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News

Mountain View braces for Super Bowl crowds

Mountain View braces for Super Bowl crowds


Graphic Courtesy of City of Mountain View
The purple parking lots above indicate where paid parking for the Super Bowl is allowed in downtown Mountain View. Other lots are open but still carry three-hour time constraints.

Downtown Mountain View wil...

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Schools

Los Altos High student hopes to bring animal therapy to school

Los Altos High student hopes to bring animal therapy to school


Courtesy of Christine Lenz
Los Altos High junior Riley Fujioka, left, works with Animal Assisted Happiness program manager Simone Haroush-van Dam.

Research affirms that the therapeutic effects of animals help reduce stress in humans, and one Los Alt...

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Community

Sports

Panthers outpace Priory

Panthers outpace Priory


Shirley Pefley/Special to the Town Crier
Pinewood’s Matt Peery lays up the ball in Friday’s win over Woodside Priory. Peery paced the Panthers with 19 points.

While height helps, the Pinewood School boys are proof that basketball is not ...

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Comment

From the City Manager's Desk: Fulfilling our mission

 

For those of us who work for Los Altos, the mission is “to foster and maintain the city of Los Altos as a great place to live and to raise a family.” The city’s employees take this mission seriously and – individually ...

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Special Sections

'Machos': Middle Eastern nachos ideal for Super Bowl

'Machos': Middle Eastern nachos ideal for Super Bowl


Photos Courtesy of Blanche Shaheen
Blanche Shaheen, above with her brother Issa, shares her Middle Eastern take on nachos – ideal for a Super Bowl party. Shaheen’s “Machos,” right, feature feta, tahini sauce, Persian cucumbe...

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Business

Businesses on Main Street make moves

Businesses on Main Street make moves


Alicia Castro/Town Crier
Several stores on Main Street in downtown Los Altos are in the midst of changing hands.

In the coming months, Main Street will welcome several new businesses to fill empty storefronts.

Jennifer Quinn, the city’s econo...

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People

ROSEMARY FRASER

Rosemary Fraser, age 81, a long-time resident of the Los Altos/Palo Alto area, died peacefully Friday, the 22nd of January at her home. It was a sudden death; hypertension was the underlying cause.

Born in 1934 in Florence, Arizona, Rosemary enjoyed...

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Stepping Out

West Bay Opera tackles Tchaikovsky's 'Onegin'

West Bay Opera tackles Tchaikovsky's 'Onegin'


Otak Jump/Special to the Town Crier
Olga Chernisheva and Silas Elash perform in West Bay Opera’s “Eugene Onegin.”

The West Bay Opera production of “Eugene Onegin” is scheduled Feb. 19-28 at Lucie Stern Theatre, 1305...

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Spiritual Life

How to cultivate childlike faith in a grown-up world

And Jesus said: “Truly I tell you, unless you change and become like little children, you will never enter the kingdom of heaven.”

– Matt. 18:3

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Inside Mountain View

New right-to-lease ordinance promises relief for renters

New right-to-lease ordinance promises relief for renters


Mountain View Tenants Coalition/Facebook
Residents gather in the fall to protest Mountain View’s rising rents. Rent relief is on the way in the form of a new ordinance.

A controversial Mountain View law requiring landlords to provide lease opt...

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Both sides move for decision in Ponzi case

In what may prove a last barrage of documents, the Securities and Exchange Commission and Los Altos resident Mark Feathers filed dueling requests for a judge’s final decision last month.

Feathers, accused of misleading investors in the funds he managed, asked U.S. District Judge Edward J. Davila for a summary judgment exonerating him.

His Los Altos-based company, SB Capital Corp., managed two funds that had gathered approximately $42 million from investors over the past five years. When the SEC seized them in June, an appointed receiver assessed the funds’ holdings at approximately 75 percent of their stated value, suggesting that investors lost some but not all of their money.

SEC prosecutor John Bulgozdy seeks more than $12.3 million from Feathers, the amount approximately representing what his 400 investors stand to lose as the business is dismantled, plus a $300,000 additional penalty. Bulgozdy did not suggest that Feathers necessarily had that money among his assets, currently frozen by the court.

In its case, the SEC depicts SB Capital as a company that had lost money on underperforming investments in recent years.

Bulgozdy presented evidence that Feathers had moved money around the business to disguise losses, present investors with the appearance of success and continue to pay himself.

Feathers, in turn, submitted documentation of SB Capital investor correspondence that he believes demonstrates that his company operated transparently and with investor notification and approval.

At the heart of the case lie questions of comprehension: Did investors understand, read and sign documents concurring with SB Capital’s business practices; and did the company break the law even if it had investor support?

Investor approval or deception?

One document, an SB Capital mailing introduced as evidence, illustrates the contending interpretations heard in court. In it, Feathers cheerily stated that fund note investments were “performing as agreed” but requested that investors sign a form allowing the company to make a loan to itself, or, as he defined it, “assume any deficit to the note amount through a receivable to the fund.” He assured them that “this action will not likely have any material bearing on future fund member earnings.”

According to the SEC’s interpretation, Feathers sought to borrow funds so that he could continue to return interest at a rate approaching 7.5 percent and fund his business, even as the investments failed to perform. Feathers alleged that this act of borrowing was explained in writing, but some investors interviewed by the SEC claimed they absolutely did not understand that their investments were not performing as well as returns seemed to indicate.

Campbell resident Robert Morris described investing larger and larger increments of money with Feathers’ company, as his account statements showed a rosy rate of return each month. He reinvested that return, sinking himself deeper into the enterprise.

“At no time did I understand that I was being asked to approve (SB Capital) borrowing money from IPF (Investors Prime Fund) or SPF (SBC Portfolio Fund), nor did I understand that I was being asked to ratify prior borrowing from the two funds,” he wrote in a declaration.

Decoding assets and liabilities

In addition to arguing that he fully met disclosure requirements, Feathers counters in his court filing that the borrowed money was used properly as “reimbursement of expense or for monies to be spent for expenses.”

David Gruebele, a consultant who worked with SB Capital on accounting issues, explained in a declaration that because SB Capital borrowed the money as a “due from” or manager’s note, it was recorded as an “asset” of the funds rather than an expense.

“I advised Mr. Feathers that (the funds) had distributed more to investors than the funds’ income at that point in time,” Gruebele said. “In response, Mr. Feathers usually assured me that additional income was going to be generated in the near future from new transactions that would balance the overdistributions and/or generate net management. From early 2010 through early 2012, the amount owed by (SB Capital) to the funds grew by millions of dollars.”

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