October 22, 2009
For Immediate Release
Thompson Reuters
Robert Paisola Reports
There will be a formal public Debate on October 22, 2009 between the Candidates at The Legacy Center in Lehi, Utah. We will be bringing this to you LIVE on The 1500 Stations and Networks to whom we report.
On September 11, 2009 we issued the following report for CNN and NBC:
Watch the Pre Election Debate Photo Gallery ADDED October 22, 2009
For CNN
On You Tube
For Fast Company Magazine
For NBC Ground Report
This is the video that was released:
Since that time, we have been investigating this matter in detail and have sought the assistance of members of Congress as well as members of the Utah Legislature including the Utah Taxpayers Association.
Today we received a memo from M. Royce Van Tassell, The Vice President of The Utah Taxpayers Association, who also completed a thorough investigation into this matter: The results are in and our hypothesis is now verified as correct. The statement from the association states:
October 19, 2009
To Whom It May Concern:
The Utah Taxpayers Association has become aware of questions regarding the way
cities transfer funds from enterprise funds to their General Fund or other enterprise
funds. The Taxpayers Association has studied these issues, and believes that the
public notice requirements that apply when transfers are part of the original budget
process, also apply when a city amends its budget midyear. Otherwise, budget
amendments could make a mockery of the notification process.
Two sections of the Uniform Fiscal Procedures Act govern transfers to or from a
municipal enterprise fund. Section 10‐6‐135(3)(d)(i) requires that cities mail very
specific notifications to every ratepayer when a transfer from an enterprise fund is
anticipated in the city’s tentative budget. The notice requirements in Section 10‐6‐
135 ensure that ratepayers have the opportunity to voice support or opposition to
proposed transfers. Section 10‐6‐136 allows cities to increase allocations to any city fund, including an enterprise fund, upon five days notice to the members of the City Council.
In training municipal leaders and staff to comply with these code sections, the State
Auditors Office has repeatedly and appropriately emphasized that any amendments
to the tentative budget must meet the notification requirements outlined in Section
10‐6‐135 and Section 10‐6‐136.
The Utah Taxpayers Association agrees with the State Auditors Office’s application
of these sections of code. Any amendment to a municipal budget constitutes another
tentative budget, so transfers proposed in amendments to a city’s tentative budget
must meet the notification requirements in both sections of the statute.
For example, in amending its FY 2008‐2009 budget, Lehi City transferred $4.25
million from its electric utility fund to a number of other funds, including the
General Fund. Relying on Section 10‐6‐136, they did not provide the notification
requirements in Section 10‐6‐135.
They should have provided this notification to ratepayers. Whether the City Council
adopts the first tentative budget,” or amends that tentative budget, the Legislature’s clear intent is to require full disclosure and notification. No city should be able to skirt these disclosure and notification requirements simply by making the transfers while amending the tentative budget.
That is how the State Auditors Office trains municipal officials, and that is the clear intent of the statute. To the extent that there is any ambiguity about how much
notification Utah law requires, the Legislature should consider appropriate legislation.
Sincerely,
M. Royce Van Tassell
Vice President
Our Original Commentary for CNN I Report :
We have been assured that this issue will be dealt with immediately and we thank the candidates for their cooperation in the production of this International Story. We look forward to being at the City Council Meetings to hear what Mr. Gordon Miner has to say. We will always be asking VERY DIRECT QUESTIONS FOR YOU, the AMERICAN PUBLIC. Stay tuned for our final report on this matter that we decided to hold until after the election, but Ladies and Gentlemen, we will promise you that your voice is being heard and there is MUCH MUCH MORE TO THIS STORY and we look to The Honorable Mayor Kenneth Greenwood to continue to call it like it is, and not permit anyone around him to play games. We ask Mr. Miner and Mr. Holbrook to craft a statement to the public guaranteeing that this will never happen again, and we thank you, the voters, for doing your civic duty and making this happen. This is YOUR COMMUNITY, YOUR CITY COUNCIL and TRUST ME, you will see documents and hear comments that will cause you to line up at the first City Council Meeting to watch the fireworks. We will be there... Will you?
