Why Experience And Maturity Counts

Or: ” I didn’t know I was committing Securities Fraud, really…. ”

California State Law:
Section 25401 provides: “It is unlawful for any person to offer or sell a security in this state… by means of any written or oral communication which includes an untrue statement of a material fact or omits to state a material fact necessary in order to make the statement made, in the light of the circumstances under which they were made, not misleading.”

This is why Ponzi Fiske resigned as President of the Coop. If he does not resign as a “Director” – or at least allow a recall vote – he can absolutely count on spending lots and lots of time down at the courthouse.

The reason is simple. Fiske doubled the value of the tangible assets of the Coop while in the act of public solicitation. It was published in an newspaper article by Phil Santos. This public solicitation was to raise money from fresh C-Share sales to pay the Members who had already formally applied for their shares redemption.

These Members will have their shares redeemed in cash by this December – or the Coop MUST DECLARE INSOLVENCY IN ACCORDANCE WITH CALIFORNIA LAW.

Folks – the Coop has no money. They can just barely pay their invoices. The Coop is going to have to make this move and declare insolvency. That this was highly likely has been evident since this last January. It was obvious to business analysts as soon as real numbers began to appear after Melanie hired an actual controller. Woops! Did I forget to explain that the General Manager didn’t even have a bookeeper?

In my last conversation with the Vice President of the Coop, (a deeply experienced great old guy), he acknowledged that these children on the Board of Directors had followed Melanie Bettenhausen’s advice and driven the Coop off the cliff.

That guy, who was Fiske’s Vice President, then wandered off – and never attended another Coop function. He never again even answered his phone. Why? He understood, just like Mary Ella Anderson (who also resigned) that, other than Robert’s Rules of Order, Colin Fiske didn’t know enough about democracy to support open, frank, and raw discussion – nor change (EVER!) any foregone conclusion cooked up in his young brain.

Life Goes On

Now Ponzi Fiske can either fess up to the Coop membership that he inadvertantly allowed his political co-conspirator, Melanie Bettenhausen, to wreck the business while feeding the press constant bullsh#t like: “trimmigrants ruined us” – or Fiske will face a solid and thick wall of shareholders that are going to sue his rear off for Securities Fraud. In this case, the legal system will make the same facts known and real, tangible, fungible damages will be paid by Ponzi.

“Large”

The crime of Securities Fraud has already been committed. Its black and white, and in the Times-Standard. The damage to our Coop is tangible and, now – after three years waiting for a legitimate financial statement – visible in black and white. It’s signed by an auditor. Like a real one.

Both facts are public, immutable, and open for any of the twenty thousand active members to add their name to the lawsuit. Need some cash?

Under New Management

The new General Manager better have an image of maturity and experience or the NorthCoast Coop will never rise out of Insolvency Clause. It’s an obvious point, but if you are a strawman running from flames, your judgment might be impaired.

Colin Fiske would be wise to quietly resign, completely. He forced two directors, (one his own VP), to quit in open disgust at his lack of fairness. He’s pretty stubborn about knowing that what he thinks is best for everyone else.

That’s his brand.

6 thoughts on “Why Experience And Maturity Counts

  1. Mary Ella Anderson August 11, 2019 — 9:40 pm

    I question the idea that there are twenty thousand active members. How are they active? Where are they active? Certainly not at co-op meetings or in either co-op store. Of course, Colin, the board and Melanie are making great efforts to bamboozle the alleged active members into thinking everything will be fine. And when the few members who attempted to be active came to meetings, they remained meek and submissive to Colin and they certainly didn’t do much to support the dissidents raising the alarms. The co-op is a great business meant to provide its members with healthy and locally sourced food. It will be greatly missed when it finally goes under.

    It’s all theater.

    Liked by 1 person

  2. Mary Ella, Thanks for your valuable viewpoint. I, personally, don’t believe that the Coop will go under. It will become insolvent, meaning those not-so-cocky-now Directors will have to inform the folks who own a few million dollars of “C-Shares” that they cannot be redeemed. I heard a hilarious story that “Melanie was preparing a plan for redemption …”
    Really.

    Like

    1. Mary Ella Anderson August 12, 2019 — 1:54 pm

      Would that be her own redemption or the co-op’s? If sales are off 2%, as I understand they are, and grocery stores lives on returns less than that, how can they keep the doors open and the shelves stocked? I have been going into the co-op on Tuesdays, which used to be their best day of the week, and the store is not full of shoppers. I know that at least one of the public members of he Finance Committee is better informed about these things than the board but will they listen to her and take her advice? The co-op is unique and the only store of its kind in the area. To lose it would be a big set back to our local food production system. But the co-op wins the NCJ best grocery every year because all the workers vote for it, not because many people are shipping there. They aren’t. I don’t see how things can improve under the current leadership, except through legal action. Bit I hope you’re right. You’ve have done a great service with this blog but I sense great discouragement among the workers in the Arcata store.

      Like

      1. Thanks for your input. Legal action is actually ongoing at the moment. At this point the Coop would need to see a large uptick in sales to be able to manifest a plan to cover C-Share redemptions. To generate enough money would require net profits of close to $100K per month before December. Otherwise, the”Insolvency Clause” in the charter will be activated. These silly kids never read contracts, never checked deliveries against invoices, never consulted experts before trying to sell more shares when the bank refused to loan them more money. The chances of avoiding activation of the “Insolvency Clause” based on a Melanie Bettenhausen “plan” for share redemption are close to zero. After all the patent nonsense that girl has fed them, who would trust it? Nobody in their right mind. Nobody. Once the wheelhouse is cleared trust will have to be reestablished with the community and “perhaps” new shares issued and sold. Trumpenhausen and Ponzi will not be involved. In my opinion, the comparison with NCJ’s “Favorite” game will not be the same because there is about 2,500,000.00 of REAL MONEY at risk. We shall see. Today’s Lawsuit Count : Three .

        Like

      2. Mary Ella Anderson August 12, 2019 — 6:40 pm

        Thank you, Robert. This is very useful information. Will you being checking the court calendar to see when the trials begin? It’s my understanding that these trials are public and persons with an interest in them can attend and watch the proceedings.

        Like

      3. I will keep updating the location and dates as it unfolds. There are two different lawsuits which are carried out in public. The stories will be juicy and local. Fiske – the enabler of Bettenhausen’s tomfoolery, is really to be blamed for as much of it as the Defendant, Melanie. They were both counting on the typical somnolence of the membership to float away from the mess they created. But this time the stakes are much higher for all involved. The investigation into the “contractors” who performed $250,000 worth of “consulting and training” on a monthly basis for two years has not been completed. Bettenhausen claimed that the certified Private Investigator was making employees in the store uncomfortable and had trespass charges filed against him with APD. These are the acts of a desperate and dumb twit holding no more cards. The evidence is still existant. But Fiske knows this. According to a prosecutor I spoke with, the likelihood of Fiske’s signature on a falsified State affadavit – necessary for continued Franchise Tax Board operational acceptance – is almost also a certainty. Melanie had asked others for the same thing, according to others whom have been deposed. This would explain his (cough) loyalty to Trumpenhausen. The longer these yoyos delay, the greater the damage to the Institution. But, you see, he would have to chew their own leg off to get out of the trap they are in now. Together.

        Like

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