CMB Amended Complaint Against Victorville-Caldwell- Roberts


Google

Here is the PDF file so you can judge for yourself what it says or doesn't say. It requires Adobe Reader to access, but you know that. Enjoy!

Click filename below to access file

FIRST_AMENDED_COMPLAINT.pdf

 


Caldwell, Roberts named in $33 million lawsuit


Lawsuit claims key city leaders were motivated by corruption, cronyism

VICTORVILLE • Councilman Terry Caldwell and former city manager Jon Roberts have been added as defendants in CMB investment group’s $33 million lawsuit against the city, which claims malicious fraud, breach of contract and more.


Victorville’s attorneys have asked the judge to throw out the entire case, saying Caldwell wasn’t authorized to sign the contract in question.


The
lawsuit stems from an investor recruitment trip Caldwell, Roberts and Inland Energy’s William Buck Johns took to Asia last April.

CMB coordinated the trip, to secure 200 investors from China and South Korea willing to lend $500,000 each for projects at Southern California Logistics Airport in exchange for green cards under the federal EB-5 program.


A few months after the trip Roberts said the
city decided to pursue federal approval to secure investors on its own.


However, while in Shanghai, Caldwell signed a memorandum of understanding with CMB forbidding the city from using any of the company’s information or consultants for a period of two years. Caldwell signed the document three times — in his roles as mayor, chairman of the redevelopment agency and chairman of SCLA — just below a line that reads “the undersigned agrees to be bound by the binding provisions of this letter.”


When asked Monday if he understood the MOU to be legally binding when he signed it, Caldwell said simply, “I don’t know.”


Court documents from the city’s attorneys state Caldwell was not authorized to bind the city in a contract without approval of the council, and so the agreement he signed isn’t valid.


CMB, on the other hand, said Caldwell indicated he was authorized to approve the MOU and that signing it was part of an “ongoing and continuing fraudulent scheme” to gain inside information and use it to “unfairly compete against CMB.”


The suit goes on to allege that Caldwell and Roberts “were motivated by corruption” so that “they and their long-time cronies at Inland Energy could generate even more profit for themselves” if CMB was out of the picture.


The firm is seeking damages, plus an injunction to stop Victorville from using contacts and business plans CMB claims were gained.


Roberts did not return a request for comment from Colorado.


Brooke Edwards may be reached at 955-5358 or at bedwards@VVDailyPress.com.

Rothschild, Caldwell blast Daily Press


April 22, 2009 - 4:42 PM

FROM STAFF REPORTS

VICTORVILLE • During the “council reports” portion of Tuesday night’s meeting — usually reserved for discussing committee information or items for future agendas — Councilmen Mike Rothschild and Terry Caldwell spent several minutes disputing the Daily Press’ coverage of Victorville.


Rothschild took exception to Sunday’s story “
Victorville credit ratings suspended,” while comments from Caldwell were triggered by Wednesday’s article “Caldwell, Roberts named in $33M suit.”

Mike Rothschild:
“I’m probably going out on a limb getting shot by the Daily Press again, but I thought the story on the bonding issue was atrocious — totally misleading. And again this points to constant harangue with no substance to it at all on their stories. Just some salacious headlines and that’s my opinion and I’m gonna ... I can die with it. I’m sure they’ll be picking on me next for it, but that’s my opinions on the Daily Press.


“Now my wife loves the coupons and the advertising parts, she practically lives for that section. There’s an incredible sports section in the Daily Press, there’s special features that are run, the business section, the ads that are in the newspaper — practically every section in that newspaper is very well done with the exception of their news section, which is scandalous. Their news section in my opinion is an editorial page. That’s all it is. It’s one personal writer’s opinion. So that’s what I’d like to put in for my comments for the council.”

Terry Caldwell:
“Mayor Cabriales, I guess based on Councilman Rothschild’s comments, I would like to give a brief report. For those who have seen the advance section of the Daily Press today, which will be tomorrow’s (Wednesday’s) paper, there’s a full, front-page article with regard to comments that I allegedly made with regard to China, CMB. The comments that Brooke Edwards put in that article were quite, quite startling to me — didn’t bear my recollection.


“I have specifically asked the City Attorney, and he’s had members of his staff research it. My comment was that it... the lawsuit is without merit, it’s frivolous. Representatives of our legal team told me today that the article which will appear tomorrow is fiction, bears no resemblance to the truth. If you haven’t read it, you’ll see it in the morning, but I feel compelled to say that. I’ll have a lot more to say once the paper hits the street, but that’s my report.”

The Daily Press approached Caldwell following these comments and gave him a chance to clarify what portions of the story he disputed before it went to press. Caldwell refused to discuss the matter at all, saying the council meeting was an inappropriate time and place for that conversation, and that he’d prefer to respond in writing after the story came out.


The Daily Press is still waiting to hear more on Caldwell’s concerns.



Google

 

You are at www.paveroadsfirst.com based in Hesperia California. Our goal is to improve the quality of life in Hesperia for the people who live in Hesperia.

”If everybody is thinking alike then somebody isn’t thinking.”– General George Patton

"There is only one corner of the universe you can be certain of improving, and that is your own self. So you have to begin there, not outside, not on other people. That comes afterwards, when you have worked on your own corner." -Aldous Huxley

Old Chinese proverb: "Unless you change direction, you're apt to end up where you're headed.'"