery”…
    So just exactly what are your thoughts on Mr. Thornton’s post?
    Honestly, I never thought of a racial angle to this, but if the shit sticks, throw it. I’m thinking that a good dividing line for accusations might be the quadroon level and above. Local investigative reporting can do a quick DNA check on the wronged public figure and work out some sort of racism coefficient.
    I admit that I’d like to have a bit of schadenfreude about the slow motion train wreck surrounding all the local real estate chicaneries, it’s been fun watching people scrabble about for (largely) fake cash on the ground, but I just know that I’ll end up paying for it.
    Like the Flim Flam Man sez: “You can’t cheat an honest man”, but the thing is that you can. It goes like so.
    . Combine EZ credit with a speculative frenzy.
    . The players on the table keep doubling down while the casino accepts their bets. Everyone will get rich buying a house!
    . Elect a President who has every appearance of being in the pocket of the financial biz.
    . A ruling elite who stands to lose a lot of money.
    . A political class who wants to bail out the players. It’s for the children!
    The net result is that it’s likely that those who weren’t in the game will be forced to pay for it.
    The tricky thing as an investor or saver, especially going forward, will be to somehow avoid the clutching hands of an incredibly wasteful government and a profligate people.

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  26. Bob W Avatar
    Bob W

    OK Mike, I take it back. Don’t bother trying to catch up.

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  27. Mike Thornton Avatar

    Why would comparing the local regressive attacks on Diaz to the national regressive attacks on Obama, be all that difficult a thing to understand?
    When it comes to AtPac, I’m all in favor of the County and its officials (including Greg Diaz)being held accountable for whatever they’ve done. I also believe that Newell and Ruble and the rest need to be held accountable.
    What I don’t believe in, is trying to downplay one, in order to play up the other. Especially when the one that is trying to be played up, is being done for the political advantage of a narrow group of extremists.
    Nobody in their right mind would want Barry (with his political bias and built in conflicts of interest)in charge of counting votes.

    Like

  28. Todd Juvinall Avatar
    Todd Juvinall

    ooga-booga. What a hoot!

    Like

  29. Mike Thornton Avatar

    “ooga booga, What a hoot!”
    Translated into English, means: “Holy crap, Thornton just nailed us to the wall, again!”

    Like

  30. Todd Juvinall Avatar
    Todd Juvinall

    Incorrect translation. It means, Oh golly, the republicans are mean an scary so I hide under my bed. What a hoot.

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  31. Steve Enos Avatar
    Steve Enos

    Now at least some of the truth about what Citizen’s Bank has been up to is getting out. Citizen’s “loaned” Lester a lot of money.
    Citizen’s is going to be taken over in the future, I’ll bet you on that. They haven’t paid any of their federal bailout loans, their stock is almost worthless and word is at long last starting to get out abut where all the money went…. regardless if the spokes person for Citizen’s has said they will not let the public know where all the money went and who got the massive real estate development loans that are now busted. Citizen’s made this statement in a prior Union story, it’s fact.
    Sooner or later it will be made public that some of the Citizen’s Bank Board members and key loan officers are directly connected to the developers that got these big, now failed real estate development loans.
    It was days ago that the news at long last came out about a commercial loan officer with Citizens Bank being sentenced in federal court to three years in prison after pleading guilty to embezzlement and other charges.
    Melvin Rohs pleaded guilty to three counts of theft, embezzlement or misapplication of bank officer or employee and two counts of making a false statement in connection with a loan application or renewal. According to court documents, the loss associated with his criminal conduct totals more than $2 million.
    This is just a small part of what has taken place. So where did a lot of the “failed” money go? Why does Citizen’s Bank refuse to disclose the bad development loans and who got them? The taxpayers bailed out Citizen’s and the taxpayers deserve the information.
    Some bank board members and key loan officers made sure that a number of real estate developers got big loans for their proposed real estate projects. Some of these projects were at the same time being represented by the people and/or companies connected to some of the board members.
    This will all come out sooner or later, one way or another. Citizen’s will be seized and taken over sooner or later is my bet.
    Citizen’s needs to come clean and tell the public where all the big, failed real estate loans went… like the Sandy Sanderson failed Northstar development (2 Million loaned by Citizen’s). The list is long and the connections from the failed real estate loans to folks inside of Citizen’s Bank needs to be made public.
    It’s the taxpayers that have stepped in to bailout Citizen’s Bank, it’s taxpayers money… so where’s the Tea Party on this one?
    Regardless of what Todd and Barry try to claim there is a lot more to this story than is being released currently. Stay tuned… Citizen’s Bank is the larger part of this story… as I have been posting about for th elast two years.