Finally to the people that thought that what we had to say had no merit.... Look at our results.... The World has Changed and THIS IS the new transparent world of government.
Congratulations Gentlemen
We look forward to your difficult questions, debate and cooperation as you lead Lehi Utah into a new era of trust, leadership, accountability and growth.
To your Success,
Robert Paisola, CEO, Western Capital Multimedia USA for NBC Ground Report, CNN IREPORT, FAST COMPANY MAGAZINE, ZIMBIO, WESTERN CAPITAL MULTIMEDIA, The Robert Paisola Foundation and all other venues to which this story appears.
FYI- Our Web Trends Data shows that this report was watched by over 44,000 people in 19 different countries. That is an aggregate figure from NBC, CNN, YouTube, AOL, and all of the other areas of the web that this video was aired. There were over 1235 people in LEHI UTAH who watched this video in full.
EXCLUSIVE UPDATE! WATCH THE LIVE VIDEO CREATED 5 DAYS BEFORE THE ELECTION? MAYBE 4.25 MILLION DOLLARS BEING MOVED AROUND IS NO BIG DEAL? HEAR FROM SOME OF THE CANDIDATES AND OFFICIALS LIVE FROM LEHI UTAH ... BUT HEY..... LETS NOT DISCUSS THIS... JUST DONT FORGET TO VOTE!
YOU WILL NOT BELIEVE THIS STORY "LEHI UTAH, WHAT HAPPENED TO MY 4.25 MILLION DOLLARS"
Robert Paisola Reports Live
September 10, 2009
Los Angeles, California
Salt Lake City, Utah
For Immediate Worldwide Distribution
Western Capital Multimedia Inc. and CNN I Report, WSJ.COM
For Thompson Reuters International Networks
(c) 2009 All Rights Reserved
An Open Letter to Gordon Miner from The Western Capital Foundation Regarding Potential Fraudulent Budget Transfers of 4.25 Million Dollars in Lehi, Utah USA
Mr. Miner,
I wanted to take a moment to formally introduce myself and to make you aware of some serious concerns that we have recently been alerted to by our viewers, readers and listeners around the world about possible illegal activities that are happening in your own back yard.
As I am sure you are aware, my company, Western Capital ( www.MyCollector.com) and the many other divisions of our organization within the Western Capital Group of Companies, including Western Capital Multimedia, work diligently with groups around the world to stop fraud and corruption at the highest levels of Corporate America.
We own many foundations and endowments including the Robert Paisola Foundation located at www.RobertPaisolaInnocenceProject.com that is nationally know.
My Personal site is located at www.RobertPaisola.com .
I am also an international freelance reporter for CNN, NBC, NPR, USA Today and many other national publications, we also syndicate a media feed that is received by millions at www.WesternCapitalMultimedia.com
When we were first alerted to this issue, we attempted to make contact with our congressional delegation, including Senator Hatch and Senator Bennett.
We are awaiting their reply, and the only person who responded was Jason Chaffetz's office, who stated that they would deal with this immediately. You are VERY LUCKY to have Jason as your Congressional Representative.
We have also contacted the many Representatives and Senators in the State of Utah on this and believe that once they read this on CNN, that they will submit formal statements to investigations@mycollector.com
It is amazing how many people that we interviewed, mentioned your name as a potential source to detail this problem for the American Public to whom we report. Now we know why YOU are running for a position on the City Counsel in Lehi, Utah
Therefore, Our questions for you today Mr. Gordon Miner, center around a complex and possibly illegal scheme that is being induced upon the citizens of the City of Lehi, Utah to whom you are intending to serve.
Our investigations are not complete, however it is essential that we receive your assistance so that we may uncover the real truth. We will be posting documents continuously on this matter to support our statements at http://twitter.com/RobertPaisola and www.Facebook.com/WesternCapital
In order to be brief, we will ask the following:
1. Was there a recent utility Rate Hike in Lehi, Utah and was the Rate Hike done and completed in accordance with the laws of the State of Utah. If so, was it done in order to cover a transfer of 4.25 Million Dollars to the General Fund to avoid having to inform the public pursuant to State Law?
