Mon10202014

News

Campaign finance reports show lots of loans, few outliers

Campaign finance reports show lots of loans, few outliers


Ellie Van Houtte/ Town Crier
Campaign yard signs are just one expenditure for candidates during election season.

Election finance filings are in, and Los Altos appears to be hosting a few financially lopsided races.

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Schools

Three Los Altos schools earn National Blue Ribbon designation

Three Los Altos schools earn National Blue Ribbon designation


Ellie Van Houtte/Town Crier
Bullis Charter School students wear their school spirit clothing to greet their mascot Oct. 3 in celebration of being named a National Blue Ribbon School.

Blach Intermediate, Egan Junior High and Bullis Charter schools ea...

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Community

Sports

Spartans run wild(cat) on Eagles

Spartans run wild(cat) on Eagles


Ellie Van Houtte/Town Crier
Mountain View High running back Austin Johnson goes for a big gain after evading Los Altos High defensive tackle Phil Alameda in Friday’s game. Johnson scored two touchdowns for the Spartans.

After unveiling its wildc...

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Comment

Logan, McClatchie, Peruri for LASD board: Editorial

This is a crucial time for the Los Altos School District. Its leadership faces the challenge of balancing enrollment growth versus maintaining the small, neighborhood schools that make it a very popular district to attend. The district must also adap...

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Special Sections

City's minimum-wage hike earns mixed reviews: Raise to $10.30 an hour meets with approval – and concern

City's minimum-wage hike earns mixed reviews: Raise to $10.30 an hour meets with approval – and concern


Ellie Van Houtte/Town Crier
Tandava Waldon, left, manager of East West Bookstore on Castro Street in Mountain View, works with a customer. Waldon said the recently approved minimum-wage hike will have little impact on his business. “It’s not such a...

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Business

Delay Social Security? An easy way to decide

One of the most heatedly debated questions regarding Social Security is when to start.

You have the option of initiating benefits as early as age 62 or as late as age 70. The longer you wait, the larger the monthly payment you will receive over your...

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Books

Helping kids catch a few Zs: Local dental hygienist pens meditative bedtime book

Helping kids catch a few Zs: Local dental hygienist pens meditative bedtime book


Ellie Van Houtte/Town Crier
Mimi Sommers, who works at a Los Altos dentist’s office, recently wrote a children’s book.

A local dental hygienist recently published a book that aims to ease parents and children during a sometimes anxious e...

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People

SUZANNE MONICA DIMM SPECHT

SUZANNE MONICA DIMM SPECHT

Suzanne Monica Dimm Specht passed Tuesday, Sept. 9th at the age of 84. Sue was born on April 21, 1930 in Portland, Oregon. After graduating from the University of Oregon in with a degree in Music, Sue taught in a little town called Clatskanie, Oreg...

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Travel

Los Altos resident's visit to North Korea proves enlightening

Los Altos resident's visit to North Korea proves enlightening


Courtesy of Sally Brew
North Korea is home to many monuments honoring its “Dear Leaders,” left.

In August, I traveled for 11 days with MIR Corp. to North Korea, a fascinating country that is almost completely cut off from the rest of the world. ...

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Stepping Out

'Trovatore' takes the stage in Palo Alto

'Trovatore' takes the stage in Palo Alto


Courtesy of José Luis Moscovich
West Bay Opera’s production of “Il Trovatore” is slated to open Friday night in Palo Alto and run through Oct. 26.

West Bay Opera’s production of “Il Trovatore” (“The Troubadour”) is scheduled to open this weekend...

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Spiritual Life

Magazine

Local events add color to autumn calendar

Local events add color to autumn calendar


Van Houtte/town crier Visitors make their way through the Children’s Alley.

As Los Altos’ signature Chinese Pistache trees exchange their summer green for vibrant hues of yellow, orange and red in the fall, an abundance of local events also ad...

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Judge rules against local businessman in Ponzi-like case

After a year of back-and-forth, a judge concluded this week that Los Altos resident Mark Feathers and his company, Small Business Capital Corp., violated federal securities and exchange laws.

U.S. District Judge Edward J. Davila accepted Securities and Exchange Commission evidence that because of fraud and mismanagement, SB Capital’s 400 investors have lost approximately 25 percent of the $42 million they invested.

In an order filed Friday, Davila granted the SEC’s request for a summary judgment and denied Feathers’ competing request for the same. He ordered the “disgorgement of ill-gotten gains” and set a hearing date Oct. 22 to consider “what remedies are to be granted and in what amounts.”

A court renders a summary judgment when a judge finds no genuine dispute as to any material fact – in other words, when evidence appears so conclusive as to not require a full trial. Representing himself and his company, Feathers had to show what Davila called a “genuine issue for trial.” In his order, Davila laid out why Feathers’ submissions to the court did not meet that standard and discussed to what extent the court had to cut Feathers some slack – to “liberally construe” his submissions – because he represented himself without a lawyer. Evidence submitted to the court must include affidavits or “other evidentiary material,” and Davila described Feathers’ submissions as falling short of that standard.

“I have been outnumbered by a large margin in the manpower necessary to present facts, never mind putting them into the right legal framework,” Feathers told the Town Crier in an email.

He wrote to investors that he would appeal the judgment.

Investors, many of them Los Altos residents, bought into two mortgage investment funds Feathers managed from an office on San Antonio Road. The SEC contended that Feathers transferred money from the funds to pay expenses and make cash distributions to investors that masqueraded as “returns on investment,” maintaining an illusion of profitability.

SEC attorney John Bulgozdy described the process of using investor money to pay returns as “Ponzi-like.” Feathers maintained that because he disclosed the loans and transfers to investors, his actions were aboveboard and not in fact evidence of fraud and misrepresentation.

Feathers submitted hundreds of documents including SB Capital paperwork and emails to the court, but Davila wrote that Feathers didn’t indicate with sufficient specificity what he believed they proved – “It is not the task of the court to comb through the record in search of genuine issue of triable fact.”

In his order, Davila referenced testimony from an auditor and a consultant suggesting that Feathers loaned himself money from the funds, then documented it in a way that made the business appear to still be generating profit.

Davila had to weigh whether a “reasonable investor” might have made a different decision with his or her money if he or she had known about the loans and money transfers at SB Capital. He concluded, based in part on declarations two investors made to the SEC, that investors might have withdrawn their investments if they had known what the company was doing.

Davila declared that Feathers’ accounting demonstrated an intent to deceive or, at a minimum, “extreme recklessness in his management of the (f)unds.”

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