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  32. Mike Thornton Avatar

    Sorry, you must have me confused with either a liberal or a regressive.
    As far as I’m concerned the republicans are a bunch of chickenhawk sissies.
    All they do is bark and growl like terrified dogs and then as soon as somebody stands up to them, they run, hide and whine…

    Like

  33. Greg Goodknight Avatar
    Greg Goodknight

    “Holy crap, Thornton just nailed us to the wall, again!”
    Thornton, I expect all of your opposition sees your ‘nailings’ as being akin to the first panel of this Dilbert:
    http://ncwatch.typepad.com/media/2011/06/this-reminds-me-of-some-of-the-discussion-on-this-blog.html
    Off the wall non sequiturs.

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  34. George Rebane Avatar

    All, please don’t misunderstand, my admonition in the post is not to ignore the hard money brouhaha, but simply to prioritize it in today’s scheme of things. Right now there is no evidence that the DA has done anything wrong, and the investigation by multiple agencies is ongoing as reported by the SacBee and picked up by The Union. More to come, this issue is not going away and there is plenty of stuff in the public record about which to question our Supes.
    Tomorrow will be here soon enough, and then there might even be something serious to consider. Today we have $1.2 million sliding toward $3 million.

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  35. Todd Juvinall Avatar
    Todd Juvinall

    Greg, that is what they do. They try to change the subject when their hands are caught in the cookie jar. Thornton is a rent seeker and Enos, we have no information he has a job.

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  36. Todd Juvinall Avatar
    Todd Juvinall

    George, you are a wise man. We on the right do not condemn someone or pre-judge until all the facts are in. Cliff is OK by me until proven otherwise. Diaz and the lawsuit have many more pieces of information in the public domain and the quest to get the rest of the facts is underway. Keeping this thread focused by not letting the leftwingnuts to highjack it is commendable.
    BTW, I am unwilling to condemn the Supes because I was relentlessly attacked when I was there and I usually try to give them the benefit of the doubt. When I was there there were two of us who wanted to return the duties of our position to one of oversight. I had proposed a BOS member on each department as a way to head things off because we were blamed regardless. My position was if I am going to be blamed I want something to say initially. I could not get the third vote.

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  37. Mike Thornton Avatar

    George, I’m all for accountability and that includes with the County and AtPac.
    As of today, how much money has the County of Nevada actually been ordered to pay AtPac?
    I really don’t know the answer to this question and so I’m curious, since it seems like a lot of the reportage on this subject has been focused on what AtPac claims it’s owed and not yet what the County has actually paid. Is this correct?

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  38. George Rebane Avatar

    MikeT, I’m not aware of any information about the county being in arrears to AtPac, which itself would be a matter separate from the lawsuit. The only information released to the public on the lawsuit’s costs is that we have already committed to legal costs of $1.2M. And this does not include future costs of responding to the summary judgment, going to trial, mediation, and any additional punitive judgments that may be assessed by the court or through mediation.

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  39. Mike Thornton Avatar

    OK, so in other words the only (though sizable) costs, so far, have resulted from the County defending itself against a lawsuit, something that one would hope it would do (if appropriate) to protect the taxpayers money against (possibly) frivolous claims, correct?
    As a defender of the taxpayer dollar, would you advocate that the County simply capitulate and settle any and all lawsuits, without proof of merit or is AtPac a “special” case?
    If so, why?

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  40. Bob W Avatar
    Bob W

    Mike,
    Of course I will let George answer for himself, but I for one can tell you right now that I would have preferred that they took the $30,000 option. Principle is not worth $1,170,000.

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  41. George Rebane Avatar

    MikeT, the arguments and reasons for not even having a lawsuit on this matter, and, most certainly for an immediate settlement, have been the subject of my posts on this and the numerous comments in the comment streams.
    The answer to your posed question is an obvious NO.

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  42. Steve Enos Avatar
    Steve Enos

    Like i have been posting about for a long time… Citizen’s Bank is involved and there is a LOT more that will come out in time.
    Like the info Citizen’s Bank has refused to show the public about where all the massive, failed real develoment loans are at, who got the loans, what board members of Citizen’s have connections to the loans, etc., etc.
    I bet the Citizen’s Bank will be taken over by the Feds in the near future. Their stock is tanked, they haven’t made any of their 7 scheduled bank, taxpayer funded bailout payments, no surprise, I predicted all this and have posted about this for a long time here and on Russ’s blog too.
    When all the bad development loan information at last gets out to the public it will include the names of some additional, well known locals in the real estate development world.
    I continue to take the position that Citizen’s should disclose this information to the public… it’s a matter of community trust. But the information that has come out so far about Citizen’s Bank shows where all this is headed… sooner or later the info will get out to the public.