2. We are in possession of a series of documents that have been provided to us by one of the victims of this scheme entitled "LEHI CITY CORPORATION EXPENSES WITH COMPARISON TO BUDGET FOR THE 10 MONTHS ENDING APRIL 30, 2009- ELECTRIC FUND"
In that document is is clearly noted that there were Six Operational Transfers from the ELECTRIC FUND to the following:
a. Operating Transfer SWF $250,000.00
b Operating Transfer Museum $160,000.00
c Operating Transfer Water $1,500.000.00
d Operating Transfer Sewer $750,000.00
e OPERATING TRANSFER TO GENERAL FUND $1,000,000.00
f OPERATING TRANSFER TO PI $ 750,000.00
Our auditors have determined that there was approximately 4 Million Two Hundred And Fifty Thousand Dollars (Evidence 453009-209) in transfers. We have been told that these transfers took place without any type of community administration or authority, however we were advised that there may have been a "retroactive meeting by the current city counsel members including Mayor Howard H. Johnson, Lehi City Utah Councilman Johnny Barnes, Lehi City Utah Councilman James Dixon,
Lehi City Utah Councilman Stephan Holbrook, Lehi City Utah Councilman Mark Johnson and Lehi City Utah Councilman Johnny Revill in an attempt to cover up this illegal scam.
Our investigation has further determined that the state law that is in question is [Utah Code 10-6-135(3)(d)(i)], and the relates generally to taxation.
(1) Our issue is "reasonable allocations of costs between funds" and the basis upon which a municipality may aborantly transfer money without public input, thus violating the due process guarantee of the US Constitution.
In this site, there is a statement that requires the city to mail WRITTEN notice to utility fund customers on any transfer of funds when the transfer hinges on whether is an allocation of costs or whether it subsidizes other funds. (We will try to recap what our investigators were told in Washington)
Our position is that there were illegal funds transfers that were deliberate and misleading. They were done for no other reason than to avoid alerting the citizenry of a tax hike. They simply called it a utility fee increase.
Our interpretation of this is that the easiest way to distinguish between the two (tax vs, increase) is to view allocation of costs as reimbursement for materials or services. ( For example, the City billing department provides billing services for all of the City's utilities. So, the City pays for billing services (wages, postage, etc.) through the general fund AND THEN each utility reimburses the general fund for those services by transferring money out of the utility funds and into the general fund.
Any amount of money transferred away from a utility that exceeds the value of the specific material or service rendered to that utility is not a simple allocation of costs.
We realize that this is potentially confusing, however -- if this happened, then this activity has then become a subsidy for which the customers must be
notified BY MAIL under Utah Statute. Did they not break the law?
We have verified this with the State of Utah and The Office of the Attorney General.
We have also been informed that The City of Lehi, Utah has gone on the record saying that the purpose of the transfer was to "cover utility fund shortages" (See Deseret News, June 19), EVIDENCE 3883773-22 which amounts to much more than one fund reimbursing
another fund for materials or services.
Our review shows this statement to be completely false and misleading.
The other requirement is:
(2) "mailed notice to utility fund customers" -
This noticing requirement is different from and has been confused with common public noticing requirements in the past, however in this case it appears that the Legislators in the City of Lehi, Utah did nothing more than play a "shell game" with the money, relying on the ignorance of the citizens and their historic "inattention to detail."
We believe that the illegal scheme was not caught because of the utility-rate-hike issue that we mentioned above and the transfers-of-money issue and the general ignorance of GAP in the populace.
Counsel has indicated that the utility rate hike fell under the common public noticing requirements, while the transfers of money fell under [Utah Code 10-6-135(3)(d)(i)].
According to this law, "a written notice of the date, time, place, and purpose of the hearing shall be mailed to utility fund customers at least seven days prior to the
hearing."
Lehi, City did not follow this law as they transferred, under the shadows of night, $4.25 Million Dollars to what Dave Sanderson, the Lehi City Financial Officer and Jamie Davidson, the current City Manager state as
spare funds" (Deseret News, June 19), to subsidize other funds, INCLUDING THE GENERAL FUND.
(3) taxation - The Deseret News said, "Some residents mistook the utility rate increase for a tax... this is not a tax at all, and is merely an Enronesque Money Shuffle" to avoid having to comply with the law.
This is again, A COMPLETE SCAM.
One of the main reasons that this was brought to our attention, as we usually only deal with National and International Issues, is the commentary that was found on Lexis-Nexis wherein you were quoted to have stated:
"Shakespeare said, 'A rose by any other name would smell as sweet.' But, Lehi’s rose stinks because it is actually a tax. Calling it a utility fee makes it smell better to the general public, but it does not change the fact that it is a tax. There is an old saying in city
government that says, 'It's a lot easier to raise fees than it is to raise property taxes.' That is because the general public innocently assumes that their money stays with the utility and that the utility is operating on a break-even basis.
It is our opinion that the Mayor of Lehi Utah and the above named City Counsel Members including Mayor Howard H. Johnson, Lehi City Utah Councilman Johnny Barnes, Lehi City Utah Councilman James Dixon,
Lehi City Utah Councilman Stephan Holbrook, Lehi City Utah Councilman Mark Johnson and Lehi City Utah Councilman Johnny Revill are simply preying upon that assumption of ignorance of the population."
Gordon Miner....Is this true.
And if so, and if proven true in a court of law, is there a basis for a federal investigation of the administration and possible indictments against the administration for this alleged conspiracy scheme against the Citizens of the State of Utah and The City of Lehi Utah.
This is why we are involved on an International Basis and why this will be posted to CNN I Report.
Are you aware that One Million Dollars of the illegal $4.25 million transfer went to the GENERAL FUND? Isn't this in violation of Utah Code 10-6-135(3)(d)(i)
Is the GENERAL FUND NOT WHERE THE TAX MONEY FROM THE CITIZENRY GOES? So, how could it be possible to even justify in any way at all Monies being transferred to the GENERAL FUND FROM THE UTILITY FUND be done , without being A COMPLETELY ILLEGAL TRANSFER?
We have been involved in covering many criminal cases and under the criminal code, when this happens in CORPORATE AMERICA, it is known as commingled money, and that alone can give Counsel the right to "Pierce the Veil" of Corporate Protection, thus holding the above named gentlemen, in violation of the Federal RICO ACT and Absolute Personal Liability for these illegal maneuvers against the citizens of the State of Utah.
It is so obvious that this scheme to transfer money to the general fund was wanton illegal conduct, simply because to the average individual (not having the forensic accounting team that we have) it easily becomes commingled with and INDISTINGUISHABLE from tax money.
Is this true?
We talked to a Councilman in Chicago, Illinois today who stated "Politicians do this because utility fee increases don't carry the negative connotation like taxes do." he continued, "Aside from the politics, this kind of commingling of utility fees and taxes prevents the public from knowing how their money is being spent."
"If this were to happen here in Chicago, every one of them would be Federally Indicted"
Our dealings with other municipalities around the nation, are very clear that the purpose of the government is to be completely transparent. This is hardly transparent behavior.... much more criminal in nature.
What we are seeing is that this is being described as a "way to do business, so that the public does not know"
We see this as a complete act of fraud and demand your position on this matter, as you have been "the one person in Lehi, Utah who can get things done".
How is this possible for this to happen in America, and how is it possible to happen in my own backyard.
I shall await your immediate reply.
All other comments regarding this investigation should be sent to investigations@mycollector.com and our National Fax Number is 408-889-2415
Oh, take a look at one of the investigations that we just concluded based in Las Vegas at www.TimeShareChronicles.com where we verified illegal conduct on behalf of Consolidated Resorts, Tahiti Village and Goldman Sachs.... that was 750 Million Dollars.
"If this is true, there will be an investigation bigger than The State of Utah has ever seen"
Reporting Live From Salt Lake City, Utah, this is Robert Paisola for CNN I Report
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