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  43. George Rebane Avatar

    SteveE, can you draw some specific connections from Citizens Bank to Nevada County’s hard money markets that SacBee is investigating and reporting – people, places, loans, deals, projects, … ?

    Like

  44. Mike Thornton Avatar

    If the County gets its legal fees and court costs paid by AtPac, will that satisfy you guys or will they still be guilty of mismanagement and be obligated to give Barry, Diaz’s job?

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  45. Bob W Avatar
    Bob W

    Personally I have no acquaintance with, issues with or interest in Diaz or Barry. If the County comes out with less than $30,000 in losses I will be just fine with that. If the County ends up with costs way over that, then I will hold the BOS responsible. And at this point, all five of them.

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  46. George Rebane Avatar

    MikeT, I have to echo BobW. If the outcome of this is that AtPac is guilty of a nuisance suit or worse, and winds up having to make the county good on its costs, then the Supes wind up as heroes and I will be the first to declare my misapprehensions and redeclare my allegiance and great relief.
    Your continuing to bring up Diaz and Pruett in these comment threads must satisfy some mysterious objective you are trying to achieve. Diaz has connection to this suit only as one of its named defendants, and Pruett has no connection whatsoever, expcept perhaps in your mind.

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  47. Constance W. Avatar
    Constance W.

    Enos can find the following ‘characteristics of evil’ at Citizens bank:
    They are a for-profit company. LOL

    Like

  48. J Cutter Avatar
    J Cutter

    “…and Pruett has no connection whatsoever…”
    Really George?
    True that he is not a named party to the suit but, your ideological affiliations aside, wouldn’t you honestly think it somewhat curious that a highly outspoken, extremely partisan attorney/advocate acted as counsel to the Plaintiff in the run-up to litigation between AtPac & Nev County, as he had in the costly Plasmatronics case back in Indiana, no matter your affiliation?
    here’s a bit of info on that debacle for those uninformed (but there is a wealth of info out there as to the ongoing case and allegations of fraud):
    http://www.crownpoint.net/discussion/viewtopic.php?f=2&t=541
    http://www.nwitimes.com/news/local/lake/crown-point/article_1bd046ae-fa19-5398-91c0-02975a84e127.html
    That just maybe the counselor’s advice had something to do with pushing toward that costly litigation at the expense of the public?
    And that the same attorney would seek an office wherein a conflict of interest could be perceived by many, as that same former client (Plaintiff) was the major contributor to his campaign?
    Not to mention the same advocate’s failed attempt at attaining political office back in Indiana just a couple of years earlier, whilst openly criticizing a county department head in that region?
    http://www.nwitimes.com/news/local/article_2834a111-21ee-5bae-8ad8-707618f89506.html
    I find it difficult that you’d not see why there are those of us who are at least curious, if not suspicious, that this appears a bit of a power grab via disruption of our very sensitive local government offices; ultimately leading to the loss of the much needed public resources that the same counselor/candidate/advocate is proclaiming to conserve.
    I’m actually amazed these questions to facts and motivation have not been discussed.
    Not that I expect anyone to believe it, but I’m not even playing politics here, just looking for the unseen angles and forces that may have helped propel the matter to this point.

    Like

  49. Paul Emery Avatar
    Paul Emery

    I’ll be airing an interview with District Attorney Clifford Newell tonight on kvmr’s news program at 6PM. It will be available as a podcast as well, Go to kvmr.org

    Like

  50. Russ Steele Avatar

    J Cutter,
    If we had never heard of Barry Pruett, would Diaz not have done what he did to give Aptitude a log into AtPac software before the BoS had approved the contract, in effect giving them access to the AtPac Intellectual Property. What has Barry’s past done to impacted what Diaz and the County Staff and BoS have done in this case. Yes, he brought these action to the public attention during his campaign, but he did not cause the actions. He only brought them to the public attention. Should we not know about this potential corruption, should we just avoid the issue? Barry’s past has no impact on the future action in Nevada County. Let’s stop trying to change the subject and get back to what Diaz did and the lack of leadership at the County level.

    Like